RE:RE:RE:RE:RE:RE:RE:Singapore’s love affair with student housing continues...snowtigerrr wrote: Exactly stag, at some point CIBT may be able to even buy some of them out as the business scales. He has a large personal stake in the MBA equity which he will only dilute if it adds long term value. Early innings.
That has to be the bigger picture as it makes the most sense.
However, we can't have our cake and eat it too.
We also need to be careful what we wish for.
First, as CIBT shareholders only own approx 40% of the equity, it means we are sheltered from any commercial real estate risk in the city of Vancouver; the GP's take 60% of the reward & risk.
Meanwhile, CIBT takes all of the development fees and Rental fees.
Therefore, without the initial seed money a few years ago from GEC projects 1 and 2, we would not have received the early development fees that enabled us to build cash and contribute to being able to gain ownership of the remaining GEC projects.
And, without those projects, we would still be stuck with a barely profitable SSCD business unit after G&A... talk about transformative.
Meanwhile, despite the fact we may only get 40% of the valuation on a NAV perspective, we will get 100% of the valuation from a DCF on future cash flows of rentals and education, which as we approach the 1000-2000 bed level, easily values us at $2+ per share; meanwhile, the book grows and eventually Toby can begin with becoming the GP on more of the current projects and future projects, and begin to 'scale up' as he sees fit, while increasing CIBT equity share in the process.
Give it time and count your blessings at what has transpired with the ingenuity behind this rental business.