U And I Share Discussion Threads

[spectoacc] 03/11/2016 10:54

Ah thanks @eeza - good point.

[eeza] 03/11/2016 10:14

"The quantum of supplemental dividend paid as a proportion of net free cash flow will be decided by the Board following the end of each financial year and announced alongside its full year results. It is expected to be of a similar proportion to that paid in April 2015"

Proportion relates to %age and not £ amount.

[loobrush] 03/11/2016 09:37

Well in my mind UAI is doing very well and all is on trget to achieve profits as they planned and its asset value is way higher than the share price. The low share price baffles me a bit and I just think that there is some caution remaining after Brexit.
There is a site visit arranged for analysts shortly-I think its next week-or the week after, hopefully this will bring in more interest in the company.In any event value will eventually be recognised and I believe within 6 months the share price will be much higher than todays price which will be seen to be a bargain.

[spectoacc] 03/11/2016 09:04

@HP - plenty of REITs on massive discounts atm. Few are over-geared so it seems a bit strange to me. I've no table of biggest discounts but SMP is usually on a large one thanks to 9 Elms.

Re IC & UAI "specials" - no, I couldn't find any mention of it in last interims, but they must have got it from somewhere.

Edit - OK, that's because they don't deal with the specials in the interims. If you go back to Feb's finals (released in April) they say this:

"Our revised dividend policy will consist of two elements as follows: 1) An ordinary dividend, fixed at its current level 2) A supplemental dividend related to the level of net free cash flow secured in the financial year

Net free cash flow represents the surplus cash generated from development and trading gains after deducting the Group’s net finance cost, net operating costs, corporation tax charge and the ordinary dividend. The quantum of supplemental dividend paid as a proportion of net free cash flow will be decided by the Board following the end of each financial year and announced alongside its full year results. It is expected to be of a similar proportion to that paid in April 2015 and June 2016. The Board’s decision will be influenced by considering the Group’s future working capital requirements, the economic cycle, the Group’s current risk profile and its position in relation to its target gearing level. "


Still doesn't quite get you to IC's forecast figures but at least shows UAI's intentions.

[hugepants] 02/11/2016 19:23

OK the performance here has been disappointing but surely these are way too cheap again at a 43% discount to NAV? Is there anything similar that trades at this kind of discount?

Regarding the dividend the IC article is stating they will pay a supplemental dividend this year same as last year (8p). Have the company said this or are the IC just guessing? Even if there is no supplemental dividend then yield is just under 4% which is pretty decent.

[doublestexan] 26/10/2016 11:53

Interesting reading here. Looks like the share price may have some
room to grow,does look like a traders stock IMO. If a spinoff is in the making as mentioned above, it probably
will be accompanied by some large share purchases from II.
Regarding small purchase of shares by director ; it could be a gift
for a child. Good luck all

[speedsgh] 25/10/2016 13:22

salchow - Yes, Richard Upton has bought heavily over the past 12 months which I have previously noted. Not that RU would care about such things but sentiment-wise he would probably have been better not buying anything at all in this instance. Such a small amount is bound to get investors asking questions. However, in the grand scale of UAI things, it is probably an irrelevance.

[skyship] 25/10/2016 09:24

With hindsight that was a great selling opportunity at c190p last month. A strong recovery peaked at the falling 200day MA. Since then we've fallen 16% back to the Fib 61.8% retracement level - should provide the Technical support we need.


free stock charts from uk.advfn.com

[eeza] 25/10/2016 09:11

Looking forward to the new subsiduary. Branded ! Am.

Lol.
U&I; I AM
FFS

[spectoacc] 25/10/2016 08:49

....Hopefully not the company's petty cash box.. ;)

[salchow] 25/10/2016 08:36

SP action tells me now may not be a bad time to buy. I got in lower than current price and am hoping that July was the low but obviously subject to general market. Clearly at 250 plus it was too high and I would not expect to see that again for a very long time. Don't know why he bought 2,500 shares but as I explained he has made significant buys. Perhaps he found a petty cash box that had been overlooked!

[eeza] 24/10/2016 20:33

Better by far if he'd saved it in a piggy bank until he had enough to make a worthwhile purchase.
Piddly buys show contempt for s/hlders - it's not as though he was being paid peanuts.

SP action tells you all you need to know.

