F&c Commercial Property Share Discussion Threads

[washbrook] 16/7/2010 15:50

FACT SHEET:-

[tom.muir] 16/7/2010 15:06

FCPT pay the dividend monthly.

[nickcduk] 16/7/2010 14:46

Before you get too excited you need to factor in UKCM will got XD for 1.3p soon. FCPT have already paid out their dividend.

[enami] 15/7/2010 12:35

Any comments on the wind-up / UKCPT share issue?

The way I read it is we get 1.22 UKCM shares for every FCPT share.

UKCM currently 80.1p and FCPT 94p, seems advantageous to current shareholders, plus inceased dividend yield.

I make that 3.7p gain per new UKCM share, but I may have misunderstood the circular.

Example per 1000 UKPT share
.
1000 x 0.94 = £940

1220 x 0.801 = £977

From the circular

"Continuing Shareholders will benefit from an increased annual dividend, on the assumption that the Enlarged UKCPT maintains its current level of dividend, estimated to be an increase of 6.75 per cent."

[topvest] 11/4/2010 14:58

This is one of the better property income companies; we now have thre types of property company; plain property companies, REIT's and these offshore property income companies.

One question I have on all property income companies, that I have never seen explained, is why they all pay a dividend in excess of earnings. They seem to work on the basis of distrubuting a dividend at revenue less admin costs and ignore interest. Can anyone help me on what the strategy is on these, as they all seem to do it, and talk about dividend cover as if it dividends were covered. Somewhat misleading if they aren't!

Anyone else hold the view that these property income companies are a little vague about the fact that they are partly distributing capital?

[pip_uk] 11/12/2009 10:33

Surprised not to see more interest in this share.
Share price range has remained very tight over the past months plus they still maintain the monthly dividend.
From an income point of view it cant miss.
Anyway I have put my ISA allowance in this share.
They have money in the bank and their gearing is about 12%, which is reassuring.

[jgoold] 15/9/2009 09:32

Surely in these uncertain times capital preservation is more important than rolling the dice on highly geared trusts which if the market takes a further lurch down could actually go bust. Better to be in a company that can survive a further downturn and has the firepower to buy at or near the bottom when the market condistions become clear. In the meantime you can collect a good divi which is sustainable at least in the short term.

[pip_uk] 13/8/2009 14:43

Thanks for that Nick I did not realise that.
So maybe in the fullness of time my investment at 30p in IPI could come good with a rush.No point in selling at the present price.

[nickcduk] 13/8/2009 14:00

Dividend isn't covered and they are paying it using their cash balances. All good and well having cash and low gearing but in a recovering market that isn't what you need. Otherwise you fall behind when values start to rise and those with gearing report faster NAV growth.

[rrr] 13/8/2009 13:39

SP doing nicely still.

[pip_uk] 13/6/2009 13:35

Share price showing no setback at all.
It seems bullet proof from the general run of commercial property companies share prices, but is it justified. Being no expert in commercial property, but eyeing the dividend being paid, what have you more informed investors got to say on this company.
Regards.
Pip.

[aspex] 05/6/2009 00:00

... and the debt to equity is minimal!

[redsonning] 04/6/2009 18:25

On the contrary, these are by a long way the most solid of all the Property Trusts. Dividend near 8% and paid monthly with long-term prospect of capital appreciation starting from a low valuation base. Think it through carefully before taking action.

[skyship] 26/5/2009 16:46

If anyone still holds these, then SELL. NAV of 78.3p @ end Qtr1'09; yet the share price still holds @ 74.5p-75.0p. Perversely overvalued.

[redsonning] 22/4/2009 10:06

Regarding points made by ydderf:

FCPT cash position gives them an incredibly powerful position in times of very low property prices. Reducing their cash position (by paying down borrowings) would simply damage their ability to respond rapidly when they see an acquisition opportunity.

Your dividend figure is out of date...they are almost stable on a cash bisis. But even a slight deficit would be fundable for several years from such a hugely strong balance sheet position.

There is no great hurry to be fully invested. Take a look at those who are fully invested (e.g. TAP etc) and you will see the relative difficulties they are in. At present fully invested leaves you without flexibility to withstand further asset price declines.

