TSXV:PAR.H - Post by User
Post by
stockeditoron Nov 26, 2014 4:30pm
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Post# 23167474
Revision of Estimated Value of Units (Using Cash NOI)
Revision of Estimated Value of Units (Using Cash NOI) | | | | BRAD | | Stock |
| | | | Sturges | | Editor [Revised] |
| | | | | | |
| | | | | | |
| NOI Estimated 2015 | | 0.3543 | | .40 |
| | | | | | |
| Capitalization Rate | | 0.0675 | | 0.06125 |
| | | | | | |
| NAV | | | 5.25 | | 6.53 |
| | | | | | |
| Discount Rate | | 0.1 | | 0.1 |
| | | | | | |
| Trading Price (One Year Ahead) | 4.75 | | 5.88 |
| | | | | | |
Sturges, uses AFFO, as his cash NOI, in Q3 the AFFO was .10. So its not a stretch
to use .40 for the entire year. You can see that this makes a major difference to the valuation
of the real estate portfolio. Now the valuation of the units overall, we can use Sturgess number EFFO of .44 plus say .02 to .46X12.5= 5.75. The book equity is worth apx 5.83 so estimates are fair enough. It looks like people buying at this entry level are still getting a real bargain. Do your own DD, do not rely on someone else's opinion.