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Will this guy follow the rest and move up? Result had been good.....just that hotels not yet on sale yet....
To me, this guy had been very disappointing but had no choice but to hold on to it for dividend and hopefully wait for the long awaited sale of the hotels and office.........
The Australian hotel industry is set for another year of big deals with the future of at least five portfolios to be decided.
The biggest play will be the sale of the Commonwealth Property Hotel Fund, which is now marketing its $400 million-plus portfolio of five-star hotels to global investors.
The fund owns Marriott properties in Sydney, Melbourne and Brisbane, and will aim to sell the hotels, either as a portfolio or individually, in the first half of 2012.
Around 50 buyers globally have already registered their interest in the portfolio as agents Jones Lang LaSalle Hotels run an international sales campaign.
Fund manager John van der Wallen said the domestic leisure market was soft but the hotels relied on the much stronger corporate travel market.
The prize is the Sydney Harbour Marriott which has 563 rooms – and the potential to add more value through minor renovations.
It has undergone a $20 million plus refurbishment and Mr van der Walllen said that the performance of the Sydney market was starting to rival Brisbane’s market, where room supply was very tight.
The Brisbane Marriott has 267 rooms and another 23 rooms and banquet space could be added. The portfolio also includes the 186-room Melbourne Marriott which underwent a $10 million-plus refurbishment.
Two major deals are outstanding from last year.
Singapore group Ascendas is understood to have pulled back from plans to pick up three hotels – in Melbourne, Adelaide and Sydney – from Stamford Land Corporation in a $316 million deal. This could leave Stamford looking for a new suitor.
Ascendas partly backed Accor’s purchase of the $327 million Mirvac Hotels portfolio. Mirvac has been left to sell a half-stake in the Travelodge Group. Ascendas is not likely to pursue this but other buyers are keen on this $120 million stake.
The Singaporean group is among several that are mulling listing a hospitality property trust that may include Australian properties. Ascendas had said “we are constantly looking for ways to maximise our investments and [a] REIT is just one of the options”.
The future of listed hotel and development group Thakral Holdings, which owns a portfolio of seven hotels is also to be resolved.
In December, global giant Brookfield Asset Management swooped on a crucial loan to the family that controls a 40 per cent stake in the listed group.
Funds backed by retail and wealthy individuals could also sell hotel portfolios this year.
The Abacus Hospitality Fund, which owns $173 million of hotels in Australia and New Zealand, plans to update investors in March on its future.
The Toga Accommodation Fund, which owns about $320 million of hotels in Australia and Europe, told investors last October that it was focused on creating a “liquidity event”.
One year on, but the share price is still unmoved.
Business Times - 11 Jan 2011
Hock Lock Siew
Stamford Land back on investors' radar screens
By VEN SREENIVASAN
THE local market can be a tough proposition for companies with businesses, assets and earnings located largely offshore. This can be so even if they are Singapore-owned. The result can be depressed valuations, thin share trading volumes and scant analyst coverage, despite good earnings and strong management.
This is a dilemma that mainboard-listed property group Stamford Land has long grappled with. But it shouldn't have had to do so.
Stamford Land is a hotel and property group with assets primarily located in Australia. Its hotel portfolio comprises eight five-star outfits located in Sydney, Brisbane, Adelaide, Melbourne and Auckland. Six are on freehold plots and all sit on prime city locations.
The company also has several property assets, the most valuable of which is Dynons Plaza in Perth.
In Sydney - where three of its hotels are located - it is currently selling the final 10 per cent of its exclusive Stamford Residences & Reynell Terraces luxury apartments at The Rocks. Under Australian accounting rules, profit can only be recognised upon 100 per cent sales, which should happen this year.
In Singapore, it owns a floor at the Southpoint building, where its head office is located.
Stamford Land reported interim profit of some $44.3 million for the six months ended September 2010, up four-fold from $10.3 million a year earlier. In FY2009/10, it posted a full-year profit of $24.5 million.
Yet the only investment house that has covered Stamford Land in the past is Lim & Tan Securities. In its latest report last year, Lim & Tan maintained a 'buy' on the company, citing its understated asset valuations. But last week, CIMB called Stamford Land 'a quality asset play' which was 'under-owned simply because of the lack of massive investment and media coverage'.
