Posted by raymondroy > 2024-07-10 17:01 | Report Abuse

excellent writeup with historical stories and all..... can be made into a book :-) good work dragon328.... bravo

Posted by speakup > 2024-07-11 22:04 | Report Abuse

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Posted by VincentTang > 2024-07-12 10:31 | Report Abuse

FPHB is the next multibagger stock. Go read its quarter report then you will know. All its financial figures look super good on last quarter result.

Posted by dragon328 > 2024-07-12 11:26 | Report Abuse

Constructive comments are welcome.

One comment I received privately was the projected earnings from IOI Central Boulevard. I project annual earnings of RM700 m from IOICB from FY2026, based on projected gross rental income of SGD206 million a year, which in turn was calculated from an assumed rental rate of SGD14.00 psf x 1.29 million sf x 95% x 12 months. That assumed only 95% of total 1.29 million sf of NLA is to be leased out, and hence leaves a 5% room for upside later. Furthermore, the average rental rate may have room for further upside for inflation adjustments in later years as well as for scarcity premium as there is no more major re-development site in Singapore CBD after Shenton House is won by CEO Mr. Lee.

The overhead cost for maintaining IOICB should be very low at less than 5% of gross rental income for such a big office tower.

The main cost will be electricity bill. Assuming 10% of total NLA is common area where IOICB needs to provide air-conditioning and lighting for, electricity bills may come out to 1.29 million sf x 10% x (7.5 hp /1000 sf) x 0.745 kW/hp x 16h x 365 days x SGD300/MWh = SGD1.26 million per year, rounded up to SGD1.5 million for lighting. (assumptions: 10% of NLA is common area, 7.5 hp of air-conditioning is required for every 1,000 sf of space, average electricity price of SGD300/MWh).

Other maintenance costs will be for maintenance of lifts & elevators, main facets, external paintings, quick rents and licensing fees payables to local authorities, bomba checks etc. These may not add up to more than SGD10 million a year, I estimate.

Hence I see that my assumed net earnings of SGD200 million a year from IOICB should be achievable.

Posted by carthago > 2024-07-12 12:07 | Report Abuse

Well researched and thought out. Kudos