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LH Hotel Leasehold Real Estate Investment Trust (LHHOTEL.BK)

Company Dividend Discount ModelIndustry: REIT - Hotel & MotelSector: Real Estate

Valuation Snapshot

Stable Growth$96.29 - $452.34$213.32
Multi-Stage$52.22 - $57.05$54.59
Blended Fair Value$133.96
Current Price$11.00
Upside1,117.78%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.58%0.00%1.220.680.130.000.200.560.550.390.230.00
YoY Growth--78.14%432.00%0.00%-100.00%-64.55%2.52%42.45%70.98%0.00%0.00%
Dividend Yield--9.00%5.73%1.03%0.00%2.04%4.24%3.02%2.57%1.74%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,385.78
(-) Cash Dividends Paid (M)1,397.69
(=) Cash Retained (M)988.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)477.16298.22178.93
Cash Retained (M)988.10988.10988.10
(-) Cash Required (M)-477.16-298.22-178.93
(=) Excess Retained (M)510.94689.87809.16
(/) Shares Outstanding (M)1,048.921,048.921,048.92
(=) Excess Retained per Share0.490.660.77
LTM Dividend per Share1.331.331.33
(+) Excess Retained per Share0.490.660.77
(=) Adjusted Dividend1.821.992.10
WACC / Discount Rate7.49%7.49%7.49%
Growth Rate5.50%6.50%7.50%
Fair Value$96.29$213.32$452.34
Upside / Downside775.39%1,839.29%4,012.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,385.782,540.862,706.022,881.913,069.233,268.733,366.79
Payout Ratio58.58%64.87%71.15%77.43%83.72%90.00%92.50%
Projected Dividends (M)1,397.691,648.181,925.342,231.562,569.462,941.863,114.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.49%7.49%7.49%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,518.891,533.291,547.68
Year 2 PV (M)1,635.111,666.261,697.70
Year 3 PV (M)1,746.511,796.641,847.73
Year 4 PV (M)1,853.201,924.471,997.78
Year 5 PV (M)1,955.342,049.792,147.85
PV of Terminal Value (M)46,064.3648,289.2850,599.36
Equity Value (M)54,773.4157,259.7359,838.09
Shares Outstanding (M)1,048.921,048.921,048.92
Fair Value$52.22$54.59$57.05
Upside / Downside374.72%396.27%418.61%

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