Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Strong financial performance EPRA earnings up 45% to £29.6 million (30 June 2014: £20.4 million) EPRA earnings per share up 30% to 14.2 pence (30 June 2014: 10.9 pence) EPRA NAV per share up 20% to 521 pence (31 December 2014: 434 pence) equating together with dividends paid to a total return on opening EPRA NAV per share of 22.1% (30 June 2014: 6.1%) On track to achieve like-for-like rental growth of 3.5% to 4.0% for the full year, up from 3.3% for 2014 Average portfolio yield compressed by 47 bps in the first six months to 5.8% (31 December 2014: 6.3%) and further compression expected over next 18 months Interim dividend increased by 150% to 5.5 pence per share (2014 interim: 2.2 pence). Policy remains to distribute 65% of full-year recurring EPRA earnings by way of dividend each year Excellent progress against strategic objectives 55% of rooms now let through University nomination agreements, demonstrating strength of brand Overhead efficiency measure improved to 40 bps on annualised basis (2014: 61 bps), illustrating continued scalability of platform. On track to hit 25-30 bps target by 2017 Portfolio quality enhanced further through positive progress with ongoing developments and £271 million acquisition by USAF of the high-quality AUB portfolio Planning secured on sites in Edinburgh and Coventry In exclusive negotiations to acquire three development sites with the potential to deliver approximately 1,800 beds for 2018 completion
"The Unite Group plc, the UK's leading developer and manager of student accommodation, will announce its half year results for the period ended 30 June 2015 on 5 August 2015."
Joe Lister, Unite Students Chief Financial Officer, commented: "The demand for high-quality, well-located student accommodation, together with rental growth, has resulted in an 8.5% and 12.5% like-for-like increase in the values of the USAF and LSAV property portfolios respectively during the first half of the year. The yield compression has been supported by a strong operational performance with reservations already at 86% for the forthcoming academic year." This should feed into share value right away. These are 'independent' valuations.
Buy Unite for student property returns: Investors can benefit from the growing demand for university accommodation through buying shares in Unite. The FTSE 250-listed company has managed to build up a dominant position in the U.K. student property market. Unite’s U.K. Student Accommodation Fund (U.S.AF), in which it holds a 22% stake, was valued at £1.98 billion at the end of the second quarter – a 4% rise on the same period last year. Property investing is ultimately a yield play. Borrowing cheaply and delivering stable rental income will generate profits and see the value of the property portfolio increase. The shares are backed by the underlying value in the two property portfolios. Analysts from JP Morgan Cazenove estimate the net asset value of Unite will be about 550p per share at the end of December. Unite’s dividends have more than doubled from 4.8p in 2013 to 11.2p last year, and are expected to increase by more than 15% each year for the next two years. The shares are up 66% since our “buy” recommendation on August 30, 2013. However, we still think there is more steady capital growth to come, so retain that advice. Unite at 595.5p+13p. Questor says “Buy.”
Mid June under RNS: http://www.lse.co.uk/share-regulatory-news.asp?shareprice=UTG&ArticleCode=a1vkqw0v&ArticleHeadline=Acquisition The managers at Unite Group do not sit on their hands.
Keep an eye on PAY, you might find it interesting in the next few days.
