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At £3.4m in the books, so in theory a hefty profit.
So shares acquired. I did try to get some on the update then they jumped and the jump made me dither. Now I have got some even cheaper.
So what is going on. The discount is massive so why isn't everyone buying tenners for a fiver. Inflation, recession, the spread, 50% LTV, family control or is that more lower liquidity issue.
I like the family control. If they look after themselves, with long term goals we'll we can ride along with them. It will be interesting to see what level the next dividend is announced at. I'm expecting another 2.5p same as last.
Operations should be more normal, less issues, share buyback effect kicking in. (Should they be restarted?) or debt levels reduced.
The only real negative for me is the relative low level of divi yield which I hope will be corrected in a year or two.
A contract note has been emailed so I assume I've got my extras.
Tried to buy some more but cant get a live price.
Stuck in a limit order, lets see what happens.
Big jump on the results as expected. Bump on divi but with caution sited.
I suspect there will be more to come as the trading continues. Trying to forecast the future divi, 2.5 twice, reading between the lines or maybe 6p total. Speculation of course rather than anything firmer.
Markets on the up too generally so maybe that helps too
I added more of these today. Main reasons are, an update due soon which should show another improvement. Im also expecting a bump in the divi. Its also still on a large discount to NAV.
The yield is still quite low but I think it will revert over the next two years to the 5% region. As and when it does the SP should follow.
Another 50k so might get interesting
86k of shares bought back yesterday. A bit more meaningful than the last almost none existant share buyback.
Was this a one off or a move towards something more meaningful.
Town is running to stand still. Too much short term debt that needs to be refinanced asap to give some breathing space. Otherwise a drip drip of property sales will be necessary.
Yes I agree...why haven't they released an RNS to explain why they were not published on the date they stated?
Surely if they delay the results, the market has to be notified. Answers on a postcard.
were supposed to be due out today??
Not really inspiring update but traveling in the right direction. NAV steady collections improving but still selling so income will be hit and assets down.
I suppose debt and LTVs will look a tad better. The buyback didnt amount to much.
The buybacks didn't amount to much and I'm not sure why they have stopped or paused. I think it was more the drop in income rather than the loan levels being the issue. Lots of REITs have LTV of 40% although lower would be better.
I'm not sure they want to take it private or could afford it. I liked the fact they had a controlling interest and skin in the game. Hopefully this will drive them to do long term interest than short term gains.
The reason there is such a large discount to NAV is coz there is too much debt and that when it comes to renewing will be costly to reflect the risk. Buybacks just exacerbate this exposure. Only hope is for the Ziffs to take Town legally private, rather than the current position of being private in all but name.
With a dividend Declaration date due for 21st, Im hoping that there will be an improvement in what is announced. The current yield is a lowly 2.6%. based on the x2 1.75p payments. Previously the NAV was reported at 286 so currently the price is at a substantial discount. They started a buy back program, understandingly, although I'm generally against companies doing this as they often do it at market highs like PNN. Here it being done only if they are accretive on a per-share net asset value basis.
Currently the price is below the buyback pricing so I have added a few more with the expectation that trading and dividends will improve. Car parks should be reopen and the retail side open. I suspect the dividend rise Im expecting might be held a little longer if the buyback has more time to run but should be good for next year. Pre pandemic divis were 11p.
Hopefully adding before the crowds come back
This came up on my radar again as the price dropped below 130p. Unfortunately the spread is 11.5p on a 130/140p share price. I'm not sure why the spread is so large, I seem to remember 3 or 4p last time ish.
It has put me off again!
I noticed the jump in share price that disabled my limited buy order. I wondered who the buyer was.
In fact its TOWN buying their own shares!
Up over 13% at one stage today on little or no news from what I can see. Closing +10%.
Its done this a few times in the past few months looking back. Cant remember a reason for those jumps either. Last traunch indicating a sell now but I will hang on hoping that the dividend recovers in time. Car parks should reopen soon and retail will rise or fold.
Retail and leisure now accounts for 47% of our portfolio, down from 50% a year ago and 70% in 2016.
I wouldn't say half is low and gearing is/was 118%
Market seems to like the rent update
..is lowly geared mainly non retail property companies...like TOWN
"lumbered with an expensive debenture" and "address this albatross " This contrasts with the comments from the 2015 results :-
"I would like to pay tribute to Howard Stanton. Howard joined us in April 2009 when we were facing some of the most challenging financial conditions the market has known and he has been a continuing support through those difficult times. He played a major role in the tender offer and exchange of our mortgage debenture which has been one of the most significant deals for the success of the group over the last 10 years."
During financial crisis = Good! During Covid = Bad. I suppose what is done is done and they have to manage the plates spinning right now. Will the improving situation save the day? Well it cant hinder although it might revert back to what it was. I suppose stopping evictions for longer is not going to help landlords but maybe some help might be forthcoming in newer policies to be defined. It does seem to be a case of pushing the problem on but it has to stop somewhere. Will it get pushed onto lenders next.
Town is unfortunately lumbered with an expensive debenture through to 2031. An equity raise would do nothing to address this albatross other than make the covenants more comfortable. Inflation will eventually come to the rescue but until then they will have to spin the various plates to keep afloat.
So after the RNS regarding properties sold, it looks like cash and debt ratios are the priorities looking ahead. To that aim the divi has finally been cut after decades of never cutting (Just like Shell) Its over 50% from 11.75 to 5.
In fact most of the metrics were poor, mainly due to covid issues and it has a snowballing effect. It not all bad news, there is a glimmer of hope. Car parks are now open and the hotel is also up and running albeit at lower levels. Hopefully retail is picking up too. Spike II might put things back again though.
So rental income is going to be down going forward and there is a pipeline to supply so being pulled in many directions all at once. Makes sense that others, such as SREI has been reducing their LTV much in advance although they started this pre covid. Maybe a lower LTV rate going forward might be more prudent but they need to get back to the old levels first.
So its going to be a balancing act spinning many plates. I wonder if some new equity might be on the cards. I thought that previously with regard to the pipeline but now they have even less cash. So how long before getting improved divis? I suspect that it might be a few years away and what does that hold for buying decisions going forward?
Additionally the George Street development has been stopped at a cost/loss of 800K. What now? Can it keep goings as is/was?? Not much hope of a quick increase to the dividend then going forward. I assume more sales are going to have to happen thus the snowballing effect continues but they have to protect the down side. I also note that JD sport and boots get a kicking!
Looking at the market, is not fallen drastically. In fact it risen over today but yesterday the market was knocked on its head quite hard so maybe a bit of relief going on.
I must agree with everything said
As property companies go there are a lot worse
I also have topped up and will sit on these
gla