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101-120 of 196
Shortists full force...
waiting to scoop durian at 400
Buy a bit at $0.435 for possible rebound.....
sellers got insider news, coming out bad news ??
yau123 ( Date: 29-Oct-2024 09:13) Posted:
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The sellers non stop one!
Think end of the year or before CNY
kye_lin ( Date: 28-Oct-2024 16:46) Posted:
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Nibble some already..
Waiting for next wave...
Waiting for next wave...
Think can collect a bit by bit..
Ready Next run ?.
Dyod
Ready Next run ?.
Dyod
Looks like the hype has now subsided
SmallSmall ( Date: 25-Oct-2024 15:33) Posted:
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Rebound a bit.....off the low of $0.47. Now $0.495
Not yet ripe still hard and green....wait for few more weeks lah...
kye_lin ( Date: 24-Oct-2024 09:18) Posted:
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Time to pick durians.... last chance..
Like this Mr Superstarrup can know what is your thinking of this company NAV ?
Thanks 😊
That day I did a simple back of envelope analysis (or confirmation / interpretation analysis), taking reference from the Annual Valuation for their properties dated 28 Feb 2024, the financial statements as at 31 Dec 2023 and 30 June 2024 + the latest Annual report
The subject Australia Portfolio sold to GIC comprises a total of 7 properties, and having a valuation of AUD $1.4B (say SGD 1.23B) as at 31 Dec 2023
[Note that the 8th Australia property is not part of the Portfolio sold to GIC. It is under another entity.]
Wee Hur recorded its investment in this GIC co-owned portfolio in its statement as Investment in Joint Ventures (as illustrated and explained in the Annual Report, Note 23)
with a Value of SGD $355.7m based on 50.1% of the Group' s Equity Interest in the Joint Venture which has a Net Asset of SGD 705m as at 31 Dec 2023.
Take note this net Asset does not refer to the valuation of the 7 properties in the portfolio. Instead, it is the Equity at the portfolio level, adjusted for changes in properties valuation, profit / losses etc. You can also take reference from the financial result as at 30 Jun 2024 - the financial notes.
We also know the Debt at Australia Portfolio Level (current and non current liabilities) = SGD 601m, figure taken from the Annual Report too.
Conclusion:
The GIC co-owned Australia Portfolio indeed has a huge debt amount, where the valuation of the 7 properties is AUD $1.4B (say SGD $1.23B) versus Net Asset of the Portfolio at SGD 705m, both as at 31 Dec 2023
The debt at the Australia Portfolio is SGD 601m as at 31 Dec 2023
Wee Hur NAV as at 31 Dec 2023 is 66c
Wee Hur NAV as at 30 Jun 2024 is 73c
Based on Wee Hur 30 Jun 2024 result, the Equity Interest in the Joint Venture, i.e. the GIC co-owned Australia Portfolio has increased to SGD $403m
50.1% stake = SGD 403m
100% stake = SGD 804m
= > SGD 804m is the Net Asset of the Australia Portfolio (Total Equity)
Australia Financial Review quoted AUD $1.6B Gross Price = say SGD 1.4B Gross Price
In Finance, Gross Price would include all the liabilities of the Business / Portfolio
Looking back, the debt level at the Australia Portfolio is SGD 601m as at 31 Dec 2023
So Australia Financial Review quoted price tag of AUD $1.6B Gross Price (SGD 1.4B Gross Price) is quite in line with the 100% stake Net Asset Value of the Australia Portfolio at SGD 804m as at 30 Jun 2024, assuming same debt level of SGD 601m
Assuming if the sale goes through, what is the impact on the NAV for Wee Hur ?
It is anyone' s interpretation
- - - - - - - -
Gross Purchase Price and Equity Value Concept
Portion of the 2022 Sale Details as announced by Wee Hur, extracted for easy reference on the Gross Purchase Price concept, Equity Value concept and how much GIC actually fork out for the 49.9% stake
" 5. PRINCIPAL TERMS OF THE PROPOSED DISPOSAL 5.1. Consideration Under the terms of the Unit Sale Agreement, the gross purchase price of the Sale Units is A$567,862,000, being the 49.9% of the gross asset value of A$1,138,000,000 of the Properties (the &ldquo Gross Purchase Price&rdquo ). The Gross Purchase Price was arrived at after arm&rsquo s length negotiations on a willing seller willing buyer basis. The estimated consideration in cash shall be A$275,198,500, being the 49.9% of the equity value of A$551,500,000 of the Master Trust (the &ldquo Estimated Consideration&rdquo ), taking into account first mortgage indebtedness against the Properties, and subject to any (i) net assets adjustments on respective settlement dates, (ii) 3 amounts to be deposited in escrow accounts as established under the Unit Sale Agreement, (iii) withholding amounts by the Purchaser as required under any relevant law, (iv) agreed purchase price adjustments mechanism under the Unit Sale Agreement (the &ldquo Relevant Adjustments&rdquo ). "
The subject Australia Portfolio sold to GIC comprises a total of 7 properties, and having a valuation of AUD $1.4B (say SGD 1.23B) as at 31 Dec 2023
[Note that the 8th Australia property is not part of the Portfolio sold to GIC. It is under another entity.]
