Mike Kruger of MPK Partners presented his in-depth investment thesis on Boustead Projects (Singapore: AVM) at Best Ideas 2019.
Boustead Projects does the design and project management of Class A industrial real estate in Southeast Asia for multinational corporations in high-value industries; actual construction work is outsourced. Since 2010, Boustead has used its balance sheet to build certain properties, which are then leased to the client. Despite this, net cash is one-fourth of the recent market cap.
The shares recently traded at less than one-third of NAV. Boustead is not a typical family-owned Asian real estate stock that languishes at a discount with no catalyst in sight. Founder FF Wong has delivered a compounded total return to shareholders of 18+% since 2000.
Two catalysts are in place: First, backlog has soared 150+% to all-time highs recently, which should benefit earnings by the June 2019 quarter. Second, Boustead will likely put its owned properties into a REIT (comps at 1.0x NAV of higher) over the next couple of years.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Mike Kruger’s first investment experience was watching his shares of Berkshire Hathaway get cut in half during the tech-mania of the late 1990’s. But he didn’t panic, and today manages a global focused value portfolio of equities and distressed debt in New York City. He previously worked as a former equity and credit analyst at Promethean Asset Management LLC in NYC, and prior to that as a high-yield credit analyst at Liberty Mutual in Boston. He holds a Bachelor’s degree from the College of Arts and Sciences at Cornell University.