As at end-September 2010, the company's net asset value (NAV) was stated as 53 cents. Its actual value could be much more.
Stamford Land has been steadily depreciating its Australian hotel assets. And it has never revalued them.
In Australia, hotels are generally valued at about seven to nine times Ebitda (earnings before interest, taxes, depreciation and amortisation). However, Stamford Land does not disclose the Ebitda of this portfolio, making it difficult to value.
But in 2008, the company rejected an unsolicited offer from an undisclosed international buyer for its eight hotels for A$850 million. At the time, the portfolio was carried in its books at A$382 million. The difference - A$468 million - gives a glimpse at the remarkable intrinsic value of this portfolio.
Spread over some 863 million shares, and converted to Singapore dollars, this translates into a hidden NAV of more than 60 Singapore cents per share.
That was almost three years ago. Since then, hotel room supply in Australia has hardly grown, largely due to the conservative financing bias of Australian banks.
But the potential for realisable value of these assets may have just risen somewhat with the company's recent disclosure that it might redevelop some of its hotel properties.
Responding to Australian media reports, Stamford Land last month confirmed plans to redevelop its freehold hotel property in North Ryde, adjacent to Macquarie University and the train station. The 22,433 square foot site has a plot ratio of 2.5, enough for 625 apartments of about 75 square metres each. The net saleable area of 48,000 sq m at A$8,000 per sq m would enable the company to rake in some A$380 million (S$489 million), before development costs.
The company could also be looking at redeveloping at least two other properties: its 105-room Stamford at Circular Quay in Sydney, and its 252-room Stamford Plaza hotel in Brisbane. Both these properties sit on prime sites, and redevelopment could start once the leases are renegotiated.
Over in Perth, it could sell Dynons Plaza at the right price. Market valuations for this property vary between A$135 million and A$150 million. But given the handsome yield, it may be in no hurry.
Meanwhile, the strong earnings flow so far suggests that Stamford Land's shareholders are looking at potentially attractive dividends this year.
The recent stirring of its stock price suggests that it may finally have clawed its way onto investors' radar screens. But more interestingly, filings show that the company's executive chairman and controlling shareholder, Ow Chio Kiat, has been buying up significant amount of Stamford Land shares - a sure vote of confidence in his company's prospects.
Hock Lock Siew
Stamford Land back on investors' radar screens
By VEN SREENIVASAN
THE local market can be a tough proposition for companies with businesses, assets and earnings located largely offshore. This can be so even if they are Singapore-owned. The result can be depressed valuations, thin share trading volumes and scant analyst coverage, despite good earnings and strong management.
This is a dilemma that mainboard-listed property group Stamford Land has long grappled with. But it shouldn't have had to do so.
Stamford Land is a hotel and property group with assets primarily located in Australia. Its hotel portfolio comprises eight five-star outfits located in Sydney, Brisbane, Adelaide, Melbourne and Auckland. Six are on freehold plots and all sit on prime city locations.
The company also has several property assets, the most valuable of which is Dynons Plaza in Perth.
In Sydney - where three of its hotels are located - it is currently selling the final 10 per cent of its exclusive Stamford Residences & Reynell Terraces luxury apartments at The Rocks. Under Australian accounting rules, profit can only be recognised upon 100 per cent sales, which should happen this year.
In Singapore, it owns a floor at the Southpoint building, where its head office is located.
Stamford Land reported interim profit of some $44.3 million for the six months ended September 2010, up four-fold from $10.3 million a year earlier. In FY2009/10, it posted a full-year profit of $24.5 million.
Yet the only investment house that has covered Stamford Land in the past is Lim & Tan Securities. In its latest report last year, Lim & Tan maintained a 'buy' on the company, citing its understated asset valuations. But last week, CIMB called Stamford Land 'a quality asset play' which was 'under-owned simply because of the lack of massive investment and media coverage'.
As at end-September 2010, the company's net asset value (NAV) was stated as 53 cents. Its actual value could be much more.
Stamford Land has been steadily depreciating its Australian hotel assets. And it has never revalued them.
