Low Keng Huat (Singapore)

[revelationofpyramids]

Yesterday's announcement too complicated for me. But I note that PL Square retail portion is valued at $300m for 80% stake or $375m for 100%, which divided by 95,000 sf, means the value of the shops is about $4,000 psf of NSA.

I think LKH the gains given is not the whole story. Shop space undervaluation should be much higher.

[BlueKelah]

What is the demand in the area for offices?
Will the offices be occupied if there is a recession at the end of the year?
You will have to discount for that as it is new property.

[revelationofpyramids]

Eh, almost all the office units are sold already. So, it's a done deal. Money locked in already. Office demand risk is now in the hands of the buyers of the strata units.[/align]

Only the retail shops are yet to be sold, but even that is not a problem. I think it will be sold to a Guthrie unit as this is prob part of the deal when the land was bought for development. And since the transfer yesterday values the retail at $4,000 psf, it looks like a fair deal (although not optimum as strata selling maximises price, like what CES do)

[greengiraffe]

Correction: 95000 sf retail space valued at S$300m against book value of $190m.

At this point of development (dont know what % completed), LKH stand to gain $27.5m (pretax to be conservative) for the dilution from 80% to 55%.

Look at it the other way around - LKH 80% share of original costs of retail podium is S$152m. They sold 25% to existing partner Sun Ventures - Invesco at $75m (based on $300m).

Basically on a net basis LKH's carry costs of the remaining 55% is $77m that is worth $165m or a surplus of $0.119/share.

The remaining 55% stake is likely to generate a recurrent income of around 1.4 cents just on retail rental on 100% when the mall is operational.

Vested
GG

[BlueKelah]

Haha, I ask the same silly qn before... Check out the sheer size of Minton and payar Lebar sq and Ye expected inflow of rev and profits ... Parklane residences is selling very well, it's clear sky till 2015.

Check out gg earlier threads...

Not all developments are equal... Nvm thought it can be so significant as compared to debt level, cash level and etc..

ok I will go see the earlier threads...

from the 2013 report debt level is at 500+million and they not using the 200million++ to pay back this debt?

Hi GG, may I know where did you get the construction cost of $314m? Also how did you arrive at a book value of $1 - $1.2? Current NAV is only ~65 cts. Pls share more detailed breakdown.

Their book value is arrived by "unrealised" value of the properties.

other than this financials does look okish...

[TheMillennium]

Why is this fundamentally strong company being sold at such cheap prices?
A week ago it was at a high of 78cents! Even taking into consideration XD (4.5c)

[Temperament]

Why is this fundamentally strong company being sold at such cheap prices?
A week ago it was at a high of 78cents! Even taking into consideration XD (4.5c)

Market sentiment my friend. Market sentiment overrules all things at least for present till ?

[guru]

Even after theortical XD price of 73.5c,, it probably dropped 14%. If LKH continues with the dividend payout of 4.5c next few years, consider as Mr. Market giving you advance dividend 1st? I rationalised it that way.

Why is this fundamentally strong company being sold at such cheap prices?
A week ago it was at a high of 78cents! Even taking into consideration XD (4.5c)

Market sentiment my friend. Market sentiment overrules all things at least for present till ?

[Jacmar]

For LKH the "kateks" are active in this counter. I know because they borrowed my shares to short. If it drops much further I am going in to pick some. Lets put a short squeeze on them. For LKH we can look forward to 5c for FY13/14 and their earning will only peak in FY14/15 according to the CEO. So we can look forward to at least 10c in total for next 2 years as their projects are essentially all sold.

pls do your own research.

[mobo]

Why is this fundamentally strong company being sold at such cheap prices?
A week ago it was at a high of 78cents! Even taking into consideration XD (4.5c)

I am the hero who bought at 77.5-78 cents