Tuan Sing Holdings

[Curiousparty]

Recurring net income from hotel = $20mil per annum.
Recurring net income from Robinson Point = $7.5mil per annum.

Recurring EPS = ~2.33 cents or 6% (based on share price of 38.5 cents)

Is this sustainable enough ?

[Boon]

Recurring net income from hotel = $20mil per annum.
Recurring net income from Robinson Point = $7.5mil per annum.

Recurring EPS = ~2.33 cents or 6% (based on share price of 38.5 cents)

Is this sustainable enough ?

Hotels Investment (From 1Q2015 results):

"GHG’s revenue increased 5% to A$34.9 million. Grand Hyatt Melbourne and Hyatt Regency Perth reported a combined 9% improvement in RevPAR (“Revenue Per Available Room”), year-on-year, whilst net rental income from office and shopping space registered a 3% increase.
With higher margin, GHG’s net income increased 9% to A$11.9 million. Coupled with a 25% lower interest costs and 6% lower depreciation charges, GHG reported a 78% increase in net profit to A$5.6 million in the current quarter.

After deducting finance costs and deferred tax provision at the investment holding company level, Hotels Investment contributed S$3.2 million or 20% of the Group’s total profit after tax for the quarter."

On annualised basis => 3.2 x 4 = SGD 12.8 m only or 1.1 cent per share.

How do you arrive at 7.5 m net income for Robinson Point - is it given in any of the reports ?

(not vested)

[Curiousparty]

Robinson Point was acquired in October 2013. It is a 21-storey freehold office building at 39 Robinson Road, in the heart of Singapore’s Central Business District. The building comprises approximately 133,830 square feet of net lettable area, which include 3 retail units on the ground floor. The building offers 57 car parking lots bays at levels 3 to 5. Robinson Point was awarded the BCA Green Mark (Gold).

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133,830 sq ft x $8.5 PSF per mth x 12 mth x 55% NPM = ~ $7.5mil.
http://www.officeseekandsearch.com/locations/

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For the hotel, we can expect some further growth in the revenue from
a. the rise in room rate, probably another 10% Y-on-Y,
b. optimization and enhancement of assets. maybe another 10% growth.

[Curiousparty]

Assuming net lettable office/retail space of 230,000 sq ft for the New Robinson Tower and $9.92 PSF, recurrent income = ~ $27.4mil.
Net income = ~$15mil (assuming NPM of 55%) or recurrent EPS = ~1.3 cent.

Bases:-
"In Q1/2015, the average monthly rent of CBD Grade A offices edged up 0.4% quarter-on-quarter (QoQ) to S$9.92 per sq ft, while capital values of CBD Grade A offices stabilised at
S$2,850 per sq ft."
http://pdf.savills.asia/asia-pacific-res...1-2015.pdf

"Notwithstanding the positive retail sales performance in Q1/2015, prime retail rents in Orchard Road dipped 2.0% quarter-on-quarter (QoQ) to S$32.2 per sq ft per month, while
suburban malls held fi rm at S$31.1 per sq ft per month.
http://pdf.savills.asia/asia-pacific-res...1-2015.pdf

Total recurrent EPS =~ 3.2 cents.
a. current 2 hotels (1.3 cents with growth incorporated)
b. Robinson point (0.64 cent)
c. New Robinson Tower (1.3 cent)

The recurring EPS for Robinson Tower is conservative as it did not incorporate the retail rental rate which is 3 times higher. It was assumed that all lettable space is for office use.

Share price should be very well-supported by the recurrent income in 2017/18. There is before considering revaluation surplus and development profits.
( Simple Rule of thumb: Multiple recurring EPS by 20X to roughly get a sense of fair market price – 64 cents, assuming 5% yield )

[money]

How about the discussion about the debt incurred to rebuild the new robinson tower?

How about the fees paid to the directors, CEO, CFO, etc?

[Curiousparty]

Good if we can make a comparison across all property related counters to see which one really pays themselves and their "own people" the most
this should also take into account share buyback because this is done using company's money to consolidate controlling parties' stake as well


e.g. CES - how much did CES pay the Lim family and all its related parties? Doing share buyback to consolidate their own holdings?
E.g Low Keng Huat - Low brothers and friends??
e.g. Oxley - CEO's salary was $20mil?

