Ann: Dividend/Distribution - TOT, page-15

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chuckbass

321 Posts.

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28/09/23

14:56

Post #: 70077158
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Originally posted by timbowls: ↑

Thank you mate that's all laid out very well for me to understand.

So if we use your figures and take the free cash flow figure divided by 144 million shares on issue that gives us 3.7 cents per share dividend as my "worst case scenario".

Using my reduced NTA figure of 85 cents per share this means we're trading at a 30.5 percent NTA discount with a potential gearing rate of 41 percent and a potential forward looking dividend yield of 6.1 percent at the current SP.

It's not quite as much of a steal as it looks on the surface using adjusted figures but still some deep value here I think.

Probably a "best case" scenario if your an investor thinking shorter term would be buy in now, receive 12 months of very high dividends while they can still be sustained and then TOT gets bought out around the 85 cents mark when some consolidation of the smaller REITS begins to happen.

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Yeah - 3.7 cents based on free cash but 5.7 cents if you include the $3m already in the bank

I am prepared to back Tony / management here to get creative and push for a positive outcome on the leasing and asset sales.

There is also the debt facility with $20m undrawn, and whilst leverage / gearing is important to the covenants, I genuinely wouldn't mind if they draw the facility to fund a buyback to weather this short-term choppiness - would also, as previously discussed in the thread, mean the free cash generation isn't spread over as many units, boosting the dividend per share

TOT Price at posting: 59.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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