SXP worth over $5 per share, 100% more than current SP?SXP needs to be taken out by larger US competitor to surface SXP real & hidden value.
Worth over $5 and maybe $6 per share?
Possible rationale for over $5 per share:
1. Before sale of 2 owned real estate properties:
Annualized cash flow (Q3 6,694,995 X 4) = 26,779,980 @ just 6x multiple = 160m
Less Debt of say $52m (but will likely be lower at the Dec 2021 year end)
Equity value = 160m - 52m = 108m / 26,714,067 shares = $4 per share
2. After sale and lease back of 2 owned real estate properties:
Assuming the 2 properties combined after tax value is about 52m, meaning sufficient to fully pay down $52m debt. Cash flow remains the same after sale and lease back, because higher rents are offset by eliminated interest costs:
6 x CF = 160m
Equity value now (because debt is gone) = 160m
160m/ 26,714,067 = $6 per share
3. Check: Compare to Book Value per Share:
Current BV = 94m/26.7m = 3.50 per share
Adjusted Book value after sale and lease back = about $5 per share