sharetrader
Page 1942 of 1942 FirstFirst ... 942144218421892193219381939194019411942
Results 19,411 to 19,415 of 19415
  1. #19411
    Member
    Join Date
    Jan 2015
    Posts
    355

    Default

    Didn't mention REINZ - agree their data should always be investigated further.

    OCA have a history of more modest increases due to property valudation (FY 23 ~0.5% and FY 22 ~2.0%) so I'm not worried about a sudden revaluation down of their assets - my assertion is that is already accounted for.

    We need EPS growth and sales volumes.

  2. #19412
    Legend Balance's Avatar
    Join Date
    Feb 2003
    Posts
    21,485

    Default

    Quote Originally Posted by ValueNZ View Post
    Yes roughly.

    The investment properties are recorded at fair value by an independent auditor.
    I suggest you have a chat with a valuer like CBRE or one of the RVs to find out how they actually value RVs, which are then included in the RVs' accounts.

    What I can tell you is that they use a combination of income capitalisation and discounted cash flow (yes, cash flow).

    No weighting is given to comparative sales as valuation with RVs is underpinned by the specific strength of the Leases and Tenant covenant, and not the bricks and mortar.
    Last edited by Balance; 27-03-2024 at 03:49 PM.

  3. #19413
    Speedy Az winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    37,738

    Default

    Quote Originally Posted by Balance View Post
    I suggest you have a chat with a valuer like CBRE or one of the RVs to find out how they actually value RVs, which are then included in the RVs' accounts.

    What I can tell you is that they use a combination of income capitalisation and discounted cash flow (yes, cash flow).

    No weighting is given to comparative sales as valuation with RVs is underpinned by the specific strength of the Leases and Tenant covenant, and not the bricks and mortar.
    I’ll repeat it mate …. Yes indeed, cash flows are used in determining the valuations
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  4. #19414
    ****
    Join Date
    May 2013
    Location
    NZ
    Posts
    4,480

    Default

    Quote Originally Posted by winner69 View Post
    I’ll repeat it mate …. Yes indeed, cash flows are used in determining the valuations
    What would the cashflows be if they stopped expanding and just completed their existing builds and sold them even for a 10% profit and collected the DMF on resales?

    As they are reinvesting profits from new sales & resales into more assets, the increase asset valuation surely does need to be considered.

    This is why I get a valuation of around 99c & over time that should grow as long as they continue to make profits from sales & keep operationally at least break even or more.

  5. #19415
    Legend Balance's Avatar
    Join Date
    Feb 2003
    Posts
    21,485

    Default

    Quote Originally Posted by Daytr View Post
    What would the cashflows be if they stopped expanding and just completed their existing builds and sold them even for a 10% profit and collected the DMF on resales?

    As they are reinvesting profits from new sales & resales into more assets, the increase asset valuation surely does need to be considered.

    This is why I get a valuation of around 99c & over time that should grow as long as they continue to make profits from sales & keep operationally at least break even or more.
    Valuation is an art rather than a science, it is often said. Nothing could be truer imo!

    A discounted cashflow valuation takes into consideration a multitude of factors - principal one being cost of capital and the discount rate. A 1% movement there can have have a marked impact on valuation, especially with interest rates where they have been and where they are now.

    Then there are the risk factors which are notoriously difficult to quantify and build into the discount rate.

    Finally, the short term (1 to 5 years) free cashflows have a proportionally bigger impact than the terminal cashflows (>10 years).

    From the above, it can be assessed that the short term (5 years) heavy capital expenditure and ongoing underlying operating losses have the greater impact on the valuation of OCA than say, a mature entity.

    As my ex-boss used to coach us young rookies in the game, always ask yourself how long is a piece of string!

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •