Strategic PM’s Post

What I learned today at ICSC: - tenants want deals - tenants are starting to give on terms in order to get deals (lease term or yield on costs) - land is still overpriced - developers no longer arguing on cap rates today - nobody thinks cap rates will drop in ‘24 - most are optimistic And the best thing we heard: Data is the way you differentiate.

SLB Announces Third-Quarter 2024 Results • Revenue of $9.16 billion was steady sequentially and increased 10% YoY. • GAAP EPS of $0.83 increased 8% sequentially and 6% YoY. • EPS, excluding charges and credits, of $0.89 increased 5% sequentially and 14% YoY. • Net income attributable to SLB of $1.19 billion increased 7% sequentially and 6% YoY. • Adjusted EBITDA of $2.34 billion increased 2% sequentially and 13% YoY. • Cash flow from operations was $2.45 billion and free cash flow was $1.81 billion. • Board approved quarterly cash dividend of $0.275 per share. #slb

📊 Decoding #11UA Valuation: #Probability #Weighted Expected Return Method 📈 In the realm of financial analysis, the #11UA #valuation method stands out for its robustness and ability to provide a nuanced view of investment opportunities. Let's take a closer look at how the #probability-weighted expected return method underpins the 11UA valuation approach. 🔍 Step 1: Identify #Potential #Future Outcomes : List all the possible outcomes for the investment. Each outcome represents a different scenario that could occur in the future. 🎲 Step 2: Assign #Probabilities: Determine the probability of each outcome occurring. The probabilities should sum up to 1 (or 100%). 💰 Step 3: Calculate the Weighted #Expected Return: Calculate or estimate the return associated with each outcome. This could be based on historical data, market analysis, or other relevant information. 📊 Step 4: #Interpretation Matters: The weighted expected return offers a holistic view of the investment's potential value, considering both outcomes and probabilities. 🚀 Additional Notes: #PWERM is a versatile approach adaptable to diverse valuation needs. However, its accuracy hinges on the quality of underlying assumptions and estimates. As with any method, it's crucial to recognize its limitations and complement it with due diligence and other valuation techniques. For #Example- Current Price share of ABC Pvt. Ltd is Rs.100. Scenario A: Share price was increased by 15% with a probability of 60% Scenario B: Share price decrease by 5% with a probability of 40% Return Probability Expected Return 15% 0.6 9% -5% 0.4 -2% Total 7% FMV= Current Share Price + Overall Expected Return = Rs.100 + Rs.7 (100*7%) =Rs.107 per share DLS & Associates LLP Sumit Dhadda Harsha Ramnani CA. Neha Bhandari CA Divya Dhadda

Understanding Net Present Value (NPV) and Why It Matters for Investment Decisions Net Present Value (NPV) is a crucial financial tool that helps evaluate the value of future cash flows by: • Discounting them back to today’s value using a chosen rate of return • Accounting for the time value of money and investment risks Here’s why NPV is important: 1️⃣ Objective Comparison NPV allows you to compare investment opportunities on a consistent basis, regardless of when cash flows occur. 2️⃣ Reality Check By considering inflation and the opportunity cost of capital, NPV provides a more realistic view of potential returns. 3️⃣ Clear Decision-Making A positive NPV signals that the project is likely to add value, while a negative NPV suggests a re-evaluation or deeper analysis is needed. Basic NPV Calculation • Net Inflows: Calculate the difference between the expected inflows and outflows. • Terminal Value: Often estimated using the Gordon growth model. • Discounting: Apply discount rates for each year. • Present Value: Determine the present value of each year’s cash flow. • NPV: Sum the present values of all years, including the terminal period. Considering Different Scenarios To ensure your decision is robust, build a sensitivity analysis to understand how NPV changes with different assumptions, such as: • Discount rate • Long-term growth rate of cash flows This will help you evaluate risk and make more informed decisions on your investments. #Finance #NPV #InvestmentAnalysis #FinancialModeling #BusinessStrategy #CashFlowAnalysis #FPNA #CA #CFA #Analysis

Financial Viability Appraisals (FVAs) How should costs be defined for the purpose of viability assessment? Read more in the link below or discuss with Jonathan Purcell https://lnkd.in/ghmWePwZ Find this article on the Greater Manchester Chamber, UK website #gmcc #propertyandconstruction #membernews

Most MSPs focus on Cost-Per-Acquisition (CAC) instead of what really matters: Life Time Gross Profit (LTGP).

Internal Rate of Return (IRR) Calculator & Formula‏is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis

Poole Dick - Financial Viability Appraisals (FVA's) The landscape of appraisal is changing and so should be the mindset. A greater number of schemes within the dataset provides an easier route for appraisal submissions, rather than having to engage consultants to prepare cost estimates. Even the most optimistic of us would agree that this will not happen overnight, and the challenge is clear and present in providing build costs that are representative of comparable schemes. Read more: https://lnkd.in/ghmWePwZ #financialviabilityappraisals #constructionmanagement #constructionindustry #gmcc #propertyandconstruction

IRR (Internal Rate of Return) V/S WACC (Weighted Average Cost of Capital). 💡 Internal Rate of Return (IRR) 💡 • Represents the rate at which the net present value (NPV) of a project is zero. • Used to assess the profitability or potential return of an investment. • A higher IRR indicates a more attractive investment opportunity. • Does not consider the risk or cost of capital directly. • Can be calculated for individual projects or investments. • Assumes reinvestment of cash flows at the IRR itself. 💡Weighted Average Cost of Capital (WACC)💡 • Represents the average rate of return required by all of a company's capital providers (equity and debt). • Used as a hurdle rate to evaluate investment projects. • A lower WACC makes more projects viable as their returns are more likely to exceed the WACC. • Consider the risk and cost associated with the company’s financing sources. • Reflects the company's overall cost of capital, not specific to individual projects. • Assumes that all projects have the same risk as the overall company. #IRR #WAAC

Cash-On-Cash Returns (CoC) vs. Internal Rate of Return (IRR) CoC and IRR are two key indicators that real estate investors consider when evaluating a potential investment opportunity. CoC represents the annual return on the amount invested. If you invested $50,000 and you receive $4,500 in Year 1 your CoC is 9.0%. IRR is the annualized rate of return on investment, taking into account both the annual income generated by the property and the profit realized upon its sale. Example: You invest $50,000 and your CoC return is $4,500 (9.0%) each year for 5 years and you make an additional $30,000 in profit when the property is sold. Your IRR will be 16.4%. #commonmetrics #soaringcapital #multifamily