the moving out phase will result in slight reduction to EPS considering Sunway Pyramid contribute a large portion of their revenue. maybe for a few quarters until new tenants move in
if is caused by AEON closure, then the impact is as follows :- sunway pyramid mall gross revenue = 84millions aeon contributed 4.8% of spm gross revenue = 84m x 4.8% = 4m overall impact to sunreit = 4m/166m = 2.4% damage today's share price drop -2.68% more or less absorb ?
SMC book value at around 330m with rental 7%. Disposed to Sunway at 420m. Sunreit use it to settle part of 6 properties purchase from EPF which estimate rental return of 8% per year. I think when these 6 properties purchases complete in Q4. Sunreit's DPU will improve instead of bad effect
As hospital base on EBITDA for IPO value. Own a property will improve EBITDA since Interest, Depreciation and Tax are excluded in calculation of IPO value. So, I would think main reason for disposal of SMC building back to Sunway so that SMC has a real assets that will improve SMC’s EBITDA which in turn fetch higher IPO value in 2026. Estimate IPO price for SMC is around 20 x EBITDA.
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lotuseater
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Posted by lotuseater > 2023-08-01 10:37 | Report Abuse
The current situation present a good opportunity to purchase the stock.