Wee Hur recorded its investment in this GIC co-owned portfolio in its statement as Investment in Joint Ventures (as illustrated and explained in the Annual Report, Note 23)
with a Value of SGD $355.7m based on 50.1% of the Group' s Equity Interest in the Joint Venture which has a Net Asset of SGD 705m as at 31 Dec 2023.
Take note this net Asset does not refer to the valuation of the 7 properties in the portfolio. Instead, it is the Equity at the portfolio level, adjusted for changes in properties valuation, profit / losses etc. You can also take reference from the financial result as at 30 Jun 2024 - the financial notes.
We also know the Debt at Australia Portfolio Level (current and non current liabilities) = SGD 601m, figure taken from the Annual Report too.
Conclusion:
The GIC co-owned Australia Portfolio indeed has a huge debt amount, where the valuation of the 7 properties is AUD $1.4B (say SGD $1.23B) versus Net Asset of the Portfolio at SGD 705m, both as at 31 Dec 2023
The debt at the Australia Portfolio is SGD 601m as at 31 Dec 2023
Wee Hur NAV as at 31 Dec 2023 is 66c
Wee Hur NAV as at 30 Jun 2024 is 73c
Based on Wee Hur 30 Jun 2024 result, the Equity Interest in the Joint Venture, i.e. the GIC co-owned Australia Portfolio has increased to SGD $403m
50.1% stake = SGD 403m
100% stake = SGD 804m
= > SGD 804m is the Net Asset of the Australia Portfolio (Total Equity)
Australia Financial Review quoted AUD $1.6B Gross Price = say SGD 1.4B Gross Price
In Finance, Gross Price would include all the liabilities of the Business / Portfolio
Looking back, the debt level at the Australia Portfolio is SGD 601m as at 31 Dec 2023
So Australia Financial Review quoted price tag of AUD $1.6B Gross Price (SGD 1.4B Gross Price) is quite in line with the 100% stake Net Asset Value of the Australia Portfolio at SGD 804m as at 30 Jun 2024, assuming same debt level of SGD 601m
Assuming if the sale goes through, what is the impact on the NAV for Wee Hur ?
It is anyone' s interpretation
- - - - - - - -
Gross Purchase Price and Equity Value Concept
Portion of the 2022 Sale Details as announced by Wee Hur, extracted for easy reference on the Gross Purchase Price concept, Equity Value concept and how much GIC actually fork out for the 49.9% stake
" 5. PRINCIPAL TERMS OF THE PROPOSED DISPOSAL 5.1. Consideration Under the terms of the Unit Sale Agreement, the gross purchase price of the Sale Units is A$567,862,000, being the 49.9% of the gross asset value of A$1,138,000,000 of the Properties (the &ldquo Gross Purchase Price&rdquo ). The Gross Purchase Price was arrived at after arm&rsquo s length negotiations on a willing seller willing buyer basis. The estimated consideration in cash shall be A$275,198,500, being the 49.9% of the equity value of A$551,500,000 of the Master Trust (the &ldquo Estimated Consideration&rdquo ), taking into account first mortgage indebtedness against the Properties, and subject to any (i) net assets adjustments on respective settlement dates, (ii) 3 amounts to be deposited in escrow accounts as established under the Unit Sale Agreement, (iii) withholding amounts by the Purchaser as required under any relevant law, (iv) agreed purchase price adjustments mechanism under the Unit Sale Agreement (the &ldquo Relevant Adjustments&rdquo ). "
Uncovering_Value ( Date: 23-Oct-2024 11:23) Posted:
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Thanks for the feedback.
Apologies if the article was unclear. However, the $601m in debt attributable to the JV only was sourced from page 148 of Wee Hurs FY23 annual report, in which the investment property value of the JV (at 100%) was $1,262m.
