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.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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.