Unite Share Discussion Threads

[maddox] 07/1/2010 21:40

It is very clear that institutional buying is driving the share price up (and down). Any more FIs coming on board are going to find the share price moving sharply against them and this should consolidate the move above the 300p mark.

I also note that Investor's Chronicle is celebrating Unite as their best performing tip of the year with a 520 per cent gain - clever chaps!

Regards, Maddox

[trendfloor] 07/1/2010 16:21

Detailed Broker Forecasts 2009 2010

Date Rec Pre-tax EPS DPS Pre-tax EPS DPS

KBC Peel Hunt Ltd 22/12/2009 BUY -41.6 -33.9 -36.9 -22.9 1.50

Evolution Securities Ltd 01/12/2009 BUY -13.6 -10.0 -2.00 -1.30

Numis Securities Ltd 01/12/2009 BUY 0.70 39.9

Noble & Company 11/11/2009 8.90 -8.90 12.7 7.90

[jockthescot] 06/1/2010 11:51

Hi Maddox,

I feel they have the correct strategy currently in focussing on their London assets/development. Their rents are slightly punchier than "market rents" but it seems that the demand / supply dynamics mean that they can currently do this. Sustainability of these rents and level of rental growth going forward is an issue but planning is not getting any easier meaning the supply / demand dynamics are not improving. International students is the big game in London, and one concern I would have stems from Govt intervention given the current economic woes with the UK financially. See -
That said, they currently have rental growth and solid investment credentials I think.

Jock

[maddox] 06/1/2010 11:05

Hi Jock,

It would be highly valuable to get your views based on your working knowledge of the industry. What's your experience and views of Unite's prospects?

Regards, Maddox

[trendfloor] 06/1/2010 10:11

Some bullish TA from a US site here...

[jockthescot] 06/1/2010 09:32

Have taken a postion based on the current chart and my knowledge from working in the industry.
Feel postitive about current state of affairs.

Jock

[maddox] 05/1/2010 22:21

Hi Roch,

Yep, can't argue with that - and those exceptional circumstances have been the acid test for Unite's business model. The fact that it has been extremely resilient and the competent manner in which the mgt team handled it gives me real confidence in their ability to deliver NAV growth.

Regards, Maddox

[rochdae] 05/1/2010 22:07

Hi Maddox,

I just like the business model - guaranteed yields, growing sector, London property etc..

Best returns on buy-to-let must be student accommodation. Rich overseas students, good non-fussy tenants.

And the chart also looks set to storm ahead.

Rather surprised at the meltdown, but exceptional circumstances really.

Anyway, look forward to a healthy rise from here.

Roch

[maddox] 05/1/2010 21:51

Hi Chaps,

Nice to have some more company on here. Its a mystery to me as to why Unite hasn't had much of a following? In fact, I cannot understand why it hasn't got a massive following!

So, I don't think its PIs that are driving the price forward but FIs. I see that we have just had another new name surface above 5%, namely Cohen & Steers Inc with 6.09%. This firm appears to be a specialist property investor with a number of property funds. I presume that this might be a positive reaction to Unite moving into the FT250 that might be an investment criteria for some funds.

So trendfloor and rochdae is the trend your friend or are you looking at the fundamentals?

Regards and Happy New Year, Maddox

[rochdae] 05/1/2010 15:25

Well, I've certainly been buying. Hardly any posts on this tread - just the way for a steady climb.

[trendfloor] 05/1/2010 15:24

Some very strong broker backing aswell;

UNITE Group PLC

FORECASTS
2009 2010

Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

KBC Peel Hunt Ltd
22-12-09 BUY -41.61 -33.94 -36.88 -22.89 1.50

Evolution Securities Ltd
01-12-09 BUY -13.60 -10.00 -2.00 -1.30

Numis Securities Ltd
01-12-09 BUY 0.70 39.90

Noble & Company
11-11-09 None 8.90 -8.90 12.70 7.90

[trendfloor] 05/1/2010 15:08

Unite, Tipped by Investors Inteligence today...

For Unite Group, a breakout looms after it staged a healthy advance to the important 300p resistance (see right). As this is the fourth attempt, a break above the resistance would constitute an important buy signal.

[rochdae] 04/1/2010 13:41

Just a little more and off we go!

[rochdae] 29/12/2009 16:35

Commercial property back in vogue today. Sector needs another push I think.

[maddox] 23/12/2009 16:50

Another tick in the box....

Unite have exceeded their £150m target fundraising for their Unite Student Accommodation Fund (USAF) by raising £167m. Its also worth noting that this December was the first opportunity for the original investors in the USAF to redeem their holdings. The fact that none appear to have yet done so is testiment not only to the performance of the fund, by comparison to the market, but also to their confidence in the excellent future prospects. Afterall, they might have also considered moving some capital into other bombed-out property funds with a view to reaping recovery gains.

Merry Christmas, Maddox

[maddox] 16/12/2009 13:52

Its good to see some fresh mames on the >5% holders list - Orange European Property a Dutch fund and Cohen & Steers.

I see on the Cohen and Steers website that they are seekers after dividend income as they state:

'Our passionate belief that dividends provide an important part of an investment's total return and overall diversification has been the foundation for our portfolio strategies. We believe the significant growth in our assets under management over the past two decades reflects the growing demand for dividend-paying equity investments.'

So Unite must be a 'diversification' for them: Whilst Unite may reinstate the small dividend that they used to pay I expect most of their cash to be recycled back into development.

Regards, Maddox

[rochdae] 16/12/2009 11:32

Move back up to 300? And a break through.

[maddox] 10/12/2009 17:39

Hi investinggarden,

Do you have an interest?

The other news is that Unite has joined the FT250.

Regards, Maddox

[investinggarden] 10/12/2009 11:24

UNITE raising £150m

[maddox] 02/12/2009 00:18

You have to give credit to Unite's management team for the speed with which they have turned the situation around. Hot on the heals of the share placing now comes the further financing of Unite's Student Accommodation Fund. This makes a stark contrast with the capital redemptions suffered by other commercial property funds.

The new capital provides the funds to buy the next series of completed properties developed and managed by Unite. All we need now is to see a string of land purchases to build on. I don't expect we'll have to wait too long....

Regards, Maddox

[dondee] 20/11/2009 14:04

Warren Buffett's company has lined up an $8 billion loan to help pay for its $26.3 billion acquisition of Burlington Northern Santa Fe Corp.

[rochdae] 19/11/2009 13:47

Nice update today. Saw them on the telly a few days ago - bright spot in London construction etc... Should be much higher but a poor day in the market.

[maddox] 19/10/2009 16:41

Hi Jarvo2,

The OCB JV provided the all important finance to underpin the current development pipeline. It thus removed financial risk rather than business risk. This then cleared the way for the successful share issue.

It is when things go awry that you can really judge the competence of the management team. Clearly, Unite has been severly tested but has come through it and, as you say, is looking good for the future, with funds in hand and excellent opportunities available in a buyers market.

Regards, Maddox

[jarvo2] 19/10/2009 15:43

Hi Maddox,

I'm with you. Been in since £1 and their model seems simple and effective. You buy up land at firesale prices with the recent rights issue, build low cost rooms to let to students in a market place that has an increasing shortage of rooms and keep increasing the rent by 10% pa. They have even got a mid eastern investment company to share the risk ~ although I find it hard to work out what it is. Anyway if they buy more land with the rights issue money I look forward to an expansion of the model with ever increasing profit pushing up the shreprice. I am definitely holding until c.£5 unless it gets taken over before then.