Mckay Securities Share Discussion Threads

[coolen] 20/2/2013 20:58

Perloff (and I fully agree he is a shrewd investor) also holds a slug of department store Beale (BAE)which he effectively bid for at 36p. Price now 18p:



The question for Perloff fans is which of the two targets you go for: Mackay at the 140p level at which he is presently buying, or Beale at 18p, some 50% below his purchase price ?

[janeann] 19/2/2013 08:28

Many thanks......

and i see some more lsrge trades going through this am. Onwards and upwards perhaps.

[jonwig] 19/2/2013 07:09

And a very shrewd investor! (Hope he isn't losing his touch.)

[topvest] 18/2/2013 21:01

It is for Perloff - he's a legend!

[janeann] 18/2/2013 20:32

OT but Ive just read the last TS from Panther Secuities.(of 3/12/12) out of curiosity; quite a surprise to find it contains the personal ramblings of the chairman. Never thought a TS was the place for this type of thing.

[skyship] 18/2/2013 16:17

RNS - Holding statement - Andrew Perloff (Panther) has added another 135k
& has gone through the 5% level:

2,295,000 shares being 5.002%

[alter ego] 15/2/2013 15:31

agree, not extinct, thankfully - very positive IMS is helpful

[janeann] 15/2/2013 12:39

definitely life still here........

[alanji] 15/2/2013 07:56

Good IMS today

Highlights:

The most significant event for the Group over the period was the freehold disposal of 100 Bothwell Street, Glasgow (100,270 sq ft) for GBP16.79 million. The sale price represented an 8% surplus over book value (30(th) September 2012) for the property, which was developed by the Group in 1988. The disposal on 4th January 2013 followed the uplift in value secured in May 2012 when a lease extension was agreed with the Student Loans Company. The proceeds will be recycled into commercial property within the Group's core London and South East markets that replace income with the potential to add value through development, refurbishment or active management. The disposal leaves the Group's portfolio located entirely within these markets, split into three main sectors: South East offices 43%, London offices 34%, South East industrial 21% and residential/retail 2% (by value as at 30th September 2012 valuation).

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The Group acquired 66 Wilson Street, London, EC2 in December 2012 for GBP3.6 million at an initial yield of 9.9%. The office building, which totals 12,345 sq ft, was built in 1988 and occupies a prominent corner location just to the north of Broadgate and Finsbury Square. This location is benefiting from increasing TMT occupier demand and the anticipated impact of Crossrail. The building is let until June 2013, at which time either the tenant may choose to extend its occupation or the Group will implement a comprehensive refurbishment.

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At Pinehurst Park, Farnborough (acquired in June 2012) planning consent permitting conversion from office to residential use has been achieved for the former Convent (13,400 sq ft), which is being marketed freehold at a price of GBP900,000. Disposal of the Convent was the planned first phase for this asset, leaving the balance of the site (2 acres approx) with a secure running yield (on cost, less estimated net disposal proceeds from the Convent) from the retained office element of 17% until February 2018, during which time the potential for an uplift in value from residential consent will be explored.

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Portfolio occupancy (by rental value) increased to 93% from 91% (30th September 2012). The five largest void buildings, totalling 76,000 sq ft, account for 73% of this void (by rental value). These are all located in established centres and are being marketed in good condition to enhance letting prospects.

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Rents received within seven working days of the December 2012 quarter day continued to exceed the Group's target of 90%. Tenants paying rents on a monthly basis remain low and well below 5% of rents demanded. There were no tenant insolvencies over the period.

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None of this is new news but presented in one release it looks quite impressive and illustrates managements new attitude.

[janeann] 14/2/2013 16:05

well its got to 140 on the bid where it hasnt been for a while. odd set of trade data too..... almost completely alternating buy and sells.

[alter ego] 14/2/2013 15:25

movement? Looks about as lively as a dodo to me.

[janeann] 14/2/2013 14:48

well starting to show some movement today; about time given the discount to NAV

[alanji] 28/1/2013 17:10

At 47% LTV is reasonable and similar to peers.
Swaps are now aligned with loans. Rates not bad - £75k from 4.8% to 5.17% in March 2014
£25k from 3% to 4.32% in April this year.

[skyship] 28/1/2013 13:36

MCKS has been trading within the very narrow band of 130p/140p for the past 9months.

The problem keeping the lid on the share price may be the relatively high LTV and the continuing trap of their swaps which prevents them going for an early refinancing to lock in the historically low interest rates. I'm sure they would love to "Do a Picton", but it doesn't look as though they will do so...

