Oh well, we'll just have to wait for a fatter cheque in March. In the meantime it does feel like a good place to have money parked in case of stock market crash or inflation. I'm predicting the following distribution schedule:
Mar 2022: 62c div + 27c credit (Lanes East, Ingleside and 4 other undeveloped sites)
Sep 2022: 106c div + 45c credit + 37c capital (Grace, Greenmount, Lanes Retail, Hedges)
Mar 2023: 15c div + 6c credit + 27c capital (Hedges, 2 Lanes lots, Royal Pines?, Kenmore?)
Sep 2023: 7c div + 3c credit + 33c capital (Lanes West)
Mar 2024: 2c div + 1c credit + 2c capital (Lanes West)
Total: 192c div + 82c credit + 99c capital
This is based on the following assumptions (wild guesses):
They will maintain a debt to property assets ratio of 1:3
They will distribute all the cash at the end of each half except for $10m working capital
Where franking credits are available, the divs will be franked
Where franking credits are not available, the distribution is a return of capital
Project completions and end values match what they have advised
20% project margin is maintained
$7.7m admin/corporate overhead per half, $4m in the final 6 months to close it out.
They still own Kenmore land (bought for $13.1m in 2018, advertised for sale Sept 2020, no mention of a sale)
SDG Price at posting:
$2.80 Sentiment: Hold Disclosure: Held
