wazua Tue, Apr 7, 2026
Welcome Guest Search | Active Topics | Log In

27 Pages«<23456>»
Stanlib I-reit IPO @20/- per unit
Options
Previous Topic · Next Topic
Chaka
#31 Posted : Sunday, October 25, 2015 9:30:34 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Who owns the Greenspan Mall?I ask because of the possibility of a conflict of interest?
Back to top
  |
the deal
#32 Posted : Sunday, October 25, 2015 12:06:34 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Sounds like a good investment opportunity...one just gotta check out the following

1. The Price to NAV -it should not be more than 2
2. Gearing levels (cos this can mess up income distributable to unit holders given the sticky high interest rates in Kenya)-it should not be more than 20%
3. Dividend Yield (It should not be less than 5%)

Why would I buy into this one

1. Issuers Track record-Stanlibs's and Liberty's (parent company) track record compares to none on the African continent...they have done amazing projects in South Africa.

2. Management targeting realistic returns-14% rental yields are realistic and possible...just depends on the buying price and how well the mall is doing in terms of traffic etc

3. Low risk-this guys are not buying land to build and then sell which is a very high risk strategy look at Home Afrika and Britam (Acorn Saga)...this guys are buying Already built property...Build property with tenants in it...which is easy to analyse and predict future cash flows

4. Portfolio diversification-awesome way to get an exposure to Kenya's real estate sector.
Back to top
  | | Edit by user: Sunday, October 25, 2015 12:12 PM | Reason: Not specified
lochaz-index
#33 Posted : Sunday, October 25, 2015 2:18:23 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
the deal wrote:
Sounds like a good investment opportunity...one just gotta check out the following

1. The Price to NAV -it should not be more than 2
2. Gearing levels (cos this can mess up income distributable to unit holders given the sticky high interest rates in Kenya)-it should not be more than 20%
3. Dividend Yield (It should not be less than 5%)

Why would I buy into this one

1. Issuers Track record-Stanlibs's and Liberty's (parent company) track record compares to none on the African continent...they have done amazing projects in South Africa.

2. Management targeting realistic returns-14% rental yields are realistic and possible...just depends on the buying price and how well the mall is doing in terms of traffic etc

3. Low risk-this guys are not buying land to build and then sell which is a very high risk strategy look at Home Afrika and Britam (Acorn Saga)...this guys are buying Already built property...Build property with tenants in it...which is easy to analyse and predict future cash flows

4. Portfolio diversification-awesome way to get an exposure to Kenya's real estate sector.



Going by your premises:
1. They have no assets under management currently meaning NAV = zero. They are fully depending on cash raised to fund purchase of property. Upon successful IPO and listing, NAV(assuming full subscription) = 12.5b less floating costs.

2. I don't know whether REITS are allowed to use leverage in asset acquisition but as it stands, I assume everything is being sourced via equity. So gearing is at 0%.

3. They are supposed to distribute > 80% of rental income+ other incomes(dividends, interest etc) less associated costs. This means 80% of the respective net rental yield which should be over 5%.

4. A gross commercial rental yield of 14% is achievable subject to full occupancy but rarely. Average yield (composite properties) is lower than that.

Subscription wise they might just pull it off seeing as only 25% is slated for wanjiku.
All in all details are a bit hazy to make an informed opinion. Let us see how Mr. Market prices it.
The main purpose of the stock market is to make fools of as many people as possible.
Back to top
  | | Edit by user: Sunday, October 25, 2015 2:32 PM | Reason: Not specified
Liv
#34 Posted : Sunday, October 25, 2015 4:15:08 PM
Rank: Veteran

Joined: 11/14/2006
Posts: 1,311
sparkly wrote:
Impact of Stanlib REIT

REITs are good because they are tax exempt as long as they distribute most of their net income to the beneficiaries. The beneficiary just pays 5% of distribution as tax which is final.




I don't see any tax advantage..... You mean the company will not pay the 30% corporate tax before getting net income? Tax on Dividends - 5% paid by all companies (not REITS only) in kenya to individuals is final.
Back to top
  |
Liv
#35 Posted : Sunday, October 25, 2015 4:26:05 PM
Rank: Veteran

Joined: 11/14/2006
Posts: 1,311
the deal wrote:
Sounds like a good investment opportunity...one just gotta check out the following

1. The Price to NAV -it should not be more than 2
2. Gearing levels (cos this can mess up income distributable to unit holders given the sticky high interest rates in Kenya)-it should not be more than 20%
3. Dividend Yield (It should not be less than 5%)

Why would I buy into this one

1. Issuers Track record-Stanlibs's and Liberty's (parent company) track record compares to none on the African continent...they have done amazing projects in South Africa.

