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  1. #431
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    Quote Originally Posted by Rawz View Post
    Hey LEK, great post!

    Do you know how that fair market value is calculated? Do they use a cap rate similar to what the reits get? Or is it just pie in the sky stuff?
    From the 2020 annual report (when hotel assets were still recorded as fair value):

    Land and buildings are shown at fair value less subsequent depreciation for buildings. Fair value is determined by management using valuation models, and confirmed by independent registered valuers on a staged triennial basis. In the intervals between each triennial cycle an internal valuation and impairment assessment is performed for each hotel asset to ensure its carrying value continues to reflect its fair value.

  2. #432
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    Quote Originally Posted by DarkHorse View Post
    They seem to have done OK long term (or have consolidations inflated nominal share price gains?)

    But surely the majority holders must have some plan to realise the intrinsic value.

    Love to hear people's thoughts about options and how likely they are (apologies if this is old ground - haven't read back too far...)
    I’ll post a more detailed deep dive later today or tomorrow.

  3. #433
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    If you look at the 7 year period of 12/2013 to 12/2019 which is before MCK changed the way they value their property holdings and prior to covid it paints the following picture:

    The 7 year CAGR in book value is 5.7%
    The avg dividend yield during that period was 2.18%

    Its not exactly setting the world on fire?

    Avg price/book ratio over the 7 years was 0.44. If you apply that to LEKs $6.60 fair value price per share then maybe one could say the SP is worth $6.60*0.44= $2.91.

    Disc. Not a holder. Not looking to buy as better fish in the sea imo.

  4. #434
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    Quote Originally Posted by Rawz View Post
    If you look at the 7 year period of 12/2013 to 12/2019 which is before MCK changed the way they value their property holdings and prior to covid it paints the following picture:

    The 7 year CAGR in book value is 5.7%
    The avg dividend yield during that period was 2.18%

    Its not exactly setting the world on fire?

    Avg price/book ratio over the 7 years was 0.44. If you apply that to LEKs $6.60 fair value price per share then maybe one could say the SP is worth $6.60*0.44= $2.91.

    Disc. Not a holder. Not looking to buy as better fish in the sea imo.
    Ill dive deeper later - but consider the earnings multiple is ridiculously low, especially when you take out the cash.

  5. #435
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    Quote Originally Posted by LaserEyeKiwi View Post
    Ill dive deeper later - but consider the earnings multiple is ridiculously low, especially when you take out the cash.
    Also, some parts of the business were already valued on a cost basis before they changed the policy for the hotels (CDL operations & Zenith were both already not valued at fair market value)

  6. #436
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    Quote Originally Posted by LaserEyeKiwi View Post
    Also, some parts of the business were already valued on a cost basis before they changed the policy for the hotels (CDL operations & Zenith were both already not valued at fair market value)
    I know this has been discussed before on the CDI/CDL thread, but the development properties should not be included in the accounts at fair market value. The nature of their business means that these properties will be sold and, as developers, they will eventually have to pay tax on the difference between cost and sale price (and less relevant expenses). Including those properties at current fair market value would therefore overstate the value of the assets to shareholders by the amount of the tax.

    The investment properties which CDI/CDL is adding to its balance sheet are, of course, another matter entirely. They're currently included at cost but IMHO should be restated to fair market value in line with property investment companies. Right now it's (probably) not particularly significant but I hope this part of CDI/CDL's business will grow over time.

  7. #437
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    Quote Originally Posted by traineeinvestor View Post
    I know this has been discussed before on the CDI/CDL thread, but the development properties should not be included in the accounts at fair market value. The nature of their business means that these properties will be sold and, as developers, they will eventually have to pay tax on the difference between cost and sale price (and less relevant expenses). Including those properties at current fair market value would therefore overstate the value of the assets to shareholders by the amount of the tax.

    The investment properties which CDI/CDL is adding to its balance sheet are, of course, another matter entirely. They're currently included at cost but IMHO should be restated to fair market value in line with property investment companies. Right now it's (probably) not particularly significant but I hope this part of CDI/CDL's business will grow over time.
    I agree with that to some degree (essentially treating the land holdings for CDL residential section developments as “inventory”), although the land holdings at CDL do change in value quite significantly over the very long holding period (years) before they are finally settled on as separate titles, both from the advancement in consenting & development stages, but also from the change in the value of raw undeveloped land values.

    Agree 100% on the new CDL long term investment property holdings (industrial/commercial/retail land & buildings) - any other listed property company would be revaluing those assets annually at a minimum.

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  9. #439
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    Interim Report

    http://nzx-prod-s7fsd7f98s.s3-websit...901/378764.pdf

    MCK as a group made an unaudited profit before tax and non-controlling interests of $32.05 millionfor the six month period ended 30 June 2022 (2021*: $47.55 million). The main contributors to theseresults were sales of residential sections from our majority-owned subsidiary CDL Investments NewZealand Limited which continues to trade strongly and the sale of three apartments at the ZenithResidences in Sydney settled during the first six months also contributed to this result.

    MCK has therefore recorded a profit after income tax and non-controlling interests of $15.40 million(2021*: $31.34 million) on group revenue for the period of $83.66 million (2021: $98.36 million). Ourearnings per share for the period decreased to 9.74 cents per share (2021*: 24.47 cps) with the prioryear reflecting the impact of a one-off gain of $15.87 million (10.03 cents per share) on disposal fromthe sale of land in May 2021 (described as other income). MCK’s Net Tangible Assets per share as at30 June 2022 was $3.33 per share (2021*: $3.20 per share).
    Last edited by Sideshow Bob; 16-09-2022 at 11:54 AM.

  10. #440
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    Quote Originally Posted by Sideshow Bob View Post
    Interim Report

    http://nzx-prod-s7fsd7f98s.s3-websit...901/378764.pdf

    MCK as a group made an unaudited profit before tax and non-controlling interests of $32.05 millionfor the six month period ended 30 June 2022 (2021*: $47.55 million). The main contributors to theseresults were sales of residential sections from our majority-owned subsidiary CDL Investments NewZealand Limited which continues to trade strongly and the sale of three apartments at the ZenithResidences in Sydney settled during the first six months also contributed to this result.

    MCK has therefore recorded a profit after income tax and non-controlling interests of $15.40 million(2021*: $31.34 million) on group revenue for the period of $83.66 million (2021: $98.36 million). Ourearnings per share for the period decreased to 9.74 cents per share (2021*: 24.47 cps) with the prioryear reflecting the impact of a one-off gain of $15.87 million (10.03 cents per share) on disposal fromthe sale of land in May 2021 (described as other income). MCK’s Net Tangible Assets per share as at30 June 2022 was $3.33 per share (2021*: $3.20 per share).
    FYI - this is a rehash of the results already announced last month. Not sure why they don’t release this on the same day to be honest.

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