[salchow] 24/10/2016 20:01

speedsgh - a bit unkind when he has spent over £363,000 on shares over the past twelve months. His last previous purchase was for £74,309 on 10th August. I don't suppose he can do that every month.

[speedsgh] 24/10/2016 12:04

Without wanting to add fuel to the fire of Horndean's repetitive bleating, it has to be said that the purchase of 2500 shares by Richard Upton (Deputy Chief Executive) notified today is hardly likely to inspire confidence. If anything such a token purchase will more likely be construed as a lack of confidence in the outlook for his own company.

Director/PDMR Shareholding -

[loobrush] 21/10/2016 20:17

INVESTORS CHRONICLE TODAY

UAI expects to pay further special dividends (8p in 2015 and 2016) equivalent to 40-50 per cent of free cash flow. This implies a yield over the next three years of 5 per cent, 11 per cent and 10 per cent, on Liberum's figures. But, despite this, the shares trade on a whopping 43 per cent discount to Liberum's adjusted NAV forecast of 280p at February 2017. We're sticking with our long-standing tip
Buy.

[horndean eagle] 21/10/2016 17:20

Given the huge salaries being drawn you would have thought they might have brought a few more shares than the paltry number they did. No doubt huge salaries include big profit shares from developments. That's where most of the profits end up. Benefit of management rather than shareholders.

[speedsgh] 21/10/2016 16:09

3 big trades now showing. Appear to be open orders that went straight through fairly close to the quoted offer at the time so are likely to be buys although one never can be sure. If they are buys, they look too big to be Director/PDMR purchases so most likely IIs. Aimho

08:50:51 - 248057 @ 160.0 (158.75-160.25) £396,891
10:42:09 - 538000 @ 160.0 (159.25-160.50) £860,800
11:53:44 - 300000 @ 160.0 (159.00-160.00) £480,000

[loobrush] 21/10/2016 15:28

2 Big buys today-they understand that it is too cheap at todays price even if some here don't.

[jl9] 21/10/2016 15:15

Total law unto themselves - as I said 2 or 3 years ago.

[jl9] 21/10/2016 14:45

Weiner: "The business became complicated, especially to investors.”

Damn! If only we UNDERSTOOD! And I was thinking management were to blame!

[davidosh] 21/10/2016 10:39

Mr Weiner received £2.1 million in remuneration in 2015 and £1.6m to March this year in a £200m market cap company that is excessive. The share price chart suggests it is not a remuneration that reflects success and great returns for shareholders. The ten year chart in their own AR shows TSR flat compared to REIT index up 100% so they have shockingly underperformed

What is happening here ?

[speedsgh] 21/10/2016 10:02

The following article dates back to Feb 2016 but an interesting read all the same...

Interview: Matthew Weiner and Richard Upton of U+I -

The U+I’s executives discuss the firm’s ambition to become a PRS heavyweight.

It was a case of opposites attracting. One company was known for its corporate structure, while the other was recognised for its edgy approach to real estate. So when Development Securities and Cathedral Group merged, it certainly took the industry by surprise.

Now nearly two years on from the merger, the resulting company - rebranded U+I in October - has a combined strategy that seeks to build on both DevSecs’ and Cathedral’s diverse strengths. And its leadership - chief executive Matthew Weiner and his deputy Richard Upton - are keen to talk about their vision for the business, not to mention the creation of a spin-off company dedicated to the private rented sector (PRS).

Sitting in U+I’s new Victoria offices, the odd couple seem dressed to accentuate their differences. Cathedral founder Upton is tanned and wearing a bright pink shirt with a snazzy waistcoat, while Weiner is sporting a traditional blue pin-striped suit. But they are clearly attuned to one another’s way of thinking.

“If you [did] a Venn diagram, Richard and I each have a circle of influence, ideas and skill set,” says Weiner. “But the bit in the middle will have integrity, ethics and values, and that is the key part.”
Weiner and Upton have set out a three-point plan for U+I that will see it focus on bigger developments, overhaul its approach to investment management, strike up new joint-venture partnerships and ultimately deliver some ambitious returns. The greater focus on fewer projects is particularly important.

