|Today it`s good news. New fund management mandate.|
|Crikey, what happened today?|
|Nice update on aum , growing fast and the fund mgmt business is basically valued at zero at some point there will be a realization of what a great business this is !|
|We have been shortlisted for the Property Fund Manager of the year, in the Pension Age Awards - result to be announced on the 23rd Feb 17.
Hopefully greater recognition, might bring further FUM mandates.|
|FPO tip update by Simon Thompson on Investors Chronicle website today. Reiterates BUY.
HTTP://www.investorschronicle.co.uk/2016/11/28/comment/simon-thompson/currency-winners-qbFROOzZ0hPa5K2YonNR7H/article.html [subscription required]|
|Simonsaid1, I agree - totally bizarre. Broker (Arden Ptrs) yesterday, 23.11.16, upgraded forecasts PBT: £9.2m(+30.6% on previous forecast); EPS 5.6p (+32.1% on previous forecast). And there's a dividend yield of 3.3%.
Fx benefit, with contributions from new investments last year, and reduction in funding costs on European debt; NAV up 6.6% (to 45.48p) due to fx.
I guess it appears profits are flat at 4.47m, but last year there was a one off item of £1.58m, this year only £290k one off - so the real picture is pretty impressive; and more sustainable in future years. Equally, the EPS was down 17%, but this is due to a complex deferred tax due to fx, but only applies to H1 (this allows for H2).
So increase Group Properties profits (+3%)come from lower interest rates, and lower avg debt, but a wapping 16% £7m adddition from fx.
Property fund management profits fell dramatically £1.19m to £0.77m, mainly due to non repeat of performance fees of £0.86m from the PDR fund last year. However 3rd party funds under management grew 20% £196.2 to £234.5m.
Well worth taking a look at the broker note, which can be found on the paid for subscription service, Research Tree. (Well worth the subscription).|
|Utterly bizarre that this continues to trade so close to NAV. Do investors really think this has no growth potential at all? It's so well positioned. Don't get it. Must be the general PI reluctance to touch property right now.|
|PBT upgrades of 28% this year and 30% next year. Hard to find that elsewhere in this market. Goes to £9.2m and £9.4m. And that is without further investment, fund gains or exchange upgrades (another £300k if you market to current spot rate).
Given we are trading at asset value, this is offering no credit for any future value generation.|
|Ben Habib - talking to Proactive.
Apparently we are about to purchase a property in Krakow
Ben Habib talking to share radio & audio results are now available from the media centre of the companies web site.|
|the market latching onto those 20% upgrades.|
|Presentation is up on the website , all looks like plain sailing|
|No longer down a little, almost 5% down today. Have we missed something..??|
|Yeah, decent results. Surprised its down a little. same old adage, patience will be rewarded|
I'm not sure that all the profits are recurring as you suggest above. There is a list of 4 non recurring things in the report including this:
Foreign exchange gains – the Euro was on average some 12% stronger versus Sterling
during the period at €1.217 (2015: €1.386). This resulted in Group profit before tax
being £620,000 higher than if on a constant currency basis;
Nice to see so many positive non-recurring items though. Most of the companies I follow seem to have to report the opposite. I agree these are very decent results and the share price continues to struggle to keep up with the ever increasing underlying value.|
|So, forecasts for the year are £7.2m, they just reported £4.5m of PBT in H1, which is all recurring bar about £0.3m. So given the rising FUM H2 must > H1. Even if it is only equal, we get PBT of £8.7m, so a 21% upgrade. And that is before the further £0.5m currency upgrade you get given if you market the average currency to the year end. I wouldn't worry about the small sell off, trading at NAV and generating swathes of cash each year. this should be on a material premium.|
|Decent results , I dont see why the shares are weaker today, the results are now all recurring profits rather than one offs and by the end of the financial year aum in the asset mgmt side of the business will be close to 500m and growing very fast, also the fact that a reit market is slated to be created could give a very profitable exit from the polish assets at some point with a fat fee annuity... All looks pretty decent, maybe things will perk up after this presentation and if simon thompson writes up later in the week|
|Interims on Wednesday, could be a run up the next couple of days, the falling pound will have helped Euro earnings - maybe news of new investment.
Something of an under the radar share on AIM, but nevertheless a progressive profile.
|it is definitely a tip, 16 trades since midday, no trade today over £7k in value. the upside comes from having a wider following when good news is released, further pension fund wins, currency upgrades for e.g.|
|Almost 6% up today, at one point hit 52p, but I can't find any news to explain it. Not a fresh Simon Thompson tip, no RNS... weird. Anybody got a clue?|
|However I am also mindful that we don't blind one another in this thread - we also need to think of the drawbacks so an opposing view would be very welcomed.|
|Feel like FPO is in a sweet spot at the moment & markets are finally waking up to this.
86% of profits is from assets they own, I believe all are in Poland or Romania? SO the price of these assets & profits are going up due to the exchange rates. Pension funds seeing property as a good way to increase their yields and FPO having a successful history in managing these investments.
Ben seeing assets in the UK as a good buy after Brexit.
Lots of different parts of the business but feel they are all in a good market at the moment.
I had a target of circa 55p but might need to up my target!|
|Lots of small trades going through. Feels like another Monday morning tip. rare to see a half penny spread in FPO.|
|interesting win - no mention of this at the AGM, it must have developed since. So it is in addition to the other new mandate of £70m they expect to win from a new name. More good news pending by the sound of things.|
|Nice increase to the shipbuilding fund, Since the march yearend they have increased this fund by 50m gbp and now have headroom for another 50m so 100m increase in aum from just this customer, they should be close to 500m aum by yearend and this asset management business is priced by the market at zero , should be worth at least 10p per share or more if aum keeps growing like this ....|
|Here is the small I.C exert taken from the FPO website.
Investors Chronicle - Anomalously priced fund managers
Simon Thompson summarises: ‘Rated on a discount to spot net asset value, trading on just 8 times forward earnings…, and with significant upgrades highly likely in eight weeks’ time, the investment case is very solid. In the circumstances, I rate First Property’s shares a strong buy…ahead of November’s interim results and my initial target price is 56p, coinciding with the all-time high dating back to the end of last year. Buy.’|