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Prime Office Leasehold Property Fund (POPF.BK)

Company Dividend Discount ModelIndustry: REIT - IndustrialSector: Real Estate

Valuation Snapshot

Stable Growth$7.33 - $11.24$9.16
Multi-Stage$16.75 - $18.41$17.57
Blended Fair Value$13.36
Current Price$6.30
Upside112.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-5.72%-0.07%0.770.791.031.051.021.030.931.081.031.01
YoY Growth---3.12%-23.06%-1.69%2.65%-0.96%11.40%-14.19%4.77%2.50%29.88%
Dividend Yield--13.51%12.62%9.22%8.91%9.48%9.07%6.98%7.78%7.70%5.99%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)391.22
(-) Cash Dividends Paid (M)317.69
(=) Cash Retained (M)73.54
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)78.2448.9029.34
Cash Retained (M)73.5473.5473.54
(-) Cash Required (M)-78.24-48.90-29.34
(=) Excess Retained (M)-4.7124.6344.19
(/) Shares Outstanding (M)481.64481.64481.64
(=) Excess Retained per Share-0.010.050.09
LTM Dividend per Share0.660.660.66
(+) Excess Retained per Share-0.010.050.09
(=) Adjusted Dividend0.650.710.75
WACC / Discount Rate6.61%6.61%6.61%
Growth Rate-2.07%-1.07%-0.07%
Fair Value$7.33$9.16$11.24
Upside / Downside16.41%45.37%78.48%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)391.22387.05382.92378.83374.78370.78381.90
Payout Ratio81.20%82.96%84.72%86.48%88.24%90.00%92.50%
Projected Dividends (M)317.69321.11324.41327.62330.71333.70353.26

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.61%6.61%6.61%
Growth Rate-2.07%-1.07%-0.07%
Year 1 PV (M)298.15301.20304.24
Year 2 PV (M)279.69285.43291.23
Year 3 PV (M)262.26270.38278.66
Year 4 PV (M)245.81256.01266.52
Year 5 PV (M)230.31242.31254.80
PV of Terminal Value (M)6,753.517,105.437,471.87
Equity Value (M)8,069.748,460.758,867.32
Shares Outstanding (M)481.64481.64481.64
Fair Value$16.75$17.57$18.41
Upside / Downside165.95%178.83%192.23%

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