In Australia, hotels are generally valued at about seven to nine times Ebitda (earnings before interest, taxes, depreciation and amortisation). However, Stamford Land does not disclose the Ebitda of this portfolio, making it difficult to value.
But in 2008, the company rejected an unsolicited offer from an undisclosed international buyer for its eight hotels for A$850 million. At the time, the portfolio was carried in its books at A$382 million. The difference - A$468 million - gives a glimpse at the remarkable intrinsic value of this portfolio.
Spread over some 863 million shares, and converted to Singapore dollars, this translates into a hidden NAV of more than 60 Singapore cents per share.
That was almost three years ago. Since then, hotel room supply in Australia has hardly grown, largely due to the conservative financing bias of Australian banks.
But the potential for realisable value of these assets may have just risen somewhat with the company's recent disclosure that it might redevelop some of its hotel properties.
Responding to Australian media reports, Stamford Land last month confirmed plans to redevelop its freehold hotel property in North Ryde, adjacent to Macquarie University and the train station. The 22,433 square foot site has a plot ratio of 2.5, enough for 625 apartments of about 75 square metres each. The net saleable area of 48,000 sq m at A$8,000 per sq m would enable the company to rake in some A$380 million (S$489 million), before development costs.
The company could also be looking at redeveloping at least two other properties: its 105-room Stamford at Circular Quay in Sydney, and its 252-room Stamford Plaza hotel in Brisbane. Both these properties sit on prime sites, and redevelopment could start once the leases are renegotiated.
Over in Perth, it could sell Dynons Plaza at the right price. Market valuations for this property vary between A$135 million and A$150 million. But given the handsome yield, it may be in no hurry.
Meanwhile, the strong earnings flow so far suggests that Stamford Land's shareholders are looking at potentially attractive dividends this year.
The recent stirring of its stock price suggests that it may finally have clawed its way onto investors' radar screens. But more interestingly, filings show that the company's executive chairman and controlling shareholder, Ow Chio Kiat, has been buying up significant amount of Stamford Land shares - a sure vote of confidence in his company's prospects.
don't know....if go through, the profit is only 24 cents/share......
the sydney residential is only about slightly more than 40 million profit......should not be able to move up the price......
This counter still not moving yet. There is one day ganna whack down to 46 cents sia, dunno what happen.
Secondly, is the sale of the 3 hotels confirmed?
sentiment is very good now.....time to buy more of stamford land.......
sale of 3 hotels, will there be sale of another 5 hotels and the office.....
2 redevelopment hotel sites..............................................................
recognition of residential projects....................................................
If the sale is sucessful then the revenue is around 45 cents per share. Hopefully some cash return to shareholder.
Stamford Enters Into MOU For The Proposed Sale And Lease-Back Of Three Of Stamford's Hotel Properties
http://stamfordland.listedcompany.com/news.html/id/271042
Will the buyer go ahead?
I buy some lots today.....waiting for the special dividend if any but please don't crash again....
Unlike other counters, chairman has showed good support. I am wonder why there are not much share buy back activities during the market collapsed recently. It seems others are sleeping.
Feel much better....if DOW up, tomorrow I buy more.....
serious ( Date: 15-Aug-2011 19:56) Posted:
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Chairman bot 349 lots at 0.50 on 12 Aug.
Holding is easy to do... one just hold it.
But buying is harder to do...
because one is afraid it will go down somemore...
jamesng ( Date: 14-Aug-2011 21:32) Posted:
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I am betting more on this gem but I think I need to hold longer....
will ock buy at this level since he will buy when SL falls below $0.60
No last minute buy up today for the dividend.
I think that is quite confirm....
I am also waiting for the office in perth to be sold.....and also more of stamford residence in Auckland to be sold and recognized....it is a matter of time and if not yet time, just collect the rental.....
Also waiting for the redevelopment to take sold by this year or early next year.....
Any sale of hotels or reit is additional but I do hope OCK can unlock this as well...
Quite a no brainer to acquire as much as possible.....
SL will receive the cash flow of about A$230 millions in August/ Sept/Oct , and the next dividendt payout ( If available ) will only be in Nov. so SL has the money to pay. One cents will cost SL only 8.6 millions , so not much problen to have few cents as dividend.