2nd Liner Prop Stocks

Stamford Land pleasantly surprised with a higher dividend payout of 4cts/share (2 cts ordinary and 2 cts special). For Fy10, it was 2+1 = 3cts/share.

Dividend yield = 4 divided by 55 cents is 7.3%. Well done, Mr OW!

In this thread, I discover a no. of value gems from the property sector. They are making tens of millions of profit a year, have very high RNAVs and are awaiting for triggers. I like STAMFORD, HIAP HOE, SING HOLDINGS & OXLEY. What do forumers say?

Hi fellow forummers of Nextinsight,
I am also a supporter of Stamford Land.
Have wrote an update of some of my opinions on the latest results on my blog.
sustainable-income-sg.blogspot.com/
Cheers!
 
 

Stamford Land: Business as usual (BUY, S$0.55, TP S$0.73)
Goh Han Peng (6232 3893, hanpeng.goh@sg.oskgroup.com)
Terence Wong, CFA (6232 3896, terence.wong@sg.oskgroup.co
 
We recently met up with management and came away with the following takeaways.
1) The group’s Australian hotels continue to benefit from strong domestic demand with occupancies hovering above 80%, while room rates have inched up in tandem.
2) Management allowed the MOU for the sale-and-leaseback of three of its hotels to lapse recently as it wanted to maintain flexibility to pursue other monetisation options.
3) Revenue of its 87%-sold development project in Sydney was booked upon completion in 3QFY12, bringing in S$195m of proceeds. Management continues to pursue re-development opportunities for selected hotel sites and is hopeful of obtaining approval to convert its North Ryde hotel into a residential project by mid-2012.
4) Property investment continues to perform well, underpinned by lease income in excess of A$9m p.a. for its Perth office property.
Hidden real estate value within hotel portfolio. STL acquired its hotels in the mid-1990s at depressed prices when the Japanese corporates beat a retreat from Asia to repatriate funds back to Japan. Today, its hotels are sitting on substantial surplus of S$365m, or $0.42/share, on our estimates. Management is seeking to further enhance land value through re-development opportunities, beginning with the conversion of its North Ryde hotel in Sydney.
Buy maintained. We revise our FY12-13 earnings by -24% and +6% respectively, to factor in slower residential sales going forward as the remaining units in its Sydney project are larger units with high absolute quantum of A$10m each. Maintain BUY with a lower TP of $0.73, pegged to 35% discount to RNAV (vs 30% earlier).

Hello sustainableinvestor : I was amazed to read in yr blog that you grew yr $20K capital to $300 K between 2004 and currently. Congrats! U are Singapore's Buffett. Are you real or not? Can you give us more meat to your story? 
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[sustainableinvestor 26-05-2012]:

Hi fellow forummers of Nextinsight,
I am also a supporter of Stamford Land.
Have wrote an update of some of my opinions on the latest results on my blog.
sustainable-income-sg.blogspot.com/
Cheers!
 
 

Hi yeh, I am not Buffett standard. Still long way to go. The time period is about 9 years. It is not over a short time. My portfolio increase also has about $40k which were new capital reinvested from savings. I had my fair share of losses and gains (gains were much more, luckily). Nevertheless, I do agree I started doing all these quite young. Do take a look at one of my fellow blogger INVESTMENT MOATS, Drizzts' article: www.investmentmoats.com/investment-advic...nt-to-save-too-much/ It is not a matter of getting rich overnight. The average guy just only needs to SUSTAIN a 8% yield to grow a big portfolio. I am still learning how to do that.