Boustead Singapore

[AlphaQuant]

As for the split of 55/45 between the jv partners - it could well be indicative of the valuations of the properties that the REIT will be holding injected by either partners.

makes a lot of sense - esp given that Boustead now holds 163,000 sqm of GFA vs a targetted 300,000 sqm for REIT - so just ard 54% of the size needed for the REIT.
Window for the industrial REIT formation is also narrowing with the Fed wind-down - better to partner some bloke with the critical mass than to wait to DBL/purchase at rubbish prices.

[greengiraffe]

St James acquired Beijing Tongzhou Integrated Development as part of the RTO at the following valuations:

Phase 1 (100%) - S$1189m
Phase 2 (100%) - S$1184m.

Boustead participated in the development in 2012 for a 4% stake valued at $20.13m.

http://www.boustead.sg/Boustead%20Announ...0China.pdf

Now based on the St Jame's transaction price, Boustead's 4% of phase 1 is valued at S$47.56m, a surplus of $27.43m or $0.053 surplus per share.

Vested
GG

[Contrarian]

I understand FF Wong is very impressed with Pua's ability to create successful retail malls.

[greengiraffe]

Boustead steadily rose to record closing levels of $1.92 after touching an intraday high of $1.95 on Friday.

The closing levels have almost reached analysts fair value targets.

Surprisingly there is hardly any fresh newsflows that have underpinned the heady share price performance.

Would appreciate any insights from any buddies that could possibly explain investors' bullishness on Boustead

Vested
GG

[greengiraffe]

http://infopub.sgx.com/FileOpen/Boustead...eID=288286

At least the water division found jobs to breakeven - no drag to the rest of the group.

[GFG]

Boustead steadily rose to record closing levels of $1.92 after touching an intraday high of $1.95 on Friday.

The closing levels have almost reached analysts fair value targets.

Surprisingly there is hardly any fresh newsflows that have underpinned the heady share price performance.

Would appreciate any insights from any buddies that could possibly explain investors' bullishness on Boustead

Vested
GG

I have been a SH of Boustead since 3 yrs ago, bought at $0.8 or so. Sold out everything today.
While Boustead has been and still is a great company, don't you guys think the valuations are no longer cheap at this stage?
Based on my estimated earnings thus yr, PER is now close to 15, at today's price of $1.9, it is close to 3 times of NTA.
Sure, it has fantastic prospects but I think most of the meteoric rise has been locked in recently.

[egghead]

I'm not too concerned with the price being 3x reported NTA. Reason being that the valuation of the investment properties at $105 million will likely multiply if REITing is successful.

[GFG]

I'm not too concerned with the price being 3x reported NTA. Reason being that the valuation of the investment properties at $105 million will likely multiply if REITing is successful.

That's true... But by how much can it be revalued?
Even at 2x NTA it's considered high.
And the price already includes this anticipation of REIT

[corydorus]

Just curious, is not a property company. Why we are using NTA only to value the whole company ?

[egghead]

If we assume NPI of $18 million with cap rate of 6.5%, that will be $277 million valuation ($172 million above $105 million), i.e. $0.33 per share.