Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

LH Shopping Centers Leasehold Real Estate Investment Trust (LHSC.BK)

Company Dividend Discount ModelIndustry: REIT - DiversifiedSector: Real Estate

Valuation Snapshot

Stable Growth$22.47 - $39.34$29.66
Multi-Stage$31.62 - $34.63$33.10
Blended Fair Value$31.38
Current Price$12.20
Upside157.20%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.54%0.00%0.720.530.240.090.290.600.560.580.670.25
YoY Growth--35.85%121.05%153.33%-67.03%-52.55%6.56%-2.07%-13.95%165.67%0.00%
Dividend Yield--5.92%5.32%2.09%0.93%2.50%4.66%3.32%3.90%4.75%1.92%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,318.81
(-) Cash Dividends Paid (M)779.34
(=) Cash Retained (M)539.47
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)263.76164.8598.91
Cash Retained (M)539.47539.47539.47
(-) Cash Required (M)-263.76-164.85-98.91
(=) Excess Retained (M)275.71374.62440.56
(/) Shares Outstanding (M)778.06778.06778.06
(=) Excess Retained per Share0.350.480.57
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share0.350.480.57
(=) Adjusted Dividend1.361.481.57
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate1.49%2.49%3.49%
Fair Value$22.47$29.66$39.34
Upside / Downside84.17%143.11%222.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,318.811,351.591,385.181,419.621,454.901,491.071,535.80
Payout Ratio59.09%65.28%71.46%77.64%83.82%90.00%92.50%
Projected Dividends (M)779.34882.25989.801,102.161,219.481,341.961,420.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate1.49%2.49%3.49%
Year 1 PV (M)811.86819.86827.86
Year 2 PV (M)838.16854.75871.52
Year 3 PV (M)858.83884.47910.61
Year 4 PV (M)874.43909.41945.43
Year 5 PV (M)885.48929.97976.24
PV of Terminal Value (M)20,331.9621,353.6122,415.93
Equity Value (M)24,600.7125,752.0726,947.57
Shares Outstanding (M)778.06778.06778.06
Fair Value$31.62$33.10$34.63
Upside / Downside159.16%171.29%183.89%

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