Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (GROREIT.BK)

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

Valuation Snapshot

Stable Growth$6.11 - $8.93$7.47
Multi-Stage$10.60 - $11.65$11.11
Blended Fair Value$9.29
Current Price$8.00
Upside16.16%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018
DPS0.00%0.00%0.560.590.570.000.000.000.000.000.000.00
YoY Growth---5.08%3.50%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--6.59%6.70%6.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)256.09
(-) Cash Dividends Paid (M)88.20
(=) Cash Retained (M)167.89
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.2232.0119.21
Cash Retained (M)167.89167.89167.89
(-) Cash Required (M)-51.22-32.01-19.21
(=) Excess Retained (M)116.67135.88148.68
(/) Shares Outstanding (M)315.00315.00315.00
(=) Excess Retained per Share0.370.430.47
LTM Dividend per Share0.280.280.28
(+) Excess Retained per Share0.370.430.47
(=) Adjusted Dividend0.650.710.75
WACC / Discount Rate8.42%8.42%8.42%
Growth Rate-2.00%-1.00%0.00%
Fair Value$6.11$7.47$8.93
Upside / Downside-23.58%-6.60%11.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)256.09253.53250.99248.48246.00243.54250.84
Payout Ratio34.44%45.55%56.66%67.78%78.89%90.00%92.50%
Projected Dividends (M)88.20115.49142.22168.41194.06219.18232.03

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.42%8.42%8.42%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)105.44106.52107.59
Year 2 PV (M)118.55120.98123.44
Year 3 PV (M)128.16132.13136.17
Year 4 PV (M)134.83140.42146.18
Year 5 PV (M)139.03146.27153.81
PV of Terminal Value (M)2,713.122,854.393,001.50
Equity Value (M)3,339.133,500.713,668.69
Shares Outstanding (M)315.00315.00315.00
Fair Value$10.60$11.11$11.65
Upside / Downside32.51%38.92%45.58%

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