|Terrace Hill Group
||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Terrace Hill (London Stock Exchange): 0 recent articles
|el1te: Good share price progress as the company moves closer to the U&C reverse takeover completion.
I can only see further buying once the takeover completes, given that many institutions and funds will no doubt be locked out at the current point in time, as they have a mandate that doesn't allow them to buy companies under a market cap of £xm|
|1nf3rn0: Only just had chance to view the results as I've been too busy today. Decent results in the context of the last 5 years, and we'd have taken that at the start of the year. Clearly the share price had got ahead of itself so far north of 30p, but there are still some sizeable food store, student accommodation and leisure projects in the pipeline - all of which seem sensible investments if we are to have the expected population boom.|
|d40eq6: Solid results. Like the debt reduction. I do work for private developers in this sector and the debt (whilst necessary for gearing) can be a millstone. Given the drop in share price in response, I suspect that some were expecting something even more whizzy. My observation as a holder is that THG are a well run company in a sector that has been hard to do well in in recent years. I think they represent good value going forward. DYOR.|
|1nf3rn0: 3 days till results. The share price suggests high expectations.|
|1nf3rn0: Share price at an 22 month high, hope the results live up to expectations.|
|knigel: Yes great results and back in at 11p. I particularly liked the comment the BOD made in the report about reducing the discount to NAV over the next year. I suggest 1) director buys 2) completing disposal of residential division 3) more contracts 4) resuming dividends and 5) increasing NAV further will do the trick! By this time next year the share price should be double current level if most of these targets are met imo|
|knigel: Agree, share price is a bargain but I doubt it will move much until the uncertainly in the stock markets calms down... tuck away for 2/3 years imo|
|1nf3rn0: Share price isn't reflecting "highly profitable returns" though. Muted reaction to the news.|
|jpjp100: on the back of the foodstores focus, I am going to have a dabble in these sometime in the next few days.
not viewing them as a real long term hold - I expect that they could become an acquisition target in due course.
But I think the gap between the current share price and the (higher) NAV (going on the basis that it is accurate) is just too big. The share price could double before these stopped looking cheap by some measures.
A bit of a punt, but its tempting me to dip my toe|
|johnsoho: Just received an email from Equity Development containing the following for THG:
Terrace Hill (THG) is a property company listed on the AiM market. It was
formed over 20 years ago, focuses on the UK and specialises in
commercial development and residential investment.
The shares are very modestly valued in relation to underlying adjusted NAV
and Triple NAV at the last reported balance sheet date at end-October 2009.
Share price discounts of 57% and 53%, respectively, which will have
widened since the year end in view of the underlying rise in property values
(IPD +8.5% to end-Jan. 2010), suggest that there is now limited downside
investment risk to the shares.
The Group is on a sounder financial footing, with all group and JV and
associated undertaking debt that required refinancing during the last year
agreed. Outstanding debt is substantially non recourse, with a weighted
average maturity of 31months and, although refinancings have been
characterised by higher interest rate margins, overall funding costs have
remained stable due to reduced LIBOR and swap rates. Development debt
capital for pre-let opportunities, where THG is strongly positioned, is more
available currently than the previous year.
Current levels of gearing appear acceptable, particularly in the context of
improving property market fundamentals. At end-October 2009, LTV (in
relation to adjusted NAV) and LTV including share of JV and associated
undertaking debt had risen to 59.4% and 73.1%, respectively, but are
estimated to have declined since the October year end.
THG operates in 3 principal business areas in the UK, commercial property
development and investment, residential property investment, and strategic
land, which acts to mitigate overall risks. In terms of gross assets, the
Commercial part is the most significant activity accounting for around 70%,
and in this sector THG is well positioned. Over 50% of THG‟s current
commercial development portfolio is comprised of Food Store Development
Sites where THG has a strong track record of out of town retail
developments, enjoys strong relationships with major retailers, and where
profit margins on GDV typically equate to 20-25%, with several retailers
generally competing for pre-let. Elsewhere within Commercial, THG has a
strong track record in office development with a number of current
developments in Victoria, SW1 where office rental growth is anticipated to be
strong, coupled with a number of pre-lets in the North East, North West and
7 April 2010
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