Their total debts make up to about 11.5B. and they managed to pay back S$122M first quater this year and at most S$488M this year.
They are still left with S$10.512B of debts to repay plus bonds interest payout of 5%, which make out to be about S$45M per quarter.
To hold or sell will be your choice to make. Good luck :)
Hi Alex here. As you know i'm still quite 'raw' to investing, may i know how do people actually value property companies like capitaland. Those companies with huge property assets.
ReplyDeleteThey will hire someone to value their properties once a year. Normally, these companies will need to take up a lot of debt to purchase new lands and develop their property.
ReplyDeleteoooh i see, what about investors? The whole valuation for an investor point of view seems complicated. I dont think by looking at the earnings we are able to evaluate the company. What about the Net Asset Value? How do we actually make a judgement?
ReplyDeleteIt really depends on the companies. Some of the companies are trading below NAV value. But stock prices have not rise. Will you buy it?
ReplyDeleteIt also depends on whether the company has resources for growth and is positioned to grow at a bigger scale.
One of the example would be SIA engineering. The dominant MRO located in Changi.
I'll have to look more in depth into the company, a cheap company doesn't mean it is a well run and good company.
ReplyDeleteActually I'm more curious about the valuation of property companies to estimate their intrinsic value.
Btw, what is MRO???
Maintanance, Repair and Overhaul.
ReplyDelete