Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Melcor Developments Ltd T.MRD

Alternate Symbol(s):  MODVF

Melcor Developments Ltd. is a diversified real estate development and asset management company The Company develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. The Company operates in four segments: Land, Properties, REIT, and Golf. The Land segment is responsible for purchasing and developing land to be sold as residential, industrial and commercial lots. The Properties segment owns approximately 24 leasable commercial, retail and residential properties and other rental income producing assets, such as parking lots and land leases. The REIT segment owns approximately 38 leasable commercial and retail properties and other rental income producing assets, such as residential property, parking lots and land leases. The Golf segment owns and manages three 18-hole golf course operations (one of which is 60% owned) and has a 50% ownership interest in one 18-hole golf course.


TSX:MRD - Post by User

Comment by longrun86on Sep 27, 2024 5:52pm
63 Views
Post# 36244809

RE:RE:RE:RE:RE:You Ain't seen nothing yet

RE:RE:RE:RE:RE:You Ain't seen nothing yetI can respect this explanation. You are essentially saying the book value is overstated as the valuation of the properties is too high. Based on the REIT transaction you are saying the properties are overvalued by a few hundred million or roughly $10 per share.

If I am understanding you correctly, then you are applying about a 50% discount (effectively the portfolio discount) in order to arrive at $15 per share.

I think that is a very realistic and achievable price target. Once the REIT deal closes I could see them reinstating a larger dividend which should support your target share price using a dividend based valuation model.

I am a bit more optimistic based on their potential to pull forward the NPV of the land or by selling some properties. My view is that this could be worth $5+ per share.

Best of luck!

LR
<< Previous
Bullboard Posts
Next >>