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To provide shareholders with stable, long term, inflation-linked income from a portfolio of Social Housing assets in the UK with a particular focus on Supported Housing assets.
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Good to see Edison's latest report. Just shows how undervalued SOHO is currently at 50% of NAV and a dividend already at around 9.3% and set to be increased this year. Looking good.
Ex-dividend today. I will be reinvesting the money in new shares when it is paid on the 29th March.
70p here we come!
Average true range is, 1.64, and equity spread is, 1.839. The ATR, represents the average equity movement over 14 days. It makes sense , when calculating a stop level, to ensure that normal daily movement, such as the spread does not activate the stop order. A multiple of the ATR, from the most recent sp, is advisable , example 2 x ATR, or 3x ATR. The RSI(Relative strength index), it provides decent, timed trend signals, currently above 50(trending up). If the RSI, falls, below 50, sell, but re-enter, if returns above 50, within a few days.
2 of 2
.....for the foreseeable future.
The key to the investment case here, is the legislative requirement for SOHO's provision, and the shortage of such. A requirement which surmounts any govt fiscal restraints in wider housing provision. The index linking of the rent roll is key, the property valuations (beyond LTV convents which they are nowhere near) is almost an irrelevant distracting sideshow.
A tremendous long term income yielding stock - and that rate beast that actually enriches society and not just shareholders like me.
Excellent results, and frankly nothing more or less than I expected. As for the detailed RNS, well, anyone that takes the time to read it all will garner all they need to know as to whether to invest (or not). If you absorb the details, you will see what a secure investment this is - frankly an indexed link licence to print profits.
Debt - the duration and rate are extremely advantageous. They are quite clear on their desire to leverage debt, and to be paying a long duration fixed 2.8% whilst receiving an inflation linked upwards/plus income well in excess of such, is always going to provide security, and income. Cash at hand alone should be earning more than the debt rate.
Rent roll - a rent roll of £40m against a debt cost of £7.4m clearly highlights the disconnect here. That the 2 problematical housing suppliers equate to 15% of properties, shows that they can absorb problems with individual providers, and also the upside if positively managed/resolved.
Property value - interesting to note the commentary that the small selective sales were to reaffirm the valuations, being around book, and that there is no intention (need) to make further sales. Also interesting that against mkt cap of £240m £75m is unencumbered.
Property valuation/NAV discount - the doldrum sentiment currently prevelant ignores that SOHO have no need (and I hope no intention) to sell; they have 9 years to await stabilisation/appreciation of property prices, and I don't think there is a window that long in recent memory where they haven't appreciated. I believe the NAV to be true, and for the patient this will manifest itself in the SP narrowing towards it.
EPC work - the way they have initiated a small scale trial/rollout of upgrading EPC ratings is astute, learning what works on a small scale whilst building relationships to efficiently deliver across their portfolio. As well as complying with legislation, this is cementing their good owner status with housing provision providers, and cementing those relationships. And yes, maintaining the value of the properties.
Specialised sector provision - the security of their focused proposition, ergo security of income, is highlighted by their mentioning that 2 of their contracts, were with local authorities that were effectively in bankruptcy special measures, but the regulatory requirement ensured provision, hence rents, were undisturbed. The specialised housing they provide, is in demand, and short supply, and the regulatory protection of provision is the bedrock to SOHO that seems misunderstood/missed. The provision must be provided by law, irrespective of whose name is above the door. The tenant housing provider may change/default but the need/legal requirement remains.
Dividend - an index linked rising rent roll income against a fixed low debt cost is always going to support the dividend, and at current SP, with thier reaffirmed progressive dividend policy, will be yielding 10%+ for the foreseeable fu
I took my first position (for long term divs) here yesterday after reading the results. As I said been on my watchlist for a longtime.
Symmetry sp target 73.4, for 14/4/24. Expect possible resistance from overhead supply, from previous trading up to 65. Both SOHO and sector charts, have broken above down trendline, which is bullish. DYOR.
I particularly like the 2.75% fixed debt for around 10 years, covering 100% of borrowings. Obviously lower interest rates may help NAV, but it's really rent that is most important now. Growing at 6.5% is solid.
