Quote Originally Posted by CJ View Post
In part but listed property stocks are valued on their yield. Variations occur due to debt levels, quality of buildings/tenants etc. The two (NTA and yeild) maybe confused as the value of a building is linked directly to its rental yield - an increase in NTA will be due to an increase in rental yield.

So at earnings of 7.6c per share, and a dividend policy of say 90% and a target yeild of 8% gives you a SP of 85c. If their profit doubles as you suggest, the that price will also double.

Edit: I am not sure what their dividend policy or whether they plan to distribute or use excess funds to pay down debt or expand.

You'd never get 8% yield on any dairy farm in NZ ( maybe a $10 payout ). I would think with a bumper year anticipated next year they will re-invest in there re-grassing program , re-invest in stock ( more culls ) , and keep the bank happy by paying down a chunk of the new debt taken on to buy out Mitsui.