|Pactolus Hungarian Property
||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Pactolus Hungarian Property News
|metaphysicalman: The share price has been pushed too low here. Trades over the past couple of months suggest some institutional selling. This appears to have slowed over the past couple of weeks. Looking at the positives:
- Great news about the loan facility - removes a lot of uncertainty.
- The Euro:Forint exchange rate has only deteriorated by 3% since 30 June, so shouldn't make too much of a dent on NAV
- Shares purchased recently by the Asset Manager - equivalent to Director buying
- Significant discount to NAV - possibly up to 50%.
- Rental yield announced in recent RNS consistent with previously announced average yields. Good news on uplifted rents (albeit flagged that future uplifts may not be so significant)
- Hungarian economy had tough time in 2007, but forecasters are predicting better for 2008.
|stucom: POL....IC...THIS WEEK.....negotiating a short/med term finance facility to be used to increase number of apartments owned in budapest (54 @ end june,now 65,expected to hit 95 by march '08)apartments are old commie members turn of the century 2 bed gaffs.once refurbed,they be rented out to overseas 'blue chip'companies on 2-3 year leases,yielding 8% goes on about recent problems,but is 'fast becoming a centre for accounting and payroll outsourcing which should boost rental demand'...all apartments are in dist 5&6 (close to parliament building)they cover an area equivalent to the City of Westminster plus Kensington and Chelsea.
positives are PHU are cash +tive on a monthy basis,with current rent (i'd rather they got paid in euros!)climbing to almost 950k euros.2 villas purchased,which are to be split into 9 flats....
share news equates to...............
'like other property companies,concerns over inflated values has pushed PHU's share price down fron June high.in buda,prices have only rise modestly over last 12 months,but may change as more foreignservice centres are set up there.the Hungarian minister of Economy& Transport predicts the number will double to 80 over the next 3 years......
all down to belief i suppose.will the 'blue chips' come,will their economy remain stable,and can they push their growth targets..3 years to double.not sure how that will inpact on sp,timescale,as i've only come across this company,via looking at euro comps as a whole.......good luck,will watch.....stu|
|slapdash: found it... looks like a load of rubbish... as has increased share price very modestly over last 5 years... compared to All share and property sector
ISA23 - it isn't the discount to NAV that determines value it (i.e. relative Price)... it is the quality and momentum of the business....
The two you mentioned.. Invista and Uk Balanced property... have really not performed well .... have underperformed property sector and market as a whole... so they deserve a large discount for low quality...
This on the other hand has a large discount to NAV but has quality and momentum.... i.e. its NAV should increase faster than peer group...
So if you just look at price it may not appear to be so cheap... but on quality and momentum it beats the two you mentioned hands down and thus is very cheap in my view...
I.e. growing NAV through apartment refurbishment and being in a Capital city that looks set to become the economic hub of central Europe.... and managers have done very well to date in operating portfolio and increasing NAV...
|slapdash: invistia??? Never heard of it ... where is it listed and what's the ticker..
UK balanced property.. looks to of been a dire performer.. from £1 to only about £1.40 over 4 years in the middle of a commercial property boom..
bargain or not for PHU?? depends on what you think they can do with the NAV...
I think their uplift to date is very impressive nad highlights the excellent low risk strategy of upgrading old flats in Budapest... they have a compound rate of return since floatation that is almost the same as UK balanced property over 4 years.... that momentum should continue...
now we are in the middle of the year the NAV is probably just under 75p.... so discount even higher... and yield will become higher and higher which will support the share price...
|slapdash: this is at a 16.2% discounts to valuation as of End last year... i.e over four months ago... (asset value 71p versus share price 59.5p)
it pays a yield of over 3.5% which will climb over time...
and has the momentum behind it... in terms of rising asset prices etc...
seems like a bargain to me... no doubt the IC will write about it on Friday
Pactolus Hungarian Property share price data is direct from the London Stock Exchange