Post Reply
1541-1560 of 1859
The Capitalization Rate is determined by projecting the net income a property is expected to generate. It is computed by dividing the net operating income by the property' s asset value, expressed as a percentage. This metric acts as an approximation of the potential return on investment for real estate investors.
Over an extended time horizon, the valuation is likely to rise due to the lower anticipated capitalization rate.
For those involved in trading, close monitoring of the gearing ratio is essential. However, for individuals investing in real estate, it' s advisable to buy during periods of high gearing ratio, signifying the acquisition of assets at a lower cost.
chengwh1 ( Date: 19-Nov-2023 13:45) Posted:
Thank you again.
But have you factored in increased debt cost due to higher interest rates ? " The numerator will increase too" in the Gearing formula.
What I have been talking abt earlier was only the denominator decreasing due to devaluation.
fatpig ( Date: 19-Nov-2023 13:19) Posted:
| The average devaluation of national commercial assets in the United States declined by 8% from December 2022 to September 2023. Assuming that rental income remains stable until February 2024 (based on reported occupancy rates and rental reviews), and factoring in an estimated 8% devaluation, my analysis, supported by technical charts, indicates a winning-to-loss ratio of 2:1 |
|
|
|
Thank you again.
But have you factored in increased debt cost due to higher interest rates ? " The numerator will increase too" in the Gearing formula.
What I have been talking abt earlier was only the denominator decreasing due to devaluation.
fatpig ( Date: 19-Nov-2023 13:19) Posted:
The average devaluation of national commercial assets in the United States declined by 8% from December 2022 to September 2023. Assuming that rental income remains stable until February 2024 (based on reported occupancy rates and rental reviews), and factoring in an estimated 8% devaluation, my analysis, supported by technical charts, indicates a winning-to-loss ratio of 2:1.
chengwh1 ( Date: 19-Nov-2023 13:05) Posted:
Thank you, fp... for the input,...
I like the capital gain too, but I' m thinking,... we have to escape before the valuation report comes out, right ? If the valuation drops drastically and gets reported, the price would plunge again. We have to have enough gains betw now and the day the report appears. Not to mention if there are leakages of insider news. What do you think ?
|
|
|
|
The average devaluation of national commercial assets in the United States declined by 8% from December 2022 to September 2023. Assuming that rental income remains stable until February 2024 (based on reported occupancy rates and rental reviews), and factoring in an estimated 8% devaluation, my analysis, supported by technical charts, indicates a winning-to-loss ratio of 2:1.
chengwh1 ( Date: 19-Nov-2023 13:05) Posted:
Thank you, fp... for the input,...
I like the capital gain too, but I' m thinking,... we have to escape before the valuation report comes out, right ? If the valuation drops drastically and gets reported, the price would plunge again. We have to have enough gains betw now and the day the report appears. Not to mention if there are leakages of insider news. What do you think ?
fatpig ( Date: 19-Nov-2023 12:10) Posted:
Certainly! I' ve been closely monitoring this investment for a year now and recently decided to make a modest purchase of 180,000 units, aiming for gradual gains.
The primary factor influencing my decision is the unfavorable response of overseas investors to the US government' s 30-year bonds. Local banks and institutions in the US are compelled to absorb a significant portion of these bonds. In response to this tepid reaction, the US government plans to stagger the issuance of these bonds until the first quarter of the next year. Given this situation, I anticipate that the Federal Reserve is unlikely to raise interest rates, even if inflation remains above the targeted 2%.
|
|
|
|
Thank you, fp... for the input,...
I like the capital gain too, but I' m thinking,... we have to escape before the valuation report comes out, right ? If the valuation drops drastically and gets reported, the price would plunge again. We have to have enough gains betw now and the day the report appears. Not to mention if there are leakages of insider news. What do you think ?
fatpig ( Date: 19-Nov-2023 12:10) Posted:
Certainly! I' ve been closely monitoring this investment for a year now and recently decided to make a modest purchase of 180,000 units, aiming for gradual gains.
The primary factor influencing my decision is the unfavorable response of overseas investors to the US government' s 30-year bonds. Local banks and institutions in the US are compelled to absorb a significant portion of these bonds. In response to this tepid reaction, the US government plans to stagger the issuance of these bonds until the first quarter of the next year. Given this situation, I anticipate that the Federal Reserve is unlikely to raise interest rates, even if inflation remains above the targeted 2%.
chengwh1 ( Date: 17-Nov-2023 22:40) Posted:
| Price moved a lot becos Prime has dropped into the single-digit Euro cent region. If someone wishes to gamble here, he is forced to buy at such minimum ' spreads' , which will ' move' the price a lot percentage-wise |
|
|
|
Just read my inputs this weekend.
You are focussing on the wrong thing this time. You are ' caught' by the dividend payout which may stop if the valuation drops by,... say, 10% ? Enoughsaid abt your dividend enthusiasm here,...
I will chk on the latest gearing ratio now,... and,... pls don' t call it a LIE. I am trying to conduct a discussion here. From my many postings, you would see I am a dividend investor, not a Shortist. Unless of course, you just blabbered out without checking. I accept corrections,.. but not accussations.
delsolvtec ( Date: 18-Nov-2023 18:15) Posted:
Wow what a LIE ! Net gearing in the latest report is 43.7% . Stop lying you Shortie.