<b>UNITE Group plc’s “Add” Rating Reiterated at Numis Securities Ltd (UTG) May 21st, 2015 - 0 comments - Filed Under - by Thomas Dobrow</b> Numis Securities Ltd reissued their add rating on shares of UNITE Group plc (LON:UTG) in a research note released on Tuesday morning. They currently have a GBX 657 ($10.34) target price on the stock. UNITE Group plc (LON:UTG) opened at 620.00 on Tuesday. UNITE Group plc has a 1-year low of GBX 388.30 and a 1-year high of GBX 626.00. The stock’s 50-day moving average is GBX 594. and its 200-day moving average is GBX 519.. The company’s market cap is £1.25 billion. A number of other analysts have also recently weighed in on UTG. Analysts at Jefferies Group reiterated a buy rating and set a GBX 610 ($9.60) price target on shares of UNITE Group plc in a research note on Monday, April 27th. Analysts at JPMorgan Chase & Co. raised their price target on shares of UNITE Group plc from GBX 610 ($9.60) to GBX 700 ($11.01) and gave the company an overweight rating in a research note on Wednesday, April 22nd. Analysts at Stifel Nicolaus reiterated a buy rating and set a GBX 593 ($9.33) price target on shares of UNITE Group plc in a research note on Tuesday, March 24th. Finally, analysts at Oriel Securities Ltd reiterated an add rating on shares of UNITE Group plc in a research note on Wednesday, February 25th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of GBX 640 ($10.07). The Unite Group plc is a United Kingdom-based Company. The Company is engaged in the development and management of student residential accommodation in the United Kingdom. The Company acts as co-investing manager of four specialist student accommodation vehicles that the company has established, as outlined in the table overleaf.
As promised
UTG Unite Group Student Accomadation Lovely breakout on the chart. Buy Volume greater than sell volume. Decent broker backing. Forward P/E undemanding. Looks cheap. http://content.screencast.com/users/thomaser/folders/Default/media/31ea5448-b508-415b-a1af-dc2dfd14a56d/utg.jpg
A very upbeat report from the boss: http://www.unite-group.co.uk/#prettyPhoto/0/
Unite commisioned a survey showing 85% of students intend to vote. http://www.unite-group.co.uk/cs/Satellite?c=Article_C&name=Poll+says+85+per+cent+of+students+plan+to+vote&pagename=Corporate/Article_C/Corporate_Detail_Article&cid=1426983957594
Unite Group Plc (UTG.L) Announced that it has received planning approval by officers under a delegated decision for a 2.1 acre site in central Coventry. The new building will provide a 'Home for Success' for 286 students and completion is anticipated in time for the 2016/17 academic year and will have a total development cost of £17 million and is expected to deliver returns in line with the company’s targets for regional development.
I held Unite Group for years but had to sell them two years ago. Managed to buy in again in December. Since then they have gained over 20%. They are very much London centred so it is obviously still not too late to invest in London property. Another interesting development is a growingly mature dividend yield. Hopefully I will be able to hold these long term now.
P/B is low, growth high political support to support demand, opportunity to supply young professionals which is a large growth sector. Target 615p by 2016
The student accommodation developer Unite increased its revenues and profits during the full-year thanks to a high student intake for the academic year of 2014/15. Despite struggling with growing demand for new accommodation, Unite enjoyed a 3.3% rise in like-for-like rental growth. Revenue increased to £108.5m from £101.6m. Profits also rose to £104.8m from £77.1m the year before, driving earnings per share to improve from 46p to 53.1p. The group increased its dividend by 65% to 11.2p driven by improved profits and a "highly visible growth trajectory". Chief executive Mark Allan said the payout ratio should continue to growth "significantly" in the coming year. However, cash and equivalents decreased to £41.4m from £43.2m. Allan said: "Market conditions remain supportive. Student numbers continue to grow steadily, interest rates are still low, development costs remain attractive and the investment market continues to strengthen. "We are alert to the risks of rising interest rates, development cost inflation and the uncertainty of an impending General Election but are managing the business in a disciplined way and continue to look forward with confidence." Numis analysts said Unite is "in a sweet spot, with momentum in both the operational portfolio and developments". The broker gave a 'add' recommendation and revised its target price to 590p.
Recommended again by Midas share tips....previously recd at 438p.
Very clear exposition of UTG's market and plans. http://www.unite-group.co.uk/investors/CEO-video
A bit old but interesting... http://www.economist.com/news/britain/21601264-if-only-housing-market-general-worked-student-housing-up-and-up
Anybody know what caused the 2.15% jump today?
