RCP: Royal Chartered Properties
Luxury is at your doorsteps.
Total shares: 9,500,000
Prospectus
Company Tagline
Luxury is at your doorsteps.CEO's Real Life Name
David K. ChanCEO's Real Life Location
Austin, TexasBoard of Directors
David K. Chan: Chairman and CEO (SL Name: Kavai Onizuka)Responsible for making investments and development of properties of RCP. Runs small family owned real estate development business in Asia and the US.
David Jung: Consultant
Corporate adviser.
Cash on hand
300000Land owned
262144Tangible Assets
2927500.00Monthly Income
368000Monthly Expenses
215280Luxury Real Estate Investment Fund: Royal Chartered Properties, invest with clas
To investors,Investment opportunities are dwindling in Second Life. However, our experience in real estate development in Second Life remains the same. Royal Chartered is positioned well in this difficult economy to provide shareholders with the best value and returns as possible.
We have been in business in Second Life for over 3 years, making us one of the oldest business institution and most experienced talent in Second Life. We thank you for your interest in our company and hope we are the right decision for your business strategy.
Business Overview
RCP operates island property rentals. We currently own three old tier sim rentals. These islands are leased to operators at a fixed, stable, predictable income.We also have a small investment branch to finance new venture opportunities in the real estate industry.
We are operating as a real estate trust, and 80%-90% of our profits will be distributed as dividends.
We predict our yield would be within the 18-25% range, variable to our annual financial results.
Our book value is approximately 3 million in cash and land assets. This IPO represent a price to book of ~3.15. The premium on the assets is derived from the ability to have a greater profit margin when compared to our industry peers, as well as our high dividend yield, up to 90% and leaving less on our balance sheets.
Our PE is at an estimated 4.1. Far below real-life averages. Investing in ROI provides an opportunity to invest in Second Life real estate, with spectacular real life yields.
Our dividend yields are at 18-25% annually, we are able to provide spectacular cashflow for your investment today. Real life dividend yields usually range from 0 to 6%, thus we are able to provide very competitive and attractive yields for your investments over any real life alternatives.
We also intend to maintain our stock price at our current levels. We intend to use the remaining income to either expand into more sims, or to buyback stocks.
Business Strategy
We have a conservative expansionist strategy. Our margins are very high compared to our peers without any major operating costs. We intend to expand into 10 sims ultimately but only through self financed growth. We do not intend to expand aggressively in the expense of weakening our balance sheet.Our cash reserves post IPO will probably allow us to expand 1-2 more sims. However, all future expansions will likely only originate from profits generated from the firm in the future.
Business Strengths
Extremely low cost and high operating margins: We have the benefits of grandfathered sims, thus, we have a 33% cost saving over our competitors. We also have very little overhead costs and our operating profit margins are nearly 40%, almost double compared to our closest competitors.Our dividend yield is also one of the major focuses of this IPO. At 18-25% yield, we provide extremely great value at affordable price for your investment. This is also a real estate investment fund, thus, our future earnings will also increase your dividend yield as our company grows.
Use of Capital
Funds will be used to prepare for our next phase of expansion.Risk Factors
Linden Lab can alter pricing policy of islands yet again, and this might have impacts on our operating margins.The US economy and SL economy can also play a major component in maintaining our profits' consistency.