[skyship] 07/12/2012 14:55

Agreed, the stats of a 6.3% yield and a 43% NAV discount suggest 132p is an attractive buying level. However, with sentiment still against the sector and the indicators in downtrends, I'll wait and watch for the moment. These can move 5%+ in the blink of an eyes, so will set a 125p buy limit just in case...

[patviera] 29/11/2012 15:54

This imho is the cheapest propert company around..a safe 6.5pct yield a high nav of 230p and good tenants....I have a 2qd price target in 2 years time.

[jonwig] 21/11/2012 14:42

Lord G, etc. ...

I missed the MCKS results because I was checking stuff ahead of going to yesterday's AGM of Town Centre Securities [TCSC] in Leeds.
It's similar in that it has regional expertise, though more retail-focussed.

For anyone interested in propcos, it seems that the larger [FTSE100] are fully-valued, and the rest won't get much capital growth until markets recover outside the hot areas of central London.

MCKS and TCSC have different skills and areas, but each one appears to be good at what it does. Neither is over-leveraged unless there's a repeat of 2007-09.

So no wizardry for a while, but yields of ~6% are attractive.

[lord gnome] 21/11/2012 14:32

Can't argue with that assessment. Thanks for that jonwig.

[jonwig] 21/11/2012 14:30

alter ego - thanks, I tend to look at IC a couple of times a day.
Anyway, here is their wisdom:

RESULTS: The regional office market is stagnant, but McKay has had a strong half and its shares look cheap

Real-estate investment trust McKay Securities (MCKS) signed two big deals during the six months to the end of September. The first was a 12-year lease to the Overseas Development Institute for its newly furbished office block on Blackfriars Road in Southwark, at a rent of £800,000 a year. Partly because this was 9 per cent above surveyors' March estimates of rental value, the building was marked up in value by a full 48.1 per cent. That was the primary driver behind the 1 per cent growth in the value of the total portfolio.

The other deal was a potentially profitable acquisition in Farnborough. McKay bought Pinehurst Park, which consists of two office buildings let to IBM, for under three times the rental income of £1.29m. The income will fall to £500,000 when IBM vacates one of the buildings next year, but McKay then hopes to get planning permission to convert the site, which used to be a convent, into housing and sell it to a specialist developer. When IBM leaves the remaining 1980s office block in 2018, it will then sell on the rest of the plot for housing.

These two deals helped boost rental income by 5.2 per cent to £7.23m. After flat administration costs and slightly lower interest payments, adjusted profit was £2.94m - 17.6 per cent higher than last year.

House broker Oriel Securities expects adjusted full-year net asset value to increase to 233p a share (229p in 2012).

IC VIEW

It has been an encouraging year for McKay, even in a stagnant market. Trading on a 41 per cent discount to adjusted NAV of 231p and yielding over 6 per cent, the shares look cheap on a long-term view. Buy.

[alter ego] 21/11/2012 13:57

tipped as a buy in the IC today

[jonwig] 21/11/2012 11:30

I've only just caught up with the H1 results from yesterday.

They appear to be managing their estate well, including the recent acquisitions. Voids are down a lot (though this might be a blip), and lease length up.

Considering the market outside prime London is flat, MCKS seems a sound hold.

[skyship] 27/9/2012 10:21

SteMiS - well done you. You timed your play well. Got my timing all wrong in MCKS and now hold only APT, DSC & TEIF in the property space - APT a recent buy which @ a 52% NAV discount is surely over-discounting the worst.

[alanji] 13/9/2012 11:31

Thank you to anyone who generously donated to Marie Curie - details in my original post (link below). The total to date is over £1200 and I know a few more cheques are in the post. This compares with the average of £2-300 so, a fitting tribute. Donations are still being accepted should anyone still like to contribute (details in original post). All contributions will be used to fund the provision of end of life nursing care for patients in their own homes. When arrangements were being made to get Lisa home there was only one nurse available. Two are required and had I not agreed to act as the second 'nurse' she would have died in hospital, so it is certain that any funds raised will help someone else fullfill their wish of being in familiar surroundings with people they love, in their last hours, days or weeks.

Thank you also for the kind messages, both publicly and privately.

[jonwig] 04/9/2012 08:36

I was thinking of switching to another prop-co.
But it's worth noting that they were able to pay 14.2p in 2009 (doubtless from a different asset mix) and recent acquisitions should be dividend-enhancing in due course.
How likely is a bid?
Panther have a stake which may be strategic, or maybe opportunistic.

[stemis] 04/9/2012 08:28

That's me out. 27% in 16 months (inc dividends) has been a decent return but the yield is now only 6% and I've decided to up the proportion of cash in my non SIPP holdings.