2. Management targeting realistic returns-14% rental yields are realistic and possible...just depends on the buying price and how well the mall is doing in terms of traffic etc

3. Low risk-this guys are not buying land to build and then sell which is a very high risk strategy look at Home Afrika and Britam (Acorn Saga)...this guys are buying Already built property...Build property with tenants in it...which is easy to analyse and predict future cash flows

4. Portfolio diversification-awesome way to get an exposure to Kenya's real estate sector.



This is not convincing:
1. What expertise does Stanlib management have in managing such investments? Isn't this the first time they are dealing with such kind of investments? Why should they be trusted?

2. 14% yield on purchased properties is too high...almost unrealistic. If it was on self developed projects that could be easily convincing. But development from zero is high risk as you rightly point out in your point 3.

3. Low risk yes.... So you expect low return...not 14% indicated.

4. Culturally Kenyans want to have a title deed in their names.... That's why everyone wants a plot somewhere in their name. REITS might be a hard sell to Wanjiku at the beginning .... Maybe institutional investors might consider.
Back to top
  |
Chaka
#36 Posted : Sunday, October 25, 2015 4:46:29 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Liv wrote:


This is not convincing:
1. What expertise does Stanlib management have in managing such investments? Isn't this the first time they are dealing with such kind of investments? Why should they be trusted?

....

May be they have pulled this elsewhere.If so where?
@the deal,Any REITS in Namibia by Stanlib or anyone else?
Back to top
  | | Edit by user: Sunday, October 25, 2015 4:51 PM | Reason: Not specified
the deal
#37 Posted : Sunday, October 25, 2015 4:54:57 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Chaka wrote:
Liv wrote:


This is not convincing:
1. What expertise does Stanlib management have in managing such investments? Isn't this the first time they are dealing with such kind of investments? Why should they be trusted?

....

May be they have pulled this elsewhere.If so where?
@The deal,Any REITS in Namibia by Stanlib or anyone else?

Stanlib is a top dog...they own some properties here but they havent listed them yet http://www.stanlib.com/n...ortfoliohealthcare.aspx

This is a REIT I hold some units in here in Namibia http://www.oryxprop.com/ so far so good...i think they offer more insights on how REITS work
Back to top
  |
lochaz-index
#38 Posted : Sunday, October 25, 2015 6:11:37 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
Liv wrote:
sparkly wrote:
Impact of Stanlib REIT

REITs are good because they are tax exempt as long as they distribute most of their net income to the beneficiaries. The beneficiary just pays 5% of distribution as tax which is final.




I don't see any tax advantage..... You mean the company will not pay the 30% corporate tax before getting net income? Tax on Dividends - 5% paid by all companies (not REITS only) in kenya to individuals is final.


Yes, they are exempt from the 30% corporate tax
The main purpose of the stock market is to make fools of as many people as possible.
Back to top
  |
bird_man
#39 Posted : Sunday, October 25, 2015 7:21:08 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
Two questions here:
1.Yes they will distribute 80% of profits to shareholders.But how do they ensure administrative & finance expenses dont eat up most of rental collections income?
2.Is 14% ROI for shareholder not too high especially with the number of competing malls and commercial properties coming up?Have they been able to do this in SA?
Formally employed people often live their employers' dream & forget about their own.
Back to top
  |
enyands
#40 Posted : Sunday, October 25, 2015 7:22:39 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
how I would love these guys to float this baby tomorrow on nse. with the bear flexing his muscles and demolishing everything on nse, its going to be destroyed so strong that the initial price of 20 will fall below 10.thats when I might jump in. but for now as @mnadii puts it "cash is king" (and I wish I heard his warning about the stocks crash coming-but I ignored ' excuse im new')im not wasting any of my money on this thing.of course it will be oversubscribed but I cant enter with 20. that's way too overrated.wait and see is my thing for now
Back to top
  |
27 Pages«<23456>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.