Some risks in the sector, but feel they are well blown out of proportion here.
I also added this morning, but not as much spare cash as some here!
GLA
Agreed, after today's RNS and now that interest rates have probably peaked the NAV discount looks well over done. I topped up with £40k earlier on today as the 9% divi is better than keeping the money in the bank. GLA
No idea Panda....But load up if you can afford it no reason why this can't push up into the 80's or 90's...
Nav over £1.13
Why is it languishing in the 50s?
Looking pretty solid and hopefully interest rates will come down slowly now which will support property values. Looks a decent bet and with excellent dividend returns (over 9%) paid pro rata quarterly this an attractive investment.
A well-written ,informative report.Positive detail on MySpace in the next few months and a fully covered dividend should underpin a gradual share price rise.
Can see this heading back up to the 70p range now GLA
Good update - nice to see that the 9.7% divi is secure and looking good going forward
It’s the only one in my property watchlist that’s still below the added price. When I added it the price was 64p. I feel it maybe time to take a position. I’ll read through the results, but as you say looking good (better).
Dividend now fully covered,and they expect cover to increase over the coming year.
A lot to read, but looks good to me.
Tomorrow perhaps? Should be soon.
Are we heading back to the 60s with the prospect of future dividend increases?
Are we headed back to the 40's with a dividend cut to 4.7p in the offing, as flagged up by the BOD?
I've bought back in today after a break and just seen the RNS of 13 November.
£31 million cash and Parasol paying all rent due - I'm guessing that doesn't include the arrears yet.
They are moving certain leases away from MySpace to other providers which I think is excellent news.
Personally I would think a dividend cut is very unlikely as they have the 7£ million property sale money and should have more income from rents with the rent increases in HY2.
Hopefully they've started getting rent arrears out of MySpace and Parasol. If not surely it's time to move the leases on to other providers, especially MySpace.
If they have started getting the rent arrears results should be very good.
Think that is wrong company, thought an update was due today
Soho House & Co Inc. Announcement
02/09/2024
LONDON--(BUSINESS WIRE)-- Soho House & Co Inc. (NYSE: SHCO) (“Company”) today issued the following announcement.
Soho House & Co Inc. fundamentally rejects the recent report published by GlassHouse Research, which contains factual inaccuracies, analytical errors, and false and misleading statements, all designed to adversely impact the Company’s stock price for the benefit of the short-seller. The Company was not contacted for any comment or clarifications prior to the report being released. The Company is confident in the strength of its business and is focused on executing its strategy.
The Company will be reporting its 2023 results on March 6, 2024. At this time, the Company expects its operating results to be in line with the guidance issued on November 10, 2023. In addition, on March 6, 2024, the Company will issue full year guidance for 2024 which will demonstrate the expectation for continued growth in membership, revenues and Adjusted EBITDA, as well as positive Cash flows from operating activities.
Members of the Board and their affiliates (collectively, the “Insiders”) own 74% of the Company’s common stock outstanding. Since going public but prior to the formation of the Special Committee described below, the Company and Insiders had been active purchasing shares, acquiring 11 million shares, or approximately 6% of the outstanding common stock of the Company at a weighted average price of approximately $6 per share. The Company announces today that the Board has approved a new $50 million share repurchase authorization. As of the last reported quarter-end, October 1, 2023, the Company had $163 million of Cash and Cash Equivalents (including Restricted cash) and an undrawn approximately $90 million Revolving Credit Facility.
The Company also announces that in the fall of 2023, the Board formed an independent Special Committee of the Board to evaluate certain strategic transactions, some of which may result in the Company becoming a private company. No assurances can be given that the Special Committee’s assessment will result in any change in strategy, or if a transaction is undertaken. The Special Committee has engaged legal and financial advisors to assist it with its review. The Company does not expect to make further public comment regarding these matters unless and until a specific transaction or alternative has been approved or the Company otherwise concludes its reviews.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance for the remainder of fiscal 2023 and 2024, as well as statements that include t