George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Is it any wonder that the UK market is so undervalued when brokers can't even be bothered to value Uk companies relative to their overseas-listed counterparts? Jefferied have just cut their target to 810p this morning but there is absolutely no way in the world that Jefferies, or any other broker for that matter, would ever accept a low-ball offer of 810p for SAFE. They are completely adrift and totally incapable of determining the value of anything. UK brokers might as well shut up shop now!
LOK this morning announced a recommended cash offer of c£378m (£11.10p per share) from Shurgard who are apparently the largest self-storage operator in Europe. Based on LOK's latest available accounts to 31 July 2023, that represents c1.64x of LOK's net assets or c1.53x of LOK's adjusted net assets.
Applying the same net asset multiples to SAFE's net assets as at 31 October 2023 (c1.93bn), you'd get a current market value of between c£2.95bn and c£3.1bn or between c£13.50 and c£14 per share!
Interestingly LOK is currently trading above Shurgard's offer price which seems to suggest that the market thinks that its offer is a bit low (although how the market suddenly arrives at that conclusion when it was only valuing LOK at c£8.70 at the beginning of the week, before the rumours seem to have started to circulate, is somewhat amusing) and that a competing offer might yet emerge.
Alessandro, SAFE's propertie are marked to market, so it's quite feasible that its profits can exceed its revenues (when valuations are rising)
Safestore quick ratio is 0.5. Just saying.
Slightly nervous about occupancy rates, but underlying earnings encouraging, and debt levels sensible. A bit sorry I didn't have the courage of my convictions last October but, given rates seem to have peaked, still worth a small punt IMO.
Expansion abroad will see revenues rise ,together with profits....A very profitable business set for even bigger profits going forward......In my opinion they have an open goal to score.....
How can Safestore make more profit than revenue?
Lowly rated business...set for expansion and increasing profits....I like it....
NM
Has anybody got any thoughts on the upcoming interim dividend? As a REIT, it's my understanding that SAFE has to pay out at least 90% of its UK Adjusted Diluted EPRA EPS as dividends to avoid the requirement to pay UK corporation tax.
I've had a look at the results for FY22, FY21 and FY20 and, based on the Adjusted Diluted EPRA EPS disclosed in the accounts and deducting the estimated non-UK Adjusted Diluted EPRA EPS (which I've estimated based on the disclosed overseas tax charges and the underlying rates of tax thereon), I'd estimate that the UK Adjusted Diluted EPRA EPS in those 3 years would be c41.9p, c27.5p and c23p respectively and that 90% thereof would approximate to c37.7p, c24.7p and c20.7p repsectively. By comparison, over the same 3 years, SAFE has paid PIDs of 22.45p, 25.1p and 18.6p respectively.
Therefore, just based on those 3 years, there would appear to be scope to pay a c17p PID plus whatever UK Adjusted Diluted EPRA EPS is earned in H1 FY23!
I am somewhat flumoxed as to why there was the need to pay only 25% of FY22 interim dividend as a PID and perhaps SAFE has overpaid PIDs in the periods prior to FY20 but I'd be interested if anybody has any thoughts. Obviously my calculations could be wrong but, on the face of it, I don't think my assumptions are far off the mark.
I note that brokers have pencilled in a full year dividend of 33.31p for FY23 but that looks (very) light based on the EPRA EPS the UK business is likely to generate and the need to comply with the REIT distribution rules.
I'd initially penciled in an interim dividend of between 10p (for prudence) and 12p but I'm beginning to wonder if it could be more. The distribution of 90% of SAFE's UK EPRA EPS is the minimum distribution that SAFE needs to make. It could opt to pay more but in the current environment would be unlikely to do so.
PS. I did wonder whether SAFE's insurance and other non-storage earnings should be stripped out but it doesn't pay any UK corporation tax on these earnings and so, absent any brought forward losses, this ancilliary UK earnings would appear to be subject to the same REIT rules as its self-storage earnings.
Not everyones cup of tea, but a very good write up: https://www.investorschronicle.co.uk/news/2023/01/17/safestore-remains-secure-investment/
Perhaps most interesting is that last year premium to NAV was 208, now it's 22, a historic low.
Good times coming for the share price I think.
Got 1000p results were strong. More about showing growth in what was and awful year!
I think when the market gets it’s head around that this could go higher. A gradual climb to 1200 looks likely on TA.
I will be slicing some later as have other places to invest. This was always a 10 preventer for me which is akin to getting a good divi over a short period of time.
Bets to all.
Usual caveats
Trek
Looks like pretty stellar results to me... But what do I know?
Fingers crossed for good news - not long to go now.
It's very quiet in here, I guess this is too boring a share to be invested in.
I bought some a few days ago in advance of the results, which I expect to be stellar. I think the last reported year was record results, I think this report will be the new record results, and I don't think it's going to slow down just yet.
On the bounce this one. Looking for £10 may even get to 11 if momentum continues.
Bought at a tad over 9 for a quick return.
TA soooo strong!
Usual caveats
Trek
Another Geoage III... 'king madness. INVP is another on the ropes today for similar (non) reason. Some kid banker ****ed-up his calcs again.
One minute we're looking as if we are going to breach £14 the next minute HSBC issue a hold recommendation (from buy) with a higher target price and we are down 4.6%. Bonkers!
next thursday
Brexit caused a massive increase in storage across the country last year with companies trying to mitigate the inevitable supply issues.
I'm not sure if this is still the case but the manager of a local storage company told me he couldn't keep up with demand.
This was a share in the Winter Portfolio of Interactive Investors. It may be a dull business but it certainly paid off.
what a dull business but it seems a safe haven by the rns though lacking in future planning
Just stumbled into this share... I'm guessing that the pandemic and lockdowns have had very little effect on storage of personal and business effects. I can envisage some downsides and upsides but can easily imagine those balancing out. The SP suffered the same panic reaction as every other share back in March, but updates from the company have been showing steady or growing revenue. In the current environment, such a share (also with a reasonable dividend) is ideal to hold in a portfolio. I need to do a bit more research, but I like the look of this.
I would have thought that the current risk of mass business closures would have hit the sp of Safestore but it seems to be rising everyday. Especially as the main reason behind Safestore's growth before Covid-19 was businesses requiring more storage in because of Brexit. Can anyone help me understand this better?
Thank you
tradertimenow your on the wrong board