Daejan Share Discussion Threads

[scburbs] 12/7/2012 08:21

Certainly a safe share for its low gearing and high NAV, but why do they produce such a poor income profit? I am pretty sure it isn't because of high PR/investor relations costs!

With £1.25bn of property and £0.86bn of net assets you would expect them to do rather better than a PBT before valuation movements and disposal gains of £16.8m (£21m last year). From this perspective the income return is very gilt like!

[dfohare] 11/7/2012 23:11

DJAN has a great l.term record
and it is also an easy business to understand

Profits (rental less costs less admin less interest) are c. 18m per yr
(say 14m post tax)
And if assets grow in line with GDP 2% a year that also adds c.24m per yr
So the business is growing at 38m post tax per yr
(the profits on valuation are taxed when sold)

So currently the business is being valued at post tax return of c. 8%
I think the business is a better bet than UK Gvt gilts at 2%
and so i think fair value would be on a 4% yield (£55 per share)

and in addition it provides a geared inflation protection
current yields on inflation linked gilts is zero
so investors are desparate for so secure inflation linked income
and i think DJAN fits the bill!


All IMHO, DYOR + BoL
DJAN is in my top10 holdings

[topvest] 11/7/2012 21:35

I disagree with you - they have rewarded shareholders over the long term with a fantastic record on net asset value and dividend growth. I'm happy to hold these pretty much "for ever" in the safe knowledge that the dividend and NAV will continue to rise! You can't say that about many stocks, and these are also on a 50% discount. They are not a trading share. Read the annual report when it arrives and it will tell you pretty much all you need to know until next year.

[dandanactionman] 11/7/2012 16:00

To scburbs

True however there will (probably) be more info on revaluations in the actual annual report.

[scburbs] 11/7/2012 13:31

It is difficult to find a property company with less interest in its minority shareholders (of which I am not currently one).

Final results and on £1.25bn of property the granularity of performance analysis is restricted to the fact that there was a valuation increase of £15.7m!

[dandanactionman] 11/7/2012 11:53

The following is all in my humble opinion. My first thoughts on the results are:-
• Operating expenses have risen faster than income, but there may be a Southern Cross part to this.
•
• Revaluation was better than I expected.
•
• Fair value losses on fixed rate loans were to be expected given continued low interest rates, and appears to have "improved" from half year figures.
•
• Nice to see a rise in dividend (even if a small one).
•
• Personally I like this company but I see some headwinds in 2012/13 year. My base scenario is no revaluation gains or losses in 2012/13 however I claim no insight on this.
•
• In the cashflow section there appears to be quite heavy repayments of loans.

[pimpi] 21/5/2012 16:04

whats going on with freahwater?

[qvg] 03/4/2012 20:29

it was grossly undervalued, starting the journey to fair value ...

[llwyd] 03/4/2012 19:50

What a beaut! Can't find any reason for surge, help anyone?

[damanko] 16/2/2012 13:10

About these understated Interim statements........: (16/02/2012)

Daejan Holdings PLC (the Company) presents its interim management statement for the period ending 31 December 2011 as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.



The Company published its Interim Report on 30 November 2011 for the half year to 30 September 2011. This interim management statement summarises any further relevant information for the quarter of the current financial year from 30 September to 31 December 2011.



There have been no material events or transactions to report for the period and performance has continued in line with expectations.



As previously reported an interim dividend for the year ending 31 March 2011 has been proposed for payment on 2 March 2012. To qualify for the dividend shareholders must be on the register on 3 February 2012.



Other than the matters described above, the Board is not aware of any material events during the period from 30 September to the date of this statement which would have a material impact on the financial position of the Company.

[topvest] 05/12/2011 21:46

Yes, missed them - solid as ever! The care homes issue is nasty, but not particularly material and looks like they have absorbed the impact already with NAV about the same.

[dandanactionman] 05/12/2011 19:49

All the following is IMHO

What did people make of the results?

The care homes issue was poor but we knew this was coming.
The rest of the results seem ok.

Yield is a little low for my liking
Discount to nav seems very high

[grahamburn] 05/12/2011 19:30

Brief positive mention in this article on commercial property shares:

[tamilyrn] 17/10/2011 12:10

The thing is, DJAN seems so ridiculously low on fundamentals that trading in the noise of £24-27 ought to make little difference to eventual return. The gain here is long term on a (fairly inevitable IMHO) re-rating ; meanwhile it's about a safe as a stock can get.

My personal view is that family owned firms are ideal for longer term investment - prudence at the expense of maximum divi is a compromise I'm happy with.

[grahamburn] 10/10/2011 16:44

If you had that thought yourself, then buying this morning on the dip would have made it a brilliant thought! You'd have caught the dip, secured the dividend (50p), made £1 (in round figures after expenses), and still been in profit once it goes ex-dividend on Wednesday. However, hindsight is a wonderful thing. Plus, of course, if you had studied this share for more than a day or two, you'd have spotted that it bounces around quite a lot without much trading, so it's a difficult share to time your purchases (or sales).

[retsius] 10/10/2011 15:56

topvest
many thanks.Thinking of buying before div. Any thoughts?

[topvest] 10/10/2011 14:23

or increase...always very volatile within a +/-5-10% range. Not much trading, that's why!

[retsius] 10/10/2011 09:14

Anyone know why share price dropped today? xd on Wed. I think?

[topvest] 02/10/2011 19:07

This is not a share that can be ramped. It's a steady as she goes stock. People that are interested in making a fast buck should go elesewhere. If you want to make a reasonable return over the medium to long term, then this is a pretty good home for your money imo.

[pip_uk] 02/10/2011 09:22

Very well ramped as well, great family company with a great discount to the NAV.
Watch it tick up tomorrow.

[mctmct] 01/10/2011 15:04

Ramped by John Lee in the FT today.

He did the same in September 2009, I recall.

[tamilyrn] 16/8/2011 10:43

The upside of the recent market carnage was an opportunity to top up here. Given the current climate in Europe I like this as a safe haven.

Caution required though - my order went negotiated trade and seems to have been split into chunks and passed through at varying prices. Looking at advfn I'm seeing a fair bit of it still pending so not entirely sure what my buy in price will end up being. Downside to illiquid stocks I guess.

[aishah] 09/8/2011 11:36

London riots causing a sell off here??