Capital & Counties Prope... Share Discussion Threads

[nickrl] 29/6/2022 18:42

EIiIs it better to be in CAPC or SHB pre the merger?

[essentialinvestor] 29/6/2022 15:05

Added a small amount.

[tanja1000] 31/5/2022 12:54

5 PROMISING TAKEOVER CANDIDATES IN BRITAIN.....

hxxps://www.undervalued-shares.com/weekly-dispatches/5-promising-takeover-candidates-in-britain/aff/9/

[tanja1000] 31/5/2022 12:53

5 PROMISING TAKEOVER CANDIDATES IN BRITAIN

hxxps://www.undervalued-shares.com/weekly-dispatches/5-promising-takeover-candidates-in-britain/aff/9/

[tanja1000] 31/5/2022 12:53

5 PROMISING TAKEOVER CANDIDATES IN BRITAIN

hxxps://www.undervalued-shares.com/weekly-dispatches/5-promising-takeover-candidates-in-britain/aff/9/

[nickrl] 08/5/2022 20:04

Merger with SHB being explored according to media reports

[essentialinvestor] 25/2/2022 15:50

Solid performance given the backdrop.

IC Sell recs are often good contra indicators.

[essentialinvestor] 23/2/2022 15:38

Sell from the IC as expected! - possibly a nice contra buying signal me thinks.

[essentialinvestor] 23/2/2022 12:23

Added a small small amount.


Nick, you will be more capable of doing a deep than me, on my rudimentary take
they read well and CapCo look well placed to benefit from return to normality.

I expect IC to say Sell as per the last H1 results.

[nickrl] 23/2/2022 11:49

FY results out today and suppose one positive is NTA barely changed although you have to dig into the numbers to see whats going on and tbh i get lost in these big popcos with JVs as to what the true situation is so its highly possible im misinterpreting things so dyor.

Its low dividend means it currently uninvestable to me and would be surprised to see its divi move up significantly from here to get into >3% yield but it is the West End and overseas investors seem to like trophy assets. Anyhow as it has read across to BCPT and SHB (no interest in that one either) had a read through.

Certainly good to see leasing activity well up although as to what terms they are offering is difficult to determine but carrying a 43m lease incentives in the books says a fair amount to me but if the economy holds up then good investment for future income.

Don't get the logic of holding c320m in cash and an undrawn RCF of £300m which has a cost to it or maybe they want quick access to funds to absorb SHB although that would need alot more than that. Post year end they are redeeming some 3.6% private placement notes but at a premia of course. Nett impact is interest charges absorbed 26m but will reduce in future years to c23m.

So even with improved NRI admin costs and interest charges have utilised most of this years cash leaving the divi uncovered. There may also be a useful increase in SHB divi as well to add in so along with improved NRI a modest divi increase will happen but yield won't hit my 3% threshold unless share price tanks.

[essentialinvestor] 02/2/2022 18:59

Two becomes one very likely to happen imv and would guesstimate a primary
driver behind acquiring the SHB stake - it also become available so that explains the timing aspect.

My only concern is a rising rates backdrop re valuations.

[nickrl] 01/2/2022 23:17

Sky i agree but my thoughts on SHB haven't come to pass and have gone up further so my planned short six months ago would have been well out of the money. There is a premia attached to quality London assets especially by overseas entities who are quite happy with lower yields than most of us would take for a propco/REIT. I still wouldn't be surprised to see either a merger between them or either of them taken out if its clear unhindered international tourism is back.

[essentialinvestor] 31/1/2022 16:25

Much appreciated SKY.

[skyship] 31/1/2022 16:23

Hi EI

Further to your post on the COA thread.

Personally I don't like London assets and I don't like Retail. I believe both CAPC & SHB to be over-valued versus the far better value REITs featuring on the CP+ thread.

CAPC possibly on a 15% NAV discount if we don't see a further impairment; and I for one would seriously impair their SHB holding.

Compare this with the likes of AIRE, BREI, HCFT & SREI...

My current two Best Buys:

# BREI @ 91.90p - Discount = 24%; Yield = 4.35%

# HCFT @ 939p - Discount = 20.8%; Yield = 6.08% (Both historic & likely higher)

[sheareralanco] 20/8/2021 19:52

3 BRITISH REAL ESTATE COMPANIES THAT COULD RECEIVE A TAKEOVER BID

hxxps://www.undervalued-shares.com/weekly-dispatches/3-british-real-estate-companies-that-could-receive-a-takeover-bid/aff/9/

[sheareralanco] 20/8/2021 19:52

3 BRITISH REAL ESTATE COMPANIES THAT COULD RECEIVE A TAKEOVER BID

hxxps://www.undervalued-shares.com/weekly-dispatches/3-british-real-estate-companies-that-could-receive-a-takeover-bid/aff/9/

[essentialinvestor] 10/3/2021 14:04

Looking to add to weakness.

However, as mentioned a hell of a lot hinges on the outlook for COVID.

[konradpuss] 10/3/2021 11:55

Earls Court will be mostly residential so I beg to differ that it was sold at 'peak cycle valuation'. Delancy has a good track record in respect of BTR (build to rent).

Not sure the purchase of the Shaftesbury stake was a smart move. Time will tell on that one.

[essentialinvestor] 10/3/2021 11:30

BOD deserves some credit here.

Disposing of the Earls Court asset at peak cycle valuation and
snapping up the SHB stake near the trough.

In terms of whether this is a dead cat bounce largely depends
on whether Covid-19 restrictions are coming to an end.
Overseas visitors also a significant factor, so airline travel returning to normality etc.

[konradpuss] 09/3/2021 20:29

Irish, the main Earls Court site was sold to Delancy.

The old car park opposite is being developed in a joint venture. This is still on the balance sheet.

A great bounce (dead cat perhaps?) from the bottom.

The valuation and rent collection truly terrible.

[essentialinvestor] 09/3/2021 20:02

SP around 60% off the lows.

[irishmatt] 09/3/2021 13:21

Earl's Court is sold

[nickrl] 09/3/2021 13:02

CAPC results out only skimmed headlines



- EPRA NTA 212 pence per share, a decrease of 28 per cent (2019: 293p)

- Group net debt to gross assets ratio of 28 per cent (2019: 15 per cent)

- ERV decreased by 22 per cent (like-for-like) to £81 million (2019: £108 million) and equivalent yield of 3.91 per cent (2019: 3.65 per cent)

- Reported net rental income down 74 per cent to £16 million against December 2019 and underlying net rental income down 30 per cent (like-for-like) to £44 million

- EPRA vacancy is 3.5 per cent (2019: 3.2 per cent)

Much of this had already played out at interims but shows the destruction of value inflicted from the situation. Void rate is unexpectedly low but probably because they've agreed significant levels of forbearance / deferrals here and will probably have to write off more to retain tenants.

[undervaluedassets] 24/2/2021 18:05

have a "sighting" amount here.

Trades under net tangible asset value.

Earls Court and Covent Garden come back to life.