At its peak, DevSecs was juggling 75 development projects, with 20-odd investment assets on its books. That will be scaled back to around 30 to 40 projects with 15 to 20 investment assets. “It’s an evolution, not a revolution,” says Weiner. “What we do, we do well. But some things we do have to look at. The business became complicated, especially to investors.”

PRS push
New partnerships will also be key to success. U+I already has projects in partnership with local authorities and government worth £1.4bn in gross development value and will look to increase its dealings with the public sector, says Upton.

“We cut our teeth working at the difficult ends of the market where others can’t be bothered because they are chasing the bright lights in the centre of London,” he explains. “We are where ordinary people with ordinary jobs live. These places have sensible metrics and longevity.”

Weiner agrees, adding: “We look for projects with complexity that are not big enough for the REITs, but are too big for a local developer and too mixed-use for a housebuilder.”

A key element in the mixed-use arena is PRS. As Upton reveals on page five, U+I intends to go out to the market at the end of this month to find a finance partner with which to launch a dedicated PRS business, currently dubbed I Am. Building the brand will be critical to the new venture, he says, arguing that it is incredible that there is no recognisable consumer brand for PRS. He draws a distinction between the new brand and more corporate brands.

“The PRS business will have more the appearance of Virgin or BMW than Ballymore or Berkeley, because it’s competing for customers’ monthly wages,” says Upton. “If you create a really happy place where people are going to feel safe, they are going to stay, creating less turnover, fewer voids and a better investment.”

Including a significant PRS element within wider mixed-use regeneration schemes could also help revive town centres, Upton argues. “High streets, particularly in suburbs and towns, need to reinvent themselves,” he says. “Getting disposable income into town centres is a key part of that.”

But the focus on PRS is also about ensuring the sustainability of the U+I business as whole. According to Weiner and Upton, the spin-off business will provide a hedge against the next downturn.”We can see [the next recession] on the radar, and I predict that this PRS platform will explode when it comes,” says Upton. “When pressure comes off the speculative for-sale market, the capacity will come back into the construction market, land prices will come down and delivery will become more straightforward. We’re teeing ourselves up with this platform so we will be well set for the next recession.”

As part of that plan comes the new name, U+I. It is fair to say that the new brand has had its detractors, with commentators of a certain generation recalling 70s kids’ TV programme You and Me.

It turns out the name was inspired by the “Be united and industrious” motto of a union that met in a former pub on a site in Greenwich that DevSecs and Cathedral Group bought in 2012.

“To avoid the new philosophy taking too many generations to develop, we moved into a new home with a new name,” says Weiner. “If we had stayed as Development Securities we would have lost the energy of the integration.”

For Upton and Weiner, the name perfectly sums up the characteristics of the partnership. Individually, DevSecs and Cathedral may have been polar opposites, but together U+I is a united and industrious beast.

[speedsgh] 21/10/2016 09:56

IC continue to see positives in UAI...

Back U+I's fast-growing development pipeline -

Mixed-use property regeneration specialist U+I (UAI), formerly Development Securities, has the distinction of being the first real estate company to report figures that included the effects of the referendum. Predictably, the ensuing uncertainty had valuers reaching for the red pen, and adjusted net asset value (NAV) per share fell from 291p in February to 272p.

However, trading and development gains of £11.5m were higher than expected, and a further £11m was secured after the half-year end, with a medium-term target of achieving annual gains in excess of £50m. Over £1.5bn of gross development value was added to the development pipeline.

As well as winning new regeneration projects, U+I also secured a £200m joint venture to secure income-generating assets in the capital, and further specialist platforms could be created to cover 'build to rent' and office refurbishment, where U+I is paid a fee.

Gearing was down from 44 per cent at the start of the financial year in February to 38 per cent, while lower recurring overheads and higher net management fees are expected to generate £2m in FY2018.

U+I expects to pay further special dividends (8p in 2015 and 2016) equivalent to 40-50 per cent of free cash flow. This implies a yield over the next three years of 5 per cent, 11 per cent and 10 per cent, on Liberum's figures. But, despite this, the shares trade on a whopping 43 per cent discount to Liberum's adjusted NAV forecast of 280p at February 2017. We're sticking with our long-standing tip (170p, 22 May 2013). Buy.

[loobrush] 20/10/2016 10:56

Director buying this morning-at least he thinks UAI is cheap like I do.

I see there is an analyst and investor day next month-perhaps this will prompt interest