On the point of the A$350m trust fund, the 2017 annual report indicates that this is the total fund size (i.e. 100% value) and comprises three under-construction assets as follows:
As these assets were progressively constructed and more assets added, the loan drawdown would have increased as well.
Apologies if the article was unclear. However, the $601m in debt attributable to the JV only was sourced from page 148 of Wee Hurs FY23 annual report, in which the investment property value of the JV (at 100%) was $1,262m.
On the point of the A$350m trust fund, the 2017 annual report indicates that this is the total fund size (i.e. 100% value) and comprises three under-construction assets as follows:
- UniLodge@ParkCentral &ndash 1,578 beds
- Gray Street, Adelaide &ndash 772 beds
- A&rsquo Beckett Street, Melbourne &ndash 900-beds
As these assets were progressively constructed and more assets added, the loan drawdown would have increased as well.
SmallSmall ( Date: 23-Oct-2024 10:43) Posted:
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The concept of net asset value - What is Wee Hur&rsquo s stake in the student accommodation JV really worth?
Since the announcement on the Australian Financial Review (AFR) of the potential sale of Wee Hur&rsquo s student housing asset to Greystar, much has been written on the potential size of the deal and the implications for Wee Hur. In line with the anticipation, Wee Hur&rsquo s share price has also surged by 33% from 36 cents before the news to 48 cents as of 22 Oct, a short span of 7 days.
But is this too good to be true, or really good?
Back to Basics &ndash the concept of net asset value
News sites typically report asset sales on a gross asset value basis. In Wee Hur&rsquo s case, the reported deal size of the student housing assets were up to A$1.6b (S$1.4b). But this grossly overstates the asset value as it neglects debt taken to fund the asset, a scenario that wouldn&rsquo t be unfamiliar to most homeowners.
Based on Wee Hur&rsquo s FY2023 Annual Report, the total assets of this JV was $1,306m, largely comprising investment properties at $1,262m. With total liabilities (bank loans mainly) of $601m, the equity value of this JV works out to $705m. Based on Wee Hur&rsquo s effective stake of 50.1%, this works out to $353m. Based on outstanding shares of 919m, the value of Wee Hur&rsquo s interest in the PBSA JV accounts to 38.4 cents per share (out of 66 cents per share NAV as of FY23).
Fast forward to the company&rsquo s 1HFY24 results, some of you might have noticed the c. 14% jump in investment in JV value from c. $353m as at FY23 to $403m as at 1HFY24. The reason given by the company for this increase was &ldquo higher fair value gains on investment properties recognised by an associate and joint venture in Australia&rdquo . Based on internal workings, at this level of equity value, assuming bank loans were unchanged, it would have implied an investment property valuation of c. $1.36b on a 100% basis. This would be close to the A$1.6b (based on current exchange rates of 1SGD=1.14AUD) reflected in the gross asset value reported by AFR. In other words, any potential upside in valuation might have already been reflected in the 73 cents Net Asset Value reported by the company as of 1HFY24.
Stake retention reveals no change in stake
In the article, it appears that Wee Hur is looking to &ldquo retain&rdquo an interest in the JV. This might imply that the JV remains, with GIC simply selling out its stake to Greystar. This wouldn&rsquo t change anything beyond the fact that Wee Hur is now in a JV with Greystar instead of GIC. In this scenario, a special dividend to reward shareholders from the capital gains is unlikely as this is still &ldquo unrealized&rdquo FV gains sitting on the company&rsquo s books.
Broader implications of GIC&rsquo s exit
GIC&rsquo s mandate is to preserve and enhance the international purchasing power of Singapore&rsquo s reserves. Its investments must aim to achieve good long-term returns. In Feb 22, GIC acquired its stake in the PBSA from Wee Hur at a valuation of A$1.14b. Based on a higher valuation of A$1.6b in 2024, this works out to an uplift in valuation of almost A$500m. Based on GIC&rsquo s stake, the gain would have been about A$250m in a mere two years, a pretty decent gain indeed. But with the GIC looking to exit, this leaves one wondering if further good returns from these assets is likely.
Based on a portfolio valuation of A$1.6b, the net asset value per share of Wee Hur&rsquo s stake in the PBSA would probably be closer to 43.9 cents. At the current price of c. 50 cents and book value of 73 cents (P/B of 0.7x), one might need more convincing that further good returns is likely.
