I'm not fussed about (unfranked) dividends as I end up paying more tax on that relative to capital gains, but yes the DRP at a discount (based on a share price which is already at a discount to NTA) seems like a giveaway to whoever participates in the DRP.
The business itself however looks to be in good shape; reading the report:
1. Laurel Residence - 2 * 42 story residential towers, 1,260 units, GDV of AUD175m expected to be completed ahead of schedule (which was due in 2026)
2. Aster Hill - 2 * 32 story residential towers, 1,150 units, GDV AUD 153m, expected to be completed in 2026
3. Bamboo Hills, 3 residential towers totaling 2,517 units with link to Mass Transit line, GDV of AUD 445m expected to be completed in 2029
4. Duo Tower, Grade A office building, 2 * office towers with 239 office units in tower 1 & the other for rental, GDV of 413m and due for completion in 2027
Then we have the rental/hospitality operations generating ~AUD150-160m per annum (essentially paying for all the operating cost of the business so sales margin drops to the bottom line), and they are only at 66% occupancy in Vietnam.
There is also another tower due to kick off in Vietnam soon.
Just the 4 developments listed above is ~AUD 1,200m in GDV so with a conservative 35% margin, you are looking at over AUD1,600m with around 2/3rds of that due for completion by 2026/7 (so 2-3 years away).This is in addition to the cash pile they have plus all the properties they have for rental....all with no debt.
I'm not sure how far in advance they sell these projects, but I'm hoping that CY2025 & CY2026 are going to be good years (and these projects are just coming on line as interest rates moderate & property values stablise).
The challenge with holding this is lack of visibility, guidance and any notice of retail shareholders....so the above is only my assumption that things look to improve, but hard to know for sure given how much of this is sold in advance and also what else is in the pipeline (they would have to continue to refresh their land bank looking forward 5-10 years, but I assume this is just standard for the family).
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