Boustead Singapore

[financiallyfree]

I think he is a rare type.

Which then begs the question, what happens when he steps down?

His otherwise unblemished record took a knock during the privatisation of Boustead Project. Would history repeat should there be a privatisation of Boustead Singapore?

what will be a fair price for privatization? i personally hope not, but taking 6x eps and add back cash get roughly 1.6?

[Curiousparty]

BSL@0.94

Thanks everyone for the input.  Nice to see so many valuebuddies keen in BSL.

I'm still waiting for the star to be aligned before vesting.

Gratitude 

May I ask what the criteria area for stars alignment?
usually, when all the stars are fully and beautifully aligned, the share price will not be cheap any more..hahaha..

I think he is a rare type.

Which then begs the question, what happens when he steps down?

His otherwise unblemished record took a knock during the privatisation of Boustead Project. Would history repeat should there be a privatisation of Boustead Singapore?

what will be a fair price for privatization? i personally hope not, but taking 6x eps and add back cash get roughly 1.6?

why 6X EPS? A more reasonable target should be 10X EPS + Cash.

The geo-spatial segment is the Super cash cow, warranting at least 15X PE...

[Curiousparty]

with the reunification, can we expect Boustead EPS to be even higher than the past year, 13.4 cents?

Boustead FY2024 AGM Presentation.ashx (sgx.com)

===================

“Reunified as One”
The Chairman reminded shareholders that after nine years, Boustead Projects Limited
(“Boustead Projects”) was reunited with the Company on 26 January 2024. As the Boustead
Group (the “Group”)’s financial year ends on 31 March, the Group’s financial results for the year
ended 31 March 2024 (“FY2024”) only captured the 99.4% share of the results of Boustead
Projects for the final two months of the financial year.

[weijian]

In Spore, freehold land will probably be "immensely" profitable over time as long as one didn't get them at too expensive a cost. COMO Hotel and Brands is a very niche hospitality brand and so we can see FF Wong's acumen in trying to differentiate in an increasing crowded (and more expensive) Sporean hospitality space.

I am quite sure that there will be plenty of Towkays looking to buy this sumptuous asset as part of their investment property diversification.

MINUTES OF ANNUAL GENERAL MEETING

As for the Real Estate Business, it needs to bring the Bideford asset, its single largest asset, into stabilisation as soon as possible, as well as find a strategic solution to crystalise the development gains from the stabilised portfolio.

https://links.sgx.com/FileOpen/Boustead%...eID=816636

[financiallyfree]

how is como hotel and brand a niche hospitality brand? what is so special about it, its just another hotel.

[money]

i actually think buying this 30 Bideford Road is very very value destructive. Of course management will say they bought by taking advantage of a distressed-asset sale to pick up a prime property at a discount. Bought at around 500m in a 50% JV if i remember correctly, so it is almost boustead's market cap today. Very significant weightage.

Doesnt seem to generate profits, and is quick to point out that it is depreciation that causes it. Not sure if it is even cashflow positive because i cannot find additional information

<Share of loss of associates and joint ventures for FY2024 was exponentially higher at $11.6 million, mainly due
to the depreciation expenses and interest costs that resulted from the commencement of operation in 2H
FY2024 of Boustead Projects’ joint venture property, 28 & 30 Bideford Road, which operates the hotel, COMO
Metropolitan Singapore.>

Why buy the hotel when there is no experience in this sector? Is it really that simple to run and operate a hotel?

[Curiousparty]

there is something called outsourcing of hotel management...
====

In his message to shareholders, the Chairman indicated that the newly opened COMO Orchard at 28 & 30 Bideford Road will continue to be loss making in the near term due to high depreciation and interest costs. The Group’s share of results from Bideford House Pte Ltd in FY2024 was S$(10.0) million (FY2023: S$(1.3) million). 

Can management provide the occupancy rates at COMO Metropolitan Singapore? Was the investment thesis for 28 & 30 Bideford Road based on an assumption of low interest rates? Is the high depreciation of COMO Orchard typical for the hotel business and has management been taken by surprise by these depreciation and interest costs? What is the expected timeline for COMO Orchard to achieve breakeven and profitability?

==========

COMO Orchard is a mixed-use asset – consisting of five commercial and retail floors for lease, and with the remaining floors under COMO Metropolitan Singapore, a hotel under a management contract with COMO. The commercial and retail floors are fully leased out. The hotel has been in operation since September 2023 and requires a longer period (i.e. a series of peak and low seasons) to ascertain average occupancy.

The investment in COMO Orchard was not based on low interest rate expectations and did assume larger losses in the initial years but with a medium-term plan to profitability. The high depreciation costs are unrelated to the property’s function as a hotel but are due solely to the cost of the development which is capitalised and the nature of the land which is freehold. 

Due to accounting policy, management always expected this depreciation because it applies to all assets. Do note that this is a non-cash item and the gap to achieve cashflow breakeven and profitability is not as large as the accounting figures show. The Real Estate Solutions Division’s management is working closely with the hotel operator and tenants to improve the marketing efforts including awareness and outreach, and achieving stabilisation of the asset. This includes collaborations with DA MedSuites, COMO Shambhala, Cedric Grolet and other COMO Hotels and Resorts.

[Bibi]

I have a question to ask buddies here. Boustead proposed dividend was 4 cts and already XD. Those who opt for script will receive the shares based on 90cts. However the current share price is 98cts as of today. I just received the option to receive dividend in script.

So does that mean i should opt for script instead of cash and sell some current holding shares in advance based on the number of script shares i will receive?

[CY09]

Hi Bibi,

yes that will work, you will profit from 8 cents per share sold

[Bibi]

Hi Bibi,

yes that will work, you will profit from 8 cents per share sold

Thanks CY09 for your reply. Appreciate it.