________
It is all SAMA SAMA la. If one wants to be objective, then one should develop some indicators.
How about total remunerations to "CEO and all their relatives/friends" against "market cap"?
TKs.

Indo management are more conservative in giving out big dividend but not so in their own remunerations and benefits.

[Curiousparty]

http://www.valuebuddies.com/thread-5485-page-6.html

Tuan Sing two 5-star hotels should continue to do well and generate increasing income for the group

[Boon]

NOTICE OF VALUATION OF REAL ASSETS
http://infopub.sgx.com/FileOpen/TBA-1701...eID=436125
 
Net fair value gains from investment properties in Singapore of SGD2.0 million and in Australia of AUD0.3 million (equivalent to SGD0.3 million) totaling SGD2.3 million will be recognised in the profit and loss accounts for the year ended 31 December 2016. In addition, a net asset revaluation gain of AUD16.2 million (equivalent to SGD17.0 million) relating to hotel properties in Australia (classified under “Property, Plant and Equipment” in the accounts) will be recognised as “other comprehensive income” for the year ended 31 December 2016 and be included in the balance sheet as at 31 December 2016.
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Valuation remains unchanged for “Investment Properties” in Singapore, except for Robinson Tower, which is still undergoing redevelopment.
 
In Australia:
Valuation for its Melbourne assets has increased. 
Valuation for its Perth assets has decreased.
Overall, valuation has increased for its Australia assets.
 
It appears that the carrying values of its hotel properties in Australia – even though classified under PPE – are actually “marked to market” – with revaluation gain/loss recognised in OCI - this is interesting.

FY2016 results would be out on 26 January 2017.
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[cyclone]

PUrchase of Sime Darby Centre, Singapore for S$365 million

Tuan Sing Holdings Limited announced that its wholly-owned subsidiary, Gerbera Land Pte. Ltd., has on Friday, 7th April 2017 signed a Property Purchase Agreement with Sime Darby Property (Dunearn) Private Limited to purchase Sime Darby Centre located at 896 Dunearn Road, Singapore. The cash consideration payable is S$365 million. A sum of S$1 million has been paid towards the deposit (with the balance deposit of 10% of the consideration sum less S$1 million to be paid within 10 business days of the date of signing of the Property Purchase Agreement), and the Transaction is expected to be completed within ten weeks from the said 7th April 2017.

The Property sits on a part freehold and part 999 years leasehold commercial land of 13,088.8 sq m (140,886 sq ft) with an allowable gross plot ratio of 1.8 and a maximum permissible gross floor area of 23,559.8 sq m (253,595 sq ft). Currently, the Property is about 96% occupied over a net lettable area of  pproximately 18,832 sq m (202,712 sq ft).

[Boon]

PUrchase of Sime Darby Centre, Singapore for S$365 million

Tuan Sing Holdings Limited announced that its wholly-owned subsidiary, Gerbera Land Pte. Ltd., has on Friday, 7th April 2017 signed a Property Purchase Agreement with Sime Darby Property (Dunearn) Private Limited to purchase Sime Darby Centre located at 896 Dunearn Road, Singapore. The cash consideration payable is S$365 million. A sum of S$1 million has been paid towards the deposit (with the balance deposit of 10% of the consideration sum less S$1 million to be paid within 10 business days of the date of signing of the Property Purchase Agreement), and the Transaction is expected to be completed within ten weeks from the said 7th April 2017.

The Property sits on a part freehold and part 999 years leasehold commercial land of 13,088.8 sq m (140,886 sq ft) with an allowable gross plot ratio of 1.8 and a maximum permissible gross floor area of 23,559.8 sq m (253,595 sq ft). Currently, the Property is about 96% occupied over a net lettable area of  pproximately 18,832 sq m (202,712 sq ft).

Purchase price = SGD 365 m
Cash level as at 31 Dec 2016 = SGD 164 m
Looks like gearing is going to go back up again………………….
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