[cerrito] 10/4/2009 09:35

I used to have holdings in this but it has been off my radar for the recent past;congratulations to those who bought in Jan/Feb. Having read the latest figures I am not inspired to buy at current prices. I did however wonder if there was a market in the debt.
I was reminded of FCPT when reading a synopsis of the above article as I remember about a year ago they were renting out offices to hedge funds.

[ydderf] 05/4/2009 08:01

How badly served are holders here:

1. £162m cash but £230m bonds on which they are paying 5.23%+ they are effectively paying interest to borrow their own money.

2. Dividends (£49m) seem unsustainable from net rents of £41m

3. The commercial property market has bottomed in the last quarter and yields are hardening - yet this company is not fully invested.

If the managers cant get the timing right, what are shareholders paying all these expeneses?

[pip_uk] 31/3/2009 14:24

All looking very positive at the moment, on the up after a relatively upbeat RNS.
Still digesting most of it.

[skyship] 18/3/2009 07:35

Friends Provident to sell F&C to its shareholders - can't see that it will have any effect on us, though potentially beneficial should someone arrive on the scene to take it out:

"Distribution of stake in F&C Asset Management

We are progressing toward distribution of our stake in F&C Asset Management to
our shareholders by way of a return of capital. In order to achieve the return
of capital, it is necessary to undertake a reorganisation that involves
establishing a new holding company on top of the Group to effect the demerger
and to create sufficient distributable reserves to enable future dividends to be paid by the Group.

The approval of shareholders and the court will be required for this reorganisation and it is expected that shareholders will receive relevant documentation at the end of April 2009. It is anticipated that completion will take place at the end of June 2009."

[not manu] 02/3/2009 19:08

> skyship
i've replied to your post #71 on the DJAN thread "Daejan - 3.5% yield and 50% property discount".

[skyship] 01/3/2009 13:45

ISA - Re that Continuation Vote

As you will see in the link below relating to the 2007 vote - Friends Provident are entitled to vote their 54% so sure, the vote will be passed. However, before or around the time of the vote, FCPT may well seek once again to reduce the NAV discount through share buybacks. Hence I believe that 60p may well hold.

[skyship] 01/3/2009 11:11

Not Manu - firstly, DJAN - this used to be an old favourite of mine back in 2001/2 when it was @ a 45% NAV discount. However I became progressively disenchanted with the frankly corrupt dividend policy. The controlling family (80%) pay themselves enormous salaries to in effect manage their own pension funds; but therefore have little need of high or even "fair" dividends - so minority shareholders lose out. Seems to me as though they lose out by c.4%pa - that's 17% after just 4yrs of holding DJAN. With so many PICs or REITS to choose from, why buy DJAN?

The key to the secure, lowly geared PICs (FCPT, IRP, UKCM) is the sustainability of the dividends as the investment case rests upon an assessment of both yield and asset values. The dividend payouts are effected by: Company policy, distributable reserves, fees & operating costs and banking covenant restrictions. Sure, in the cases above the revenues won't 100% cover the payouts, BUT, if the dividend level is the Company policy and there are cash balances to pay from revenues + reserves, then IMO the yield is a true figure - especially when reaffirmed. In the case of FCPT not only has it been reaffirmed, it has also been decided to pay the dividend monthly - a very handy benefit.

As to sustainability in the event of long-term depression and increasing voids, well, everyone has to make up their own minds on that score. Every investor should have an opinion; but recognise that no-one knows for sure!

[not manu] 28/2/2009 21:45

> skyship
Nice analysis on 65 of 69.
When writing about dividend yield, you need to remind everyone that these companies are paying slightly more in dividend than they get in!
Just a friendly reminder!!

I'm still monitoring UKCM, FCPT, MKLW and DJAN. I still think the main market will continue falling and it's quite likely these guys will be dragged down. Therefore, it's quite possible that we'll see discounts to NAV of 30-60% at the eventual ("despair" phase) bottom, or maybe not!

[isa23] 27/2/2009 16:34

I can even guarentee you the wording of the statement: 'a liquidation of ....in the current....will not be in the best interest of shareholders.....'

[isa23] 27/2/2009 16:31

Continuation vote is rubbish and just a formality 'cause of the terms they set out for themselves at launch. F&C itself holds about half the shares and no way is going to give up the nice management fees. I bet the house you won't see any liquidation. They had a similar vote I guess 2 yrs ago. Same result, NO Wind-up