Macau Property Opportunities (MPO) is showing no signs of being affected by the gaming slowdown in Macau or the property correction in China. Its portfolio was marked up 15.8 per cent over the year, driving strong growth in net asset value (NAV) per share.
The fund's largest asset by far is The Waterside, a tower in an ultra-posh housing development called One Central Developments. Occupancy reached 86 per cent by end-June, up from 69 per cent six months before, helped by the launch of eight premium suites in February. The $180m (£110m) asset rose by a modest 6 per cent in value over the year, but Tom Ashworth, director of the fund's manager - Sniper Capital - says rents are rising faster, so growth could accelerate. The portfolio's other properties all posted double-digit growth - including a big mall development that's being delayed by Macau's Byzantine planning process.
Mr Ashworth says he won't invest in new projects unless they offer returns in excess of the 41 per cent discount to NAV at which Macau Property's shares currently trade. Some 800,000 shares were purchased and cancelled during the year, too.
Broker Liberum Capital expects adjusted NAV of 208p for 2013 (from 194p in 2012).
MACAU PROPERTY OPPORTUNITIES FUND (MPO) | ||||
---|---|---|---|---|
ORD PRICE: | 109p | MARKET VALUE: | £109m | |
TOUCH: | 109-110p | 12-MONTHHIGH: | 120p | LOW: 99p |
DIVIDEND YIELD: | nil | TRADING PROP: | $64.9m | |
DISCOUNT TO NAV: | 41% | |||
INVESTMENT PROP: | $225m | NET DEBT: | 30% |
Year to 30 Jun | Net asset value* (¢) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2008 | 281 | -17.8 | -16.9 | nil |
2009 | 225 | -15.2 | -14.5 | nil |
2010 | 250 | 47.6 | 45.4 | nil |
2011 | 272 | 36.5 | 34.8 | nil |
2012 | 301 | 6.03 | 5.88 | nil |
% change | +11 | -83 | -83 | - |
Ex-div: - Payment: - *With inventories revalued to market value £1=$1.63 |