Daejan Share Discussion Threads

[retsius] 12/7/2017 22:00

TTTE
Have you seen Carillion this week?
OMG shades of RBS

[retsius] 12/7/2017 21:58

TTTE
Yup, saw that,but remember £29 m exchange gain,£14m gain on sale of property and uplift in property values giving the increase in NAV
Ten years ago from the accounts, they only had about £46m in the states.
R.

[trytotakeiteasy] 12/7/2017 20:56

Interesting going through the results (page 8). Only 16.7% of equity assets are in the United States. This is because the US assets are more highly leveraged. I.e. while 25% of the portfolio is in the US the actual equity is less due to more debt against the US assets.

[retsius] 12/7/2017 16:41

TTTE
Not a bad day all in all. Very reassuring figures. Hopefully we can build on it.
R.

[trytotakeiteasy] 12/7/2017 16:26

Amazing that 3,500 shares sold today i.e about £225k. Just seems to have been continual selling for sometime. I can't see how Daejan can be worth less in two year's time so why sell now? In the stock market it is all about the flow of funds in particular areas and sentiment. UK real estate very much under the cosh at the moment.

[retsius] 12/7/2017 11:57

Better!
It has now reached a price of two years ago when the NAV was £85!
R.

[trytotakeiteasy] 12/7/2017 10:16

bisiboy -

look at the line in the accounts headed: Profit on disposal of investment property.

They have always seemed to sell the few assets they do sell for a profit (i.e. above the value on the book). This has been the case even through the financial crisis. Granted property sales aren't large but it does indicate that the valuation of the overall portfolio is probably conservative.

[bisiboy] 12/7/2017 09:11

I am sure you are right but where did you see the sale was above book value

[trytotakeiteasy] 12/7/2017 07:52

Overall rents were slightly up. However, net rents were off due to higher costs. I have no idea what they related to. On the valuation front they have continued to sell assets from the portfolio at above book value. Net rents have sometimes been volatile on a year-on-year basis. This year may reflect costs for building the hotel in East London for example. But I am not sure they would be included in the cost line for net rents.

[retsius] 12/7/2017 07:33

TTTE
Re read your comments on Rental income decline and agree that is a slight concern, would like to know why,but then set that against that the net property revaluation rise of £ £144m!! Nuff said.
R.
Ps. If the share does not rise today ,then..............

[retsius] 12/7/2017 07:26

TTTE
Crackerjack results with ,as you stated ,NAV over a 'milestone'£100!( check my previous hunch on this)
So all we have to hope is the share price reacting favourably!?
All the decline we have seen since Feb, totally unwarranted. Business very well run and I am very pleased.Property values can rise and fall but like any business you have to plan for possible future problems. I am happy to say Daejan does this to my complete satisfaction ;all I am hoping now is some re- igniting in the market of the share price
R.

[trytotakeiteasy] 12/7/2017 07:06

£101.61 NAV - Much better than I had hoped. Puts stock on a 38.5% discount. EPS even up on a year ago at £9.93 (including property gains). It is hard to see the share price not reacting positively in my view. Full year dividend up 5.4%.

A slight negative is a decline in net rental and related income due to higher costs. Not quite sure what happened in the second half on that front as I think it was up in the first half.

[essentialinvestor] 11/7/2017 17:08

Time to sell some UK REITS was around mid '15 when many sat on fat premiums
to NAV.

[sirhedgealot] 11/7/2017 16:53

Oooh arrr. That is inconvenient. Gla current holders.

[trytotakeiteasy] 11/7/2017 14:55

Painful... someone remind me why I invested in this again!!! The reality is that it is the of funds and not fundamentals driving share prices. At the moment the message is head for the doors on UK property.

Retsius - valuation will be driven by what external valuers do with the UK assets. That is hard to call given current economic backdrop. Rental income should inevitably increase.

[retsius] 10/7/2017 20:24

TTTE
Glancing through last year's accounts and they were excellent.
Can't see problems with full year but as there is so little info. given out over the year, a shareholder starts to have mysterious thoughts!
The Interims were excellent with £20 m currency gains, and £2.