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Xinyuan Real Estate Co., Ltd. Message Board

  • marcino3000 marcino3000 Sep 14, 2013 2:04 PM Flag

    Reno properties

    Below is an older article from the Tahoe daily tribune dated Sep 2012. It's old, but gives a good idea about what XIN is up to in Nevada. Reno has seen a 25% increase in real estate prices since last year and if the stock wouldn't be such a POS and the company had a functional IR and PR department we would'nt have to guess so much about why they are borrowing more money. The need $US to build in NY and Reno, that's all.

    Chinese development company readies plans in northern Nevada
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    Jackie Zhang didn't stay up late crunching the numbers before he decided that China's Xinyuan Real Estate Co. Ltd. should pay $7.4 million for a portfolio of residential properties in northern Nevada.

    "I'm not a Wall Street guy. Sometimes you judge an opportunity by instinct," says Zhang, the anything-but-reserved managing director of the commercial property department for the Beijing-based company.

    His instinct, later supported by close financial analysis, led Xinyuan to purchase a portfolio of 325 finished lots and 185 acres of raw land across northern Nevada.

    The properties, which had been owned by Wells Fargo Bank, extend from Wingfield Springs to Washoe Valley to Dayton.

    The acquisition, which closed during the second quarter, marks the first significant foray into U.S. markets by Xinyuan, a $1.4 billion (assets) company whose shares trade on the New York Stock Exchange.

    Zhang, a 34-year-old graduate of New York University, had been traveling the United States from San Diego to Washington, D.C., to Maine in search of residential development opportunities for Xinyuan.

    At the invitation of Tom Gurnee, a northern Nevadan who serves as chief financial officer of Xinyuan Real Estate, Zhang included Reno in a visit in the autumn of 2011.

    Leaving his downtown hotel room at 2 in the morning, Zhang saw vibrant nightlife, young people on the streets and busy restaurants a big little city.

    In the subsequent couple of days, he also was struck by the openness of northern Nevada residents and the region's clear skies and clean water.

    Side trips to Virginia City its Chinatown rang a particular emotional chord with Zhang and Lake Tahoe helped seal his commitment to the region.

    "I have to follow my heart," Zhang says.

    What's next for the company in northern Nevada?

    Lou Borrego, a longtime residential developer in the region who's working closely with Xinyuan Real Estate, says some pieces of the northern Nevada land portfolio are likely to be sold to other developers.

    Zhang says the company expects to move relatively quickly to begin development of upscale homes in the Franktown area of Washoe Valley.

    Along with American buyers who want homes near Lake Tahoe, Xinyuan Real Estate will market the Washoe Valley properties to wealthy Chinese who want an American home.

    That's a growing market, Zhang says, and buyers are likely to be attracted by northern Nevada's proximity to the international gateways of San Francisco.

    Other potential buyers, he says, will include Chinese entrepreneurs who want to take advantage of the U.S. government's EB-5 program, which provides visas to foreign investors who create new companies with at least 10 jobs.

    The company is looking for other residential land in northern Nevada to add to the portfolio it acquired earlier this year.

    While its first focus in U.S. development is likely to be the luxury residential market, Xinyuan was built in China as a builder of apartment complexes sold to middle-income consumers in second-tier cities.

    Zhang believes that residential development in northern Nevada potentially could draw big investments maybe $100 million at a time from Chinese investors.

    And he expects to be in the forefront of that deal-making.

    "I want to be the first Chinese mayor of Reno," he laughs.

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    • If I remember right they sold half the RENO property for a 100% gain according to the last call. Here's a few of my old notes It also signed a five-year management consulting agreement with IBM to help improve its internal process and mechanism.
      ------In addition, XIN has over $700 million in projects under development.
      ----I see the US purchases in California ,Reno, and New York in part to "legitimize" their company in the eyes of investors and tenants. -- These bargains won’t last forever. ----- Dirt bottom valuations and dividends are hard to find. --- Blew away guidence by 80% top and bottom line growth !!! – . -- Demand has been improving our domestic projects. they doubled their money in RENO. ---The average selling price per square meter increased to percent our last quarter. Superior top and bottom line growth over the years .. ---------- The companies great DIV and return is easy money tell the price appreciation in the PPS === Yahoo has them with a 10$ book and PE under 2 Market Cap ( 362 million) with cash of 642 million..... This company is FREE!!!!!
      Price/Sales (ttm): 0.38 Price/Book (mrq): 0.43
      -----China's property market demand is stable in the fourth quarter as we expected. -----While economic uncertainties and stricter purchasing controls remain possible for the China market, we believe the housing market situation is healthy and we intend to continue to develop projects at stable pace to meet continued market demand.
      -----Contract sales and net income are exceeding our previous guidance. Total growth for all sales increased 19% over the same period last year to 133,000 square meters and our average selling price per square meter increased 5%.
      ----------all but four of our 11 active projects this year are 90% sold.
      -------China projects and the U.S. GAAP full accrual method for USA projects totaled $263 million versus our Q4 guidance estimate of just $140
      ---------Fourth quarter gross profit totaled $88 million or 33.4% of revenue
      ------Net income in the fourth quarter totaled $33.6 million
      -----We sold seven parcels of a total portfolio of 12 parcels of land in the Reno, Nevada area which was acquired from a major bank in the second quarter of 2012. 2012 proceeds of $8.3 million exceeded the $7.4 million purchase price of the entire portfolio
      -------The Lenox property in Irvine, California consisting of 15 luxury condos has not been actively marketed yet although we do have one unit in ESCO, two additional offers. The project will likely be accurately marketed in the second quarter of 2013.
      -----------Williamsburg, Brooklyn, New York. Work on the Brooklyn, New York project has begun.
      --------$642 million CASH as of December 31, 2012
      ----------the company made payments of $30 million related to the Suzhou land acquisition, $133 million on the Beijing land acquisition
      set records at Xinyuan. Contract sales for the full year 2012 at $836 million rose 10% over 2011. Revenue totaled $915 million in 2012, up 33% from 2011. Net income topped to $157 million, fully 54% above 2011.
      ----WE set records at Xinyuan. Contract sales for the full year 2012 at $836 million rose 10% over 2011. Revenue totaled $915 million in 2012, up 33% from 2011. Net income topped to $157 million, fully 54% above 2011. Beat guidence by 80%
      ----OUTLOOK--For the full year 2013, contract sales were expected to reach $830 million. Revenues, that’s in a range between $750 million and $775 million. And net income should be in the range of $90 million to $100 million, perhaps more.
      We are looking at tremendous growth from second half of 2013 onwards. We are very under valued
      -----We are trading at a huge discount to book, XIN plans on talking to institutions at the ROTH Conference and go to many more.. They will try to increase the PPS and companies value . .05 cent dividend FEB 28th 2013

    • To be clear the question is why do they borrow money when they have so much cash?? The only answer I've heard other than questionable accounting is that there are restrictions on taking cash out of China.

      Sentiment: Hold

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