26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD 26/09/2012 [IGBREIT] - DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS):DEALINGS OUTSIDE CLOSED PERIOD
Post the listing of IGB REIT which will raise a total of RM4612.6m, from 3,400m shares in IGB REIT and the balance of RM1,212.6m cash, will offer investors the opportunity to own IGB‟s other assets, i.e. 2.4m sf of office space(The Gardens North & South Towers, Menara Tan & Tan, Centrepoint, etc), 3000 rooms of hotels(The Gardens hotel, Boulevard Hotel, Cititel Mid Valley, Renaissance hotel, etc) and 1800 acres of land for almost next to nothing. We estimate owning IGB shares now will give the shareholders RM2.43 in total, with RM1.73 from IGB REIT and RM0.70 in cash.
RM0.15 for IGB’s other assets (estimated value of RM2.30 per share)? We estimate IGB‟s other assets should worth more than RM3.0bn at market value or about RM2.30 per share. True, the quality of earnings might not be as good going forward, but the Group does have the asset size to monetize the rest of the assets i.e. hotels and offices should the market allow it. Nonetheless, the value of these assets should not deserve such a steep discount and the value in our view, and should converge to the fair value closer to the distribution in-specie by Krisassets, which is slated to take place a month after the floatation of IGB REIT.
Fair value RM3.55. Using Sunway as an example (owns 36.9% of Sunway REIT), which the stake in Sunway REIT is now making half of the current cap, is trading at 25% of the consensus SOTP fair value, we estimate the fair value for IGB to be RM3.55 or 38% upside (attaching similar 25% discount to SOTP) post the listing of IGB REIT and distribution-in specie by KrisAssets. The back of the envelope calculation gives us SOTP‟s value of RM4.73 (assumptions: RM2.43 from IGB REIT, RM1.10 from offices (2.35m sf NLA at RM700psf), RM0.80 from hotels (3000 rooms at RM400k per room) and RM0.40 from development land (RM600m, book value). Separately, we estimate KrisAsset‟s fair value to be RM10.88 or 18% upside after the distribution of IGB REIT shares and cash. Interestingly, we also note that IGB has bought back 18m shares from the announcement of IGB REIT.
Post the listing of IGB REIT which will raise a total of RM4612.6m, from 3,400m shares in IGB REIT and the balance of RM1,212.6m cash, will offer investors the opportunity to own IGB‟s other assets, i.e. 2.4m sf of office space(The Gardens North & South Towers, Menara Tan & Tan, Centrepoint, etc), 3000 rooms of hotels(The Gardens hotel, Boulevard Hotel, Cititel Mid Valley, Renaissance hotel, etc) and 1800 acres of land for almost next to nothing. We estimate owning IGB shares now will give the shareholders RM2.43 in total, with RM1.73 from IGB REIT and RM0.70 in cash.
RM0.15 for IGB’s other assets (estimated value of RM2.30 per share)? We estimate IGB‟s other assets should worth more than RM3.0bn at market value or about RM2.30 per share. True, the quality of earnings might not be as good going forward, but the Group does have the asset size to monetize the rest of the assets i.e. hotels and offices should the market allow it. Nonetheless, the value of these assets should not deserve such a steep discount and the value in our view, and should converge to the fair value closer to the distribution in-specie by Krisassets, which is slated to take place a month after the floatation of IGB REIT.
Fair value RM3.55. Using Sunway as an example (owns 36.9% of Sunway REIT), which the stake in Sunway REIT is now making half of the current cap, is trading at 25% of the consensus SOTP fair value, we estimate the fair value for IGB to be RM3.55 or 38% upside (attaching similar 25% discount to SOTP) post the listing of IGB REIT and distribution-in specie by KrisAssets. The back of the envelope calculation gives us SOTP‟s value of RM4.73 (assumptions: RM2.43 from IGB REIT, RM1.10 from offices (2.35m sf NLA at RM700psf), RM0.80 from hotels (3000 rooms at RM400k per room) and RM0.40 from development land (RM600m, book value). Separately, we estimate KrisAsset‟s fair value to be RM10.88 or 18% upside after the distribution of IGB REIT shares and cash. Interestingly, we also note that IGB has bought back 18m shares from the announcement of IGB REIT.
Investor also can consider put their eggs in REITs stocks such as IGB REIT which is new in KLCI arena and the UPWARD possibilities in HIGH compared with it's peer that already grew as much as 30%..
Juggernault : you can refer to sunreit and pavreit dividend, all of they can pay dividend every quarter (4 times a year).
Now, the IGB price drop abit because some people got this share from holding KASSET share, this people not appreciate REIT, so simply sold it out in large volume.
Actually at this current time, GE coming soon, new development will get difficult because gov authority approval. So the best idea with Properties, is buy properties REIT, earn profit, dividen from the tenancy rental.
Other REIT like Sunreit, Pavreit and Stareit most rise more than 40%. Good properties like Midvalley and The Garden sure earn alot from tenancy, and appreciate since Klang valley will get more and more people, somemore KL ecocity by SPsetia in planning.
For future plan IGBreit will include Southkeymall at very strategic area, Iskandar, sure earn alot Singaporean and JB people money ;)
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necro
4,726 posts
Posted by necro > 2012-09-21 09:11 | Report Abuse
Im the 1 coment in this STOCK!!!
still tido investor huh??
10AM can go HI???