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Results are to be issued on 30 September. It is a difficult markewt in which to acheive value - this is one of the few bricks and mortar companies where the share price is actually (Illogically) lower than the NAV by 50% - what a weird market. ! I have a rasonable holding and woul dbe nervous of transferring to anything else at the moment; I have seen holdings in other companies fluctuate by 20% over the last few weeks, this has remained steady. Nerveracking, but if still a good long term hold I beleive. Where else could one go ??
Tomorrow I think ! Still a holder of these -not a large holder -either will kick myself or be pleased not more exposed here. But for the economic crisis would be a clear no brainer and its on record in this thread I went for them earlier but in present times finding good payers without elephant traps turning up is hard work. I shall be artfully looking tomorrow morning !
? the recent share issue was used for a Capex program. Expenses for this company are actually reducing (the asset manager has reduced its management fee significantly). In a difficult sector, this must be one of the strongest companies - also bear in mind that it has assets in US, Germany and Switzerland. The main players seem to be holding on to their shares - me too .
You say 'agreed'! But I am looking for growth in earnings and I only see increased costs. There maybe assets there but if you are printing new shares to pay the dividend how long can that go on. I say weak hold now-there are better places to keep your money but of course if there is a general improvement -it changes. To be fair if you think that asset stripping is OK in bad times -you get your nice divi- and later on the asset value will recover and everything will be fine -it is a view you could take. But if we have QE a weak £ and continuing inflation will we get there ?
Agreed, but these people have to be looked after somewhere and the government's efforts to encourage people to look after their elderly relatives at home isn't working. The care homes are essential, unavoidable and underfunded - unless local authorities are going to make serious moves to cope with this absolute social requirement (very doubtful) then the private sector is here to stay. It is unfortunate that PSPI is bundled into the sector with the likes of Southern Cross - they are totally different animals. PSPI owns the properties and leases them out to operators, occupancy levels are consistenly hgh and the managers have done an outstanding job - I understand Southern Cross leases its properties then operates them itself. The PSPI balance sheet net of debt has assets of £100m+ - the shares are a steal. You will not see any of the significant stock holders selling, it is the very small investor who is being swayed by sensationalist juornalism tarring all these companies with the same brush (rather unfairly in this instance ). I am purchasing more now.
The problem with care homes is that the charges to residents/patients keeps increasing to amounts that are unaffordable for those who pay long term and for the local authorities already cash strapped who have to pay when the money runs out and for the ones on benefit. The rents might be indexed linked but due to the level of inflation due to QE in America and UK - but you cannot get blood out of a stone! I am not so sure that dividends will increase they are already generous particularly with the SP price falls.
I hope the people who are purchasing these shares have enough good sense to HOLD them as a long term investment !
I certainly hope that nobody tries to buy this out unless they are prepared top pay close to NAV otherwise I shall be an extremely unhappy bunny !
I hope you are right ! I am sadly resigned to inflation further out. In America they cannot seem to understand that the reason their housing maket is undeperperforming is that it has in recent years has come as in UK the expectation that you run the economy on the housing market ! The housing market should depend upon the earnings from pretty well everything else to pay peoples mortgages.For those in power money in their bricks and mortar not their currency is their store of value whether left or right.. This company does not depend upon earnings to pay mortgages or consumer demand but rests upon fees ultimately and their rentals are linked to inflation. I only hope the company is not bought out -too cheaply ayt least ! I mark it as Hold because I bought long ago but if you have none they are a good buy because there is a good yield without the downside risks on bonds and preference shares when inflation takes off. If they let inflation take off up to 20% with % rates 8% -10% then we will all have to scratch our heads again !
Isn't income from the German portfolio a relatively small part of the overall income stream? The information distributed with the recent rights issue indicated an increase in the dividend to 7p per share.... Half year results are due out shortly - if there is a duplication of last year's trading activity there will be a significant jump in sp soon.
My only concern with this short term is the recent appreciation of sterling that may affect earnings from Germany. Of course these assets were bought when sterling was high but we have been in a sweet period for the earnings with a very weak £. That is the only negative I can see on safe property investments -at the present time.It suggests that there will be no increase in the dividend. .
The 31/12 annual report indicates 66,808,000 ordinary shares in issue with capital and retained earnings of £103,300,000 - value per share is about 154p The company is audited by PWC and the property portfolio is revalued on a regular basis by an independent valuer (Colliers I beleive). The balance sheet reflects solid assets (no goodwill) which have been conservatively revalued taking into account present property market trends. This share is a steal at today's prices. The share offer which was fully taken up in May indicated a probable 7p dividend for 2010 results i.e. shareholders are getting a 10% return on a 70p share (which has a balance sheet value of 154p). I wish I had more loose cash to invest in this company.
You seem to have done some research. Would you mind letting me know what figure you got for NAV? You mention this is valued at below Assett Value, I thought the same but wondered what value you put on the net assets?
This stock remains a good investment long term. This is on one hand because of the provisions for uprating of both the British and German care home revenues. On the other because theGerman revenues are securedon German assetsthat would survive a breakup of the eurozone. An interestingarticle in the Telegraph today describes the isues being discussed in the German Constitutional Court and thefact that these matters are of very serious concern. The transfers to Greece were contrary to the Lisbon Treaty and the Euro is faces a considerable risk of being dismantled. Well time will only tell and the outcome is a very political matter as well as economic. Southern europe can only go on in the euro with stagnation and pain its peoples will be unlikely to accept. So I am backing PSPI -this stock is undervalued compared with asset values and this undervaluation ought to mean its a very good hold.
According to Barclays information the divi payment is to be made today.
Does anyone know the date of the next ex-dividend payment? I can't see anything on the website. Thx in advance!
Patrick Hall's (Chairman) statement a few days ago indicated that the company was performing as expected, was meeting banking covenants, maintaining conservative leverage ratios and had increased rents on all properties. 2009 year end profits look likely to exceed 2008 where the final diidend was 4p per share (after an interim dividend of 2p). This share is grossly undervalued and significantg share price increases have been seen after the half year and full year results were issued. Get ready for another jum in April when the 2009 final results are released.
Has the market suddenly woken up to the fact that the NAV is about 150p per share and year end to Dec 09 the value of the portfolio has fallen by a mere 0.5%. Oh and they actually pay dividends!!!!
Seem to a sea of blue here! Any ideas?
Has beved very stesdily -with that yield concede with the kind of assets it has that will benefit from future inflation-whilst looking tp add on any weakness am reluctant to sell it.
A strengthening £ recently v euro does not help this company - I am hoping for further cheaper buying opportunities!
A couple of decent sized trades today - looks like the big boys have woken up to the value for money this share is going to produce..
Totally agree. NAV nearly double current price and fantastic yield as well. Come on buyers where are you?
These beauties have gone up 10% since 29 October . . .
Its looking even cheaper!!!!!!!!!!