Plus July 2023 was EASILY refinanced by a year and we expect that to continue next yr esp when interest rates remain stable or even drop.
Latest Q already booked 1.4ct in distribution available from this Q. In the next Q there will be abt another 1ct div. Thus making the dividend in Feb 2024 ( half yr ) to be around 2.2ct a share.
That's huge.
Keeping my 4,000,000 shares. :)
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
|
|
Certainly! I' ve been closely monitoring this investment for a year now and recently decided to make a modest purchase of 180,000 units, aiming for gradual gains.
The primary factor influencing my decision is the unfavorable response of overseas investors to the US government' s 30-year bonds. Local banks and institutions in the US are compelled to absorb a significant portion of these bonds. In response to this tepid reaction, the US government plans to stagger the issuance of these bonds until the first quarter of the next year. Given this situation, I anticipate that the Federal Reserve is unlikely to raise interest rates, even if inflation remains above the targeted 2%.
chengwh1 ( Date: 17-Nov-2023 22:40) Posted:
Price moved a lot becos Prime has dropped into the single-digit Euro cent region. If someone wishes to gamble here, he is forced to buy at such minimum ' spreads' , which will ' move' the price a lot percentage-wise.
marketuncle ( Date: 17-Nov-2023 13:37) Posted:
| yes, dividends stop once covenants are breached. And right now it has yet refinance the debt due soon next year. Either way, it' s fate is squarely in the hands of the lenders and shareholders interest is the last thing mgt or lenders will care about. That said, the price of both PRIME and MUST are priced for default, so there' s still upside from here... but still a gamble. From its low till now, price moved alot without material change in fundamental (whether debt or vacancy). Dyodd. |
|
|
|
Wow what a LIE ! Net gearing in the latest report is 43.7% . Stop lying you Shortie.
Plus July 2023 was EASILY refinanced by a year and we expect that to continue next yr esp when interest rates remain stable or even drop.
Latest Q already booked 1.4ct in distribution available from this Q. In the next Q there will be abt another 1ct div. Thus making the dividend in Feb 2024 ( half yr ) to be around 2.2ct a share.
That's huge.
Keeping my 4,000,000 shares. :)
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
Price moved a lot becos Prime has dropped into the single-digit Euro cent region. If someone wishes to gamble here, he is forced to buy at such minimum ' spreads' , which will ' move' the price a lot percentage-wise.
marketuncle ( Date: 17-Nov-2023 13:37) Posted:
| yes, dividends stop once covenants are breached. And right now it has yet refinance the debt due soon next year. Either way, it' s fate is squarely in the hands of the lenders and shareholders interest is the last thing mgt or lenders will care about. That said, the price of both PRIME and MUST are priced for default, so there' s still upside from here... but still a gamble. From its low till now, price moved alot without material change in fundamental (whether debt or vacancy). Dyodd. |
|
i did a dilutive rights stress test with MUST (posted at the thread there) and did one for PRIME.
2 for 1 rights issue at 8 cts (~ 50% discount from current): NAV drops from 75 cts to 51 cts
1 for 1 rights issue at 8 cts: NAV drops from 75 cts to 41 cts.
So either way, still more than 2x current share price... :).. really worth a gamble :)
yes, dividends stop once covenants are breached. And right now it has yet refinance the debt due soon next year. Either way, it' s fate is squarely in the hands of the lenders and shareholders interest is the last thing mgt or lenders will care about. That said, the price of both PRIME and MUST are priced for default, so there' s still upside from here... but still a gamble. From its low till now, price moved alot without material change in fundamental (whether debt or vacancy). Dyodd.
If breached, dividend stops. Then hoping for no suspension, like what is happeing to MUST now. If no suspension, can still hope for capital gain if problem is solved ! To hope for no suspension, MAS must decide that the backing of the sponsor is strong enough to allow mkt to continue trading. Anyn comments, bros ?
marketuncle ( Date: 16-Nov-2023 21:48) Posted:
Very likely for valuation to drop and breach loan covenant. But take the cue from MUST to see how they resolve their breach.
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
|
|
It?s definitely going to 200 moving forward. 5 bids incoming. Hold and be rewarded
Looking good so far
biper66 ( Date: 16-Nov-2023 21:53) Posted:
remains to be seen
for now hope it continues towards 16.5 and up
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
|
|
remains to be seen
for now hope it continues towards 16.5 and up
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
Very likely for valuation to drop and breach loan covenant. But take the cue from MUST to see how they resolve their breach.
chengwh1 ( Date: 16-Nov-2023 20:30) Posted:
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ? |
|
Prime' s Gearing now is approximately 46%. Wondering what will the Valuation Exercise this year-end do to this Gearing ?
Will the Valuation drop drastically,... causing the Gearing to shoot-up beyond 50% ?
As mentioned, covering the gap to 189
Then will be breakout
Midtermer ( Date: 16-Nov-2023 15:20) Posted:
BO 160. 165 incoming. Cheers
Midtermer ( Date: 16-Nov-2023 13:19) Posted:
| Looks like flushing done, continue uptrend to 160+ soon? |
|
|
|
BO 160. 165 incoming. Cheers
Midtermer ( Date: 16-Nov-2023 13:19) Posted:
| Looks like flushing done, continue uptrend to 160+ soon? |
|
Looks like flushing done, continue uptrend to 160+ soon?
