assume a cap rate of 9%, this piece of land is now worth just over 8mil. deducted with 3 mil upfront cost, its got a NAV of 5mil. It's 18k sqm out of the total 67k. assuming this average NAV, the total land should be worth 18.8mil. assuming a bit of hair cut to be conservative, let's say the book value should be upgraded to 16mil, that's an extra 2mil value to FFI as a whole. translated into per share, it's about 25cents a share.
about right?
what I like about this position is that it's got little downside but sturdy and reasonable upside.
Thank you Pioupiou for leading my attention to it just before its AGM last week.... I follow you from TGA. absolutely adore your approach.
FFI Price at posting:
$3.51 Sentiment: Buy Disclosure: Held
