misterkrusty

there is no reason they can't spend all the cash on buybacks.

when their competitors blew up in 2018 and banks tightened mortgage lending, they paid down all their net debt and have built up cash since. They're now doing a decent sized buyback, and we should all encourage the company to do even more.

company hasn't seen any major impact on operations as of yet

my 2 cents: when I looked at this years ago, I was surprised at just how little cyclicality there was to the fertilizer biz. Thiosul needs to be applied every year (i.e. farmers can't skip a year) and is used for growing a variety of fruits/nuts/vegetables. They seem to have a competitive advantage in sourcing some of the raw materials.

I'm pretty sure but not certain the use of treasury shares for scholarships was not approved.

thanks. are those multiples on trailing or forward numbers? I spent a lot of time on these companies years ago. the fertilizer business is a gem

it depends on the success of the REIT. without the REIT, they're still growing the base of units by low double digits (%). all new units come with a mgmt contract, gas, and electric. only about 2% of units don't renew their mgmt contract each year. not sure about gas and electric. also, there is operating leverage in Services and Energy segments. margins were down in Services in 2020 due to Covid

here's the email from the MOI slide deck: mkruger@mpkpartners.com

JV properties - unlevered 100% owned values: ALICE - $219.1m (fy19 AGM slide 9: yoy change in asset value of JV portfolio $455.8-23.6.7=219.1m ... ALICE was only JV property completed in FY19) Works out to $5,530/sm which is much higher than the typical $2-3k/sm but just look at it. It's the crown jewel. 6 Tampines - global tech company leasing "greater than the supermajority of net leasable area" this is a high-spec property that Boustead previously built for a Fortune 500 tech company (and was owned by that company). So they bought it recently for $77.4m and repurposed for the new tenants. I believe this JV's balance sheet is in the notes, listed as having 8.6m current assets, 81.7 non-current Braddell Road - bot land for $53m. The total HFI property value dropped by $55.7m yoy in fy20 annual when Braddell was reclassified as a JV once they sold that 49% stake, so that's probably the current value aside from whatever has been spent since during construction. When Boustead sells a stake at a price that seems way low ($8m in this case), it's usually because the buyer is assuming some of the existing debt on the property. Such is the case with BIF and 11 Seletar and Continental ph3. 11 Seletar & Continental ph3 - see BIF doc 98 Tuas (Amcor) - brand new but nuthin' fancy ... maybe a tad over $2k/sm Razer - $100m ... works out to $5,181/sm which I think makes sense in comparison to $/sm for ALICE. Just look at the pictures. https://sg.finance.yahoo.com/news/razer-boost-headcount-1000-staff-singapore-end-2020-110913459.html Bombardier ph2 - call me crazy, but I'm assuming same $/sm as phase 1 For these last 3 properties you need to subtract some value to account for the fact that they're still under construction. Boustead expects all 3 to be done by March. Then for all properties you subtract the debt, then multiply by Boustead's % ownership. Sometimes the debt is disclosed in the notes. I just gave you some clues regarding 11 Seletar & CA3. When in doubt assume 70% debt financing. 100% owned properties: Just take appraised values in the annual report and subtract what BIF is paying. Then you add to: Beijing Tongzhou stake D&B business Debt & equity in BIF Value of mgmt fees from BIF (Boustead not disclosing numbers, but says there will be performance fees along with mgmt fees) Net cash ... to get the super-secret magical fair value number that will bring you great happiness and prosperity for all your days.

statutory rate in Singapore is 17%, fwiw. tax shields are nice, but doesn't the C-corp then have to pay taxes on distributions received? i.e. like I'd have to pay taxes on distributions I got from an MLP (or any LP for that matter). on another topic, I spoke with IR and sounds like they're not really thinking about taking this public. with only 3 investors (boustead, metro, and I suspect that sovereign wealth fund) they can be flexible and quick. I was thinking that a public REIT could allow them to monetize 100% of the real estate instead of just 75%, but whatever. this is still a very good outcome. they referred to this as a "capital recycling platform." you can bet there will be more sales to BIF. methinks the story here isn't just about getting fair value for the real estate on the books, but also about an ongoing stream of development and sales at 6-7% cap rates, which this company seems able to do at good profit margins. the time from capital outlay to inflow has been greatly shortened. Will also be mgmt fees for running BIF, including performance fees, but no details revealed yet.

I think you're right about the 7% debt being a way to minimize taxes. Since all equity holders are to hold debt in the same proportion, they should be indifferent to the size of the coupon aside from tax considerations. For the same reason, as far as solvency is concerned, only the bank debt should matter. I think an IPO would just pay off the 7% debt and raise public debt in conjunction with the offer.

Agree with Cicero on the REIT - no reason they couldn't IPO this after growing it to sufficient size and waiting for the right market conditions. I think it's much easier to get the ball rolling this way via institutional investors. Keep in mind that BP is entirely a B2B company - they have plenty of relationships w/ institutions due to the JV partnerships, but no retail marketing arm. Another company I own - Shinoken (8909 in Japan) recently started a private REIT that they hope to IPO in a year or two. That one has some retail investors because Shinoken has traditionally been a B2C company and thus its easy for them. Writser - good catch on the GSK building. I'd say this deal seems to validate the independent valuations in the annual report. Subtracting the sale prices from the HFI and HFS properties, I can get to the remaining values using reasonable assumptions (S$/square meter) for the 4 unsold properties. Same goes for the remaining 4 unsold completed JV properties. Anyone agree that BIF seems really levered? I see an initial 456.1m outlay for the properties, funded by 54.8m in equity, 236m of 7.0% notes, and the rest by ... bank debt? Granted you have 99% occupancy and a 7.7yr WALE, but jeez... I think ALICE wasn't included because it's not fully leased-up yet. Also think they wanted this to be 100% Singapore, so the foreign stuff stayed out. Does anyone understand the Seletar Aerospace and Continental Ph3 deals? Why are stakes being sold for so much less than the appraised values? Anyone know if some of the 93m to be spent to "discharge encumberances" will reduce any of the debt on the balance sheet?

Yes sir, the long-awaited day has finally arrived. I'm currently going thru the doc trying to answer a few main questions: 1) what's the implied cap rate on the properties sold? 2) what's the value of the properties not sold? also would like to know: what to expect for future sales to BIF? odds that Metromile doesn't subscribe for its 26%?

Trial date set for February 22, 2021. Anyone else getting excited?

thanks AWS. as I understand it, the biggest drag on oil prices now is the continued slump in demand for jet fuel. maybe we could take your Gulfstream on a tour of AMPY properties?