St.modwen Properties Share Discussion Threads

[jeffian] 23/9/2016 09:53

Bit Thick, what you may have missed is that there was quite a lot of press speculation about overdevelopment and falling demand at one of their largest regeneration schemes at New Covent Garden Market and a write-down of values at the half-year statement in July -

"These results absorb two negative factors:

- NCGM revaluation - during the period and based on recent transactional evidence, NCGM was revalued principally on the basis of a residential sales price reduction of 3.75%. This resulted in a £21m reduction of the valuation of our share of this asset. The NCGM valuation is consistent with our expectations and demonstrates that market evidence does not support the level of negative sentiment expressed during the first half of the year towards Central London Zone 1 residential prices and Nine Elms in particular.

- Stamp Duty Land Tax (SDLT) - a one-off £13m impact from the increase in SDLT announced in the recent Budget."

I'm sure over the long term this well-run company will continue to do excellently but at the time, that spooked the market and it took another hit - with all other property co/builders - on Brexit.

[boonkoh] 23/9/2016 09:22

Bit Thick:cuts not following Current property values but expected Future property values since it will take years o convert its land bank to saleable properties.

[bit thick] 23/9/2016 09:09

Not sure this share follows property prices. In August 2015 it was nudging £5, in June 2016 it was less than half that. Did I miss the halving in property values? This is oversold and represents good long term value at these levels.

[solomon] 01/9/2016 10:00

Property prices have been reported to have levelled off in the last few months. It had been predicted that the rises would end at some point. Perhaps it's a case of sell the rumour buy the news.

[bluerunner] 31/8/2016 20:48

Best day for some considerable time for SMP. Any clues as to why? It would be nice to break and stay above the £3 barrier.

[bit thick] 08/7/2016 10:33

The world is getting smaller and outside of the EU we can trade with, and have investment from so many other countries. Yes, the transition may be volatile, but the risks from the Eurozone are ever present and Italian banks are likely to need a bail out. Then people will rush towards good, solid investments.

We may not have reached the bottom here but the descent is slowing. this is a good long term investment.

[dlku] 08/7/2016 06:46

Global sovereign wealth funds are waiting to pounce on bargains instead of paring stakes in the U.K. following the Brexit vote, a senior industry expert said Friday.

"Sovereign wealth funds are patient capital. They have a long term investment horizon," Michael Maduell, president of the Sovereign Wealth Fund Institute, told CNBC's "Squawk Box" on Friday.

"When everyone is freaking out about the pound sterling going to a 31-year low, wealth funds can come in and tactically purchase assets and tactically place bids on companies."

In the wake of the U.K.'s referendum vote to exit the European Union (EU), the pound has plunged to its lowest levels since 1985 and a leadership vacuum has emerged in the wake of the resignation of Prime Minister David Cameron.

A rush of fund outflows from the U.K. has spurred several property funds -- including those run by Standard Life, Aviva, M&G, Columbia Threadneedle and Henderson -- to suspend redemptions as investors clamored to yank their money.

In addition to short-term market gyrations, a possible exit from the EU will also have long-term consequences.

Brexit may have put London's status as a major financial center at risk as an exit from the EU would likely cost it its ability to trade freely with the continent.

"These are the opportunities that cash rich wealth funds can take advantage of," Maduell said. "They can jump on real estate when it goes too far down."

Maduell noted that a number of sovereign wealth funds, including Singapore's Temasek, Malaysia's Khazanah and the Kuwait investment office, already had offices in London.

Brexit may also be a factor in a slowdown in deals by sovereign wealth funds, Maduell said.

[spacecake] 06/7/2016 21:55

The fund suspensions should help in the short term, but this panic has a few weeks in it yet. I've got my vomit bag ready.

[portora] 06/7/2016 13:14

I'm not sure we'v reached the bottom yet but i've got my fishing rod out just in case.
Seeing a couple of Director buys is always encouraging.

