Daejan Share Discussion Threads

[retsius] 14/10/2016 18:05

Held up rather well in the past few days,especially x div.
Interims in a months time.
R.

[retsius] 12/10/2016 12:58

Trading x div. tomorrow
R.

[trytotakeiteasy] 04/10/2016 12:17

Debated on this threat the impact of the US assets. Given the higher gearing on US assets the actual equity value (net of debt) in the US is less than gross assets implies. At the same time the high gearing level on US assets means that and valuation gains have a larger impact. Since the March valuation the pound is down around 10% against the dollar. So this might have a 2% positive impact but will probably be offset by weaker UK assets. On balance the best result is probably a flat valuation at the end of September. We will find out when the group updates in November.

[retsius] 04/10/2016 10:15

At last a tailwind!
X div 13/10... hopefully see some more appreciation in the share price in this increasingly buoyant market.
US assets must have enjoyed gains due to the weak pound. Not reflected yet in the share price yet.
R.

[trytotakeiteasy] 27/9/2016 16:31

I think I looked before and the net investment each year is around 2% on an annual basis versus the total assets. So this will help generate an annual net asset value growth other things being equal

[bisiboy] 27/9/2016 13:35

I think the nav could be over £100.00 by the end of next year!

[trytotakeiteasy] 27/9/2016 12:35

Succession is the main issue for me.. what happens after the second generation?

I think though the NAV will be over £100 in under three years due to reinvestment and the strength of US assets. Therefore I can't see the share price being below £50 in under three years.

As such from a medium-term perspective it looks like a good risk-reward ratio. It is just in the short-term everyone is focused on Brexit and the potential impact on London. That is the key risk for Daejan that their London assets see a meaningful decline in value.

[tmfmayn] 27/9/2016 11:18

cheriton -- my records show DJAN has spent about £200m on 'acquisition and development of investment property' during the last five years, with almost £80m received from 'proceeds from sale of investment property'. I think the latter may involve proceeds from extending/enfrachising leaseholds.

Also, I get the impression a lot of renovation work (e.g. Africa House) is expensed against earnings, whereas other property companies will happily capitalise such expenditure onto the balance sheet. So I think the actual cash-flow capex number understates the activity level of the group. Renovation work ought to lead to increased rent and NAV, which I guess is a fair substitute for simply acquiring other properties.

Did you go to the AGM? Was there any particular insights revealed? I could not make it.

[ch3riton] 27/9/2016 10:55

topvest - just noticed your comments on Directors' salaries. Looking at past reports one thing to notice is that they have actually bought very little property for many years. Acquisitions often below £10m in the UK and even in the US have been intermittent. So these million pound salaries are mainly being paid for rent-collecting. They have a record of being very shrewd but even so the salaries seem quite high for refraining from doing very much.
Have noticed you on various property etc co threads. Did you go to the Daejan agm - or might I have met you there in the past? Next year I think it might be time to ask some questions about the UK property, vacancies etc.
Cheriton

[trytotakeiteasy] 21/9/2016 08:11

retsius - roll on the interim results in November!!! If I recall correctly they provide an informal estimate of valuations in the interims. I think their caution in the final results for last year will prove to have been largely unfounded. Fall in the pound could mean that the valuation improves in the interim results. We shall see.

[retsius] 20/9/2016 20:10

Splendid finish today,all we want now is ST to revisit the share.
Almost in profit!
R.

[tintin82] 16/9/2016 13:17

Chronicly undervalued?

[retsius] 16/9/2016 12:02

Anyone any ideas for price rise?
R.

[retsius] 16/9/2016 11:04

Very positive today.Not much difference in price spread which is unusual for this share.
R.

[trytotakeiteasy] 13/9/2016 17:29

AGM today...no real information until the next update in November. Annual report seemed to read well though.

[tintin82] 13/9/2016 17:11

Interesting trades going through, very strong volume. Any thoughts?

[trytotakeiteasy] 30/8/2016 15:24

Three months until interim results in November...I think Daejan will be relatively resilient but we shall see...I spoke too soon... close to a 40% discount to NAV now....should be a bargain by conventional measures..

[retsius] 23/8/2016 17:23

My sentiments entirely,still just under water with this share but it has recovered strongly from £44. Now on to something called profit!
R.

[trytotakeiteasy] 23/8/2016 13:43

Now made back Brexit losses and then some.... I doubt NAV will fall too much if at all in the next update..... can't be long before NAV breaks the £100 level (a few years) and this will make the current share price look like a bargain..

[retsius] 17/8/2016 10:36

Better!
Hope it does not revert to negative at the close!
R.

[trytotakeiteasy] 03/8/2016 23:25

topvest - not a disaster salary wise as no share options which is good. Just pointing it out. Tone of report is slightly pessimistic given Brexit but they are always cautious really. Given the US exposure I wouldn't be surprised if Daejan see an NAV increase this year.

Probably interest rate cut tomorrow. Agree that it is a well run company.

[topvest] 03/8/2016 21:50

Yes, I noticed that salaries were edging-up. Think the pay levels are fairly reasonable for a property company of this size though. London property directors get very well paid. Given that they are majority shareholders I think they are very reasonable in terms of what they take out of the business. It's all relative of course, but given that they have hundreds of millions each tied-up in the business, I don't think its an issue.

If they wanted to act badly to minority shareholders they have had plenty of opportunities, but have always treated us well. The Board is very fair in my view and treats shareholders properly. I expect this to continue.

[trytotakeiteasy] 03/8/2016 13:13

reasonable annual report. However, main director salary continues to escalate. Up 10% during the year. Two main family member directors running the business are paid £1.1m each. Is that a fair salary? I will have to research.

daejanholdings.com/perch/resources/reports/167483daejanholdingsplcra2016-web.pdf

[retsius] 26/7/2016 19:24

Great recovery in share price from £44. If I had only bought then.........
Still my thoughts of suicide have retreated for now.
R.

[trytotakeiteasy] 07/7/2016 11:10

Interesting if you go to the annual report for the year to March 2009 and the group was also boosted by a stronger dollar. This offset much of the slump in UK commercial real estate

hxxp://daejanholdings.com/perch/resources/reports/ara-2009.pdf

Issue now is whether this downturn will be as bad as 2008/2009. Looks unlikely to me with Brexit hardly equivalent to the global financial crisis.