Amara Holdings

[kayaroti]

In the recent re-rating of Hotel and Property counters, Amara seems to be overlooked by most. It could be that its reported NAV is only $0.39.
However, if you take a closer look at its yet to recognised surpluses on its properties, it may be a different story altogether and may be worth considering for value investors.

Recently Amara has also ventured into its first EC project.
http://www.stproperty.sg/articles-proper...ct/a/94706

Ref http://www.amaraholdings.com/Annual_Repo...ara_AR.pdf

Base on 2011 Financial report
Total surplus not recognised (pg 82) = $229,230,000 + $86,497,000 + $71,603,000 = $387M

NAV in report = $0.3931
Total number of shares issued is (pg 90) about 577M

RNAV = $0.3931 + $387M/577M = $0.3931 + $0.671 = $1.064

At 44 cents Amara is trading at about 60% discount to RNAV.

Vested and Caveat Emptor

[paullow]

does it pay dividends consistently? is the nav on a rising trend? both would suggest a growing and sudtainable biz.

[money]

...
Base on 2011 Financial report
Total surplus not recognised (pg 82) = $229,230,000 + $86,497,000 + $71,603,000 = $387M

I always feel that the revaluation surplus is crap if management has no intention of unlocking it by SELLING the properties and DISTRIbUTING the proceeds by a SPECIAL DIVIDEND.

Management always think that they do a good job managing the PPE but the ROE is usually disappointing

[godjira1]

This is interesting though. An activist investor can buy enough shares and try to push mgmt in the right direction (ala carl icahn, pershing, etc). Market cap is small enough, not sure about the free float though.

[money]

Well, you will need quite a bit of money for that. i wish i have a few hundred million to do that

[kayaroti]

Any possible reason why management prefers not to report NAV with the latest valuation but keep it low using historical NAV value ?

[money]

Any possible reason why management prefers not to report NAV with the latest valuation but keep it low using historical NAV value ?

Not too sure about this. Perhaps those properties are being used by the company as ppe. I think it is quite a common practice, some properties of LKH are also kept at the lower value

[kayaroti]

Any possible reason why management prefers not to report NAV with the latest valuation but keep it low using historical NAV value ?

Not too sure about this. Perhaps those properties are being used by the company as ppe. I think it is quite a common practice, some properties of LKH are also kept at the lower value

Sorry, what is ppe ?

[ngcheeki]

Any possible reason why management prefers not to report NAV with the latest valuation but keep it low using historical NAV value ?

Not too sure about this. Perhaps those properties are being used by the company as ppe. I think it is quite a common practice, some properties of LKH are also kept at the lower value

Sorry, what is ppe ?

PPE stands for "Property, Plant and Equipment" which is one of the item in the Non-Current Asset in the Balance Sheet.

[level13]

In the recent re-rating of Hotel and Property counters, Amara seems to be overlooked by most. It could be that its reported NAV is only $0.39.
However, if you take a closer look at its yet to recognised surpluses on its properties, it may be a different story altogether and may be worth considering for value investors.

Recently Amara has also ventured into its first EC project.
http://www.stproperty.sg/articles-proper...ct/a/94706

Ref http://www.amaraholdings.com/Annual_Repo...ara_AR.pdf

Base on 2011 Financial report
Total surplus not recognised (pg 82) = $229,230,000 + $86,497,000 + $71,603,000 = $387M

NAV in report = $0.3931
Total number of shares issued is (pg 90) about 577M

RNAV = $0.3931 + $387M/577M = $0.3931 + $0.671 = $1.064

At 44 cents Amara is trading at about 60% discount to RNAV.

Vested and Caveat Emptor

Its unlikely to see a px increase due to the surplus amt not recognised as you mentioned. 3 out of the 4 properties valued at cost are pertaining to its hotel business. Unless they wanted to exit the hotel business, then it will make sense to re-value the properties. However, there is currently no such indication. Hence, these surplus are meaningless to the investor.