[bit thick] 06/7/2016 08:47

Don't think Carney is helping. There cannot have been reliable statistics, post Brexit vote, so I can't see the justification for all this doom and gloom

[bluerunner] 05/7/2016 18:17

Yes - the sector is getting battered.Investors also further spooked by those property fund suspensions no doubt.Jonas Crosland in the IC has reiterated his buy stance this evening.'Analysts at Peel Hunt expect to downgrade full year end NAV from 477 to 460.''Given rental income is growing well, the discount is hard to justify. We're still buyers.'Balls of steel and all that but, taking a longer term perspective, could this now be a good buying opportunity?

[spacecake] 05/7/2016 11:12

Not the greatest update today but some positive stuff in there. It would seem the market has took the view that property prices have topped out and it's all doom and gloom going forward. Everything remotely connected to property being marked down.

[its the oxman] 25/6/2016 09:43

Given positive trading comments re improved nav at half year and year end these look oversold - like many other stocks on the Brexit news. Trading could of course worsen but I doubt it will fall of a cliff so looks way overdone to me - the world is not going to end and with a growing population, people will always need homes. Bought a few 272p. Will have to revisit in a few weeks and see if they are cheaper still, or not.

[solomon] 24/6/2016 22:33

Real Estate Investment Trusts, Builders all down today but SMP seems particularly hit.
DOW down 3.4%. I bet the Yanks are lovin' us.

[spacecake] 24/6/2016 20:30

down 19% today..

[broadwood] 31/5/2016 08:15

Difficult to understand why the price came back so much - although the London worry effect may have been a contributory factor.

Will stay with this one as it hopefully re-rates.

Property company St Modwen said the trading for the year had started well as it continued to extract both short and long-term value-generating opportunities from its land bank through asset management activities, remediation, and success in planning and development.
In a pre-close statement for the period 1 December 2015 to 31 May 2016, St Modwen said it continued to add new opportunities to its commercial development pipeline, which stood at 1.7m sq ft and comprised a variety of uses in those regions where there was good evidence of occupier take up.

Chief executive Bill Oliver said: "We have experienced a good start to the year as our extensive regional portfolio, commercial development pipeline and housebuilding activities continue to produce real opportunities for growth in terms of group net asset value which we expect to demonstrate at both the half year and the full year 2016, leading to long-term value creation for our shareholders."

"Our housebuilding activities through St. Modwen Homes have stepped up a gear and have overtaken the Persimmon Joint Venture with 14 sites under development and another four expected to start on site during the second half of the year."

"Overall the housebuilding area of the business remains very profitable, reflecting the strong consumer appetite for housing across the UK, with reservation rates and sales prices currently ahead of targets."

"Demand for residential land from third party housebuilders is good and we have agreed or completed site sales in the period for prices at or above book value."

The procurement of the market at New Covent Garden Market was now underway, St Modwen said, with vacant possession of the 10 acre Nine Elms Square site anticipated for spring 2017.

The company reaffirmed that it intended to either sell, joint venture or develop the site during 2016.

During the period the majority of St Modwen's acquisitions activity was focused around the North West region where it invested in a number of retail and industrial-led opportunities including Crosby Town Centre, Liverpool and Warth Industrial Estate in Bury.

"We have also signed a number of Development Agreements across the UK, the most recent being to develop 1m sq ft of industrial space at Chippenham, Wiltshire and also with the London Borough of Greenwich for the £200m development of the new Spray Street Quarter in Woolwich and in joint venture with Notting Hill Housing," the company said.

"At the same time, we have disposed of those assets to which we can no longer add material value, all above book value and including Queensmead Shopping Centre, Farnborough for £16.

[redartbmud] 31/5/2016 07:58

Yes, a lot to like, particularly the following:

Following strong investment activity at the end of 2015, annualised rent roll has grown to £60m and now covers the operating costs of the business which further underlines our strong financial base.

[bluerunner] 31/5/2016 07:47

Extremely positive pre-close statement.

[its the oxman] 20/4/2016 09:37

Tempted to buy but like everything property related, concerns over run up to Brexit vote may provide even better opportunities so no rush perhaps.

[redartbmud] 08/4/2016 21:23

Linhur

My sentiments entirely.

red

[linhur] 08/4/2016 12:24

Mr Allan seems to be good at building sparkly new accommodation for modern students rather than regenerating tired old steel plants. Perhaps they will move to a new strategy. Pity as there may not be the opportunity to expand Swansea University in 10 years time after reclamation and remediation of the Port Talbot site.