16 Sep 2014 Unite Group PLC UTG Liberum Capital Buy 0.00 433.00 516.00 523.00 Reiterates SP Target 516p
Friday tips round-up: Playtech, <b>Unite Group</b> Fri 29 August 2014 08:39 A A A Betting and gaming software provider Playtech's first half results showed the company is firing on almost all cylinders, but much is already baked into the share price, writes The Times's Tempus. Sales at its casino division rose by 29%, driven by multiple customer wins in various territories, accompanied by a 35% increase at its sports business. However, the expansion in the latter was flattered by the World Cup and is not a sustainable rate of growth. Bingo and poker on the other hand are facing stiff competition. The company nevertheless is left in the enviable position of having to decide how best to deploy its €366m cash pile. The board is hoping that the spread of regulation later in the year might present it with opportunities for investment. Even so, while the technology outfit is growing fast and regulatory changes offer enormous potential for gaming markets, on 19 times' earnings the stock is "not cheap, and probably only a hold," says Tempus. <b>Property investing is about yield, borrowing cheaply and obtaining a stable stream of income with those funds, and Unite Group is excelling at it. Over the first six months of the year the provider of student accommodation has managed to cut the average cost of its debt by 60 basis points to 4.7%. In parallel, the average maturity of that debt has been extended to over seven years and is almost all on fixed terms. Meanwhile, its portfolio of assets yields a steady 9% to 10%. Furthermore, the company is benefiting from the increased rates of growth in university attendance. Unite expects to add another 1,600 beds, mainly in London, to its portfolio over the coming two years. It should come as little surprise therefore that the company is set to hit its earnings target of 18p per share a year early. The shares only offer a 1.3% dividend yield but what you are paying for in this case is the expansion in the net asset value of the portfolio - which is reasonable. The stock still looks attractive, so 'buy' says The Daily Telegraph's Questor column.</b> Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
Buy Unite for property investment: Student accommodation provider Unite Group said that it has already let nearly all its rooms for the next academic year and at higher rents. The average cost of the debt has been reduced to 4.7%, down from 5.3% at the end of June last year and almost all the interest rates are fixed. The average debt maturity has also increased to more than seven years, from less than five at the end of June last year. The portfolio of student accommodation yields a steady 9% to 10%. Student numbers are also resilient. Mark Allan, Chief Executive, said that the latest figures from UCAS show university applications up 3.6% for this academic year. Occupancy levels for Unite’s accommodation in the current academic year are a record 92%, from 90% in the prior comparable period. This has all had a positive effect on the value of assets that support the share price. The net asset value of the property portfolio increased by £134 million to £816 million at the end of June. That equates to an increase in net asset value per share to 402p, up from 382p. Unite expects to add 1,600 beds in London in the next two years. The shares don’t offer much by way of income. The 5.6p prospective annual dividend, yields about 1.3%. However, Mr Allan expects to increase the payout and analysts forecast as much as 8.1p next year, or 45% increase. What you are paying for here is the growth in the net asset value of the property portfolio, and that doesn’t look unreasonable. The shares are up 23% on our original recommendation (357p, August 30) and still look attractive. Unite Group at 438p -2.2p Questor Says ‘Buy’.
UTG UNITE Group PLC Gone long on UTG just thinking of all those extra UNI Places this next year, they are going to need more accomadation. https://pbs.twimg.com/media/Bvi_xInIIAAJd6D.jpg
Strange. 2 RNS released ie Final Results and Firm Placing and Placing and Open Offer. Bit of a quiet board here so I think I am talking to myself- nothing new there.
As this is my first post on this board, I shall just say that I have begun looking at Unite as a potential investment and hold no position in the shares of the company. A question I have in regards to the Unite accounts are is it normal for such development companies to book increase in property value as income in addition to adding on that value to non current assets on the balance sheet. Taking away the increase in property value from the income statement I have them earning just above 30m a year. I may have completely missed something here and any guidance will be greatly appreciated.