Still a novice here trying to learn the ropes of investing. Happy to have your guidance and any differing views so we could learn from each other. Drop me a message if you&rsquo d like the internal workings for 1HFY24 JV values for the PBSA.
Happy investing and stay safe. Cheers!
Since the announcement on the Australian Financial Review (AFR) of the potential sale of Wee Hur&rsquo s student housing asset to Greystar, much has been written on the potential size of the deal and the implications for Wee Hur. In line with the anticipation, Wee Hur&rsquo s share price has also surged by 33% from 36 cents before the news to 48 cents as of 22 Oct, a short span of 7 days.
But is this too good to be true, or really good?
Back to Basics &ndash the concept of net asset value
News sites typically report asset sales on a gross asset value basis. In Wee Hur&rsquo s case, the reported deal size of the student housing assets were up to A$1.6b (S$1.4b). But this grossly overstates the asset value as it neglects debt taken to fund the asset, a scenario that wouldn&rsquo t be unfamiliar to most homeowners.
Based on Wee Hur&rsquo s FY2023 Annual Report, the total assets of this JV was $1,306m, largely comprising investment properties at $1,262m. With total liabilities (bank loans mainly) of $601m, the equity value of this JV works out to $705m. Based on Wee Hur&rsquo s effective stake of 50.1%, this works out to $353m. Based on outstanding shares of 919m, the value of Wee Hur&rsquo s interest in the PBSA JV accounts to 38.4 cents per share (out of 66 cents per share NAV as of FY23).
Fast forward to the company&rsquo s 1HFY24 results, some of you might have noticed the c. 14% jump in investment in JV value from c. $353m as at FY23 to $403m as at 1HFY24. The reason given by the company for this increase was &ldquo higher fair value gains on investment properties recognised by an associate and joint venture in Australia&rdquo . Based on internal workings, at this level of equity value, assuming bank loans were unchanged, it would have implied an investment property valuation of c. $1.36b on a 100% basis. This would be close to the A$1.6b (based on current exchange rates of 1SGD=1.14AUD) reflected in the gross asset value reported by AFR. In other words, any potential upside in valuation might have already been reflected in the 73 cents Net Asset Value reported by the company as of 1HFY24.
Stake retention reveals no change in stake
In the article, it appears that Wee Hur is looking to &ldquo retain&rdquo an interest in the JV. This might imply that the JV remains, with GIC simply selling out its stake to Greystar. This wouldn&rsquo t change anything beyond the fact that Wee Hur is now in a JV with Greystar instead of GIC. In this scenario, a special dividend to reward shareholders from the capital gains is unlikely as this is still &ldquo unrealized&rdquo FV gains sitting on the company&rsquo s books.
Broader implications of GIC&rsquo s exit
GIC&rsquo s mandate is to preserve and enhance the international purchasing power of Singapore&rsquo s reserves. Its investments must aim to achieve good long-term returns. In Feb 22, GIC acquired its stake in the PBSA from Wee Hur at a valuation of A$1.14b. Based on a higher valuation of A$1.6b in 2024, this works out to an uplift in valuation of almost A$500m. Based on GIC&rsquo s stake, the gain would have been about A$250m in a mere two years, a pretty decent gain indeed. But with the GIC looking to exit, this leaves one wondering if further good returns from these assets is likely.
Based on a portfolio valuation of A$1.6b, the net asset value per share of Wee Hur&rsquo s stake in the PBSA would probably be closer to 43.9 cents. At the current price of c. 50 cents and book value of 73 cents (P/B of 0.7x), one might need more convincing that further good returns is likely.
Still a novice here trying to learn the ropes of investing. Happy to have your guidance and any differing views so we could learn from each other. Drop me a message if you&rsquo d like the internal workings for 1HFY24 JV values for the PBSA.
Happy investing and stay safe. Cheers!
Hello Foreverfreedom
Than you for the timely reminder
Than you for the timely reminder
FOREVERFREEDOM ( Date: 23-Oct-2024 10:09) Posted:
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For those who vested in Wee Hur earlier time, congrats.
So, now is time to relook at Sinarmas Land, who is undervalued too?
So, now is time to relook at Sinarmas Land, who is undervalued too?
superstartup ( Date: 22-Oct-2024 15:15) Posted:
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this stock did stir abit when the first report from straits times reporter at end may . since june up to early sept it ding dong arount 23 cts before the break out. congrats if you have entered then.
Did he write on Hong Fok too ?
superstartup ( Date: 22-Oct-2024 15:15) Posted:
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