Jury is out on Mr A. until I see his new plan.

Linhur

[redartbmud] 07/4/2016 07:52

St. Modwen Properties PLC (LSE: SMP), the UK's leading regeneration specialist, announces the appointment of Mark Allan as Chief Executive with effect from 1st December 2016. Mark will join the Company on 1st November 2016 as Chief Executive Designate, ensuring time for a handover of responsibilities.

The appointment concludes a detailed search process following the announcement made on 2nd February 2016 that Bill Oliver, St. Modwen's current Chief Executive, will retire on 30th November 2016.

Mark (43) joins St. Modwen from The Unite Group PLC, the UK's leading operator of purpose built student accommodation, where he has been Chief Executive since September 2006. He joined Unite in 1999 from KPMG LLP and has held a number of finance and commercial roles in the business, including Chief Financial Officer from 2003 to 2006. Mark is a qualified Chartered Accountant and a member of the Royal Institution of Chartered Surveyors. He also serves as a Trustee Director on the non-executive board of Anchor Trust.

Commenting on the appointment, Bill Shannon, Chairman of St. Modwen, said: "Mark has an impressive track record and is highly regarded in the listed property sector. I am certain that under his leadership the Company will continue to build on its unrivalled regeneration expertise and proven ability to realise value from its extensive land bank. The timing of this appointment allows for a smooth handover process and we look forward to welcoming Mark to the Board."

Mark Allan said: "St. Modwen has a well-earned reputation as the UK's leading regeneration specialist and I am excited by the prospect of working with the Board, senior management team and staff to build on the Company's strong foundations and to lead the business in the continued execution of its strategy."

[peaeff] 23/3/2016 08:20

Another positive statement from the BOD and a rebuff of the Nine Elms issue which has purportedly had so much effect on the share price Hopefully a steady rise from here.

regards

[broadwood] 23/3/2016 07:13

St Modwen Properties said its business continues to perform well, supported by its extensive regional development portfolio and income producing assets. Real value continues to be added across our UK-wide portfolio through land renewal, planning gains and asset management, the company said in a trading update. "In the period, we have already completed a number of key retail and industrial acquisitions and the portfolio has also benefitted from new opportunities secured through Development Agreements. "Over the course of 2016, we will continue to seek to acquire new opportunities in this way, with good development potential in the long-term and further enhancing net rental income in the shorter-term. In doing so, we continue to build on our strong regional presence. "As we look to bolster the portfolio through the identification of attractive new investment opportunities, we are simultaneously seeking to dispose of certain assets to which we can no longer add material value. During the period we have already sold or agreed for sale £39m of mature assets at or above book value. "Demand for residential land from third party housebuilders is steady and we have agreed or completed £41m in site sales in the period, with prices at or above book value. "We continue to extract maximum value from our income producing portfolio and we are experiencing good occupier demand across the UK. Our actions taken since November 2014 have grown annualised current gross rent roll from £45m to £60m. "In addition, we have already identified further sites from our existing portfolio for Private Rented Sector (PRS) development which we will progress through the planning process this year. Construction works are expected to start shortly for the development of 201 PRS apartments on our 110 acre site at St. Andrew's Park, Uxbridge for delivery in 2017/18. "Activity across our commercial development portfolio remains strong and we continue to recycle developments that were commenced speculatively. "Our housebuilding activities through St. Modwen Homes have stepped up a gear and overall the housebuilding area of the business remains very profitable, reflecting the strong consumer appetite for housing across the UK, with reservation rates and sales prices currently ahead of targets. "The procurement of the market at New Covent Garden Market (NCGM) is now underway, with vacant possession of the 10 acre Nine Elms Square site remaining on track for Spring 2017. As outlined in our 2015 full year results, we intend to explore our options to either sell, joint venture or develop this site during 2016. "We are aware of the negative sentiment expressed towards Central London, Zone 1 residential prices and Nine Elms in particular. Our share of NCGM, held in a 50% joint venture with VINCI Investments Ltd, accounts for 13% of our UK-wide portfolio. Having reviewed sales activity in the area it is clear that current market evidence does not support this level of negativity -

[brain smiley] 14/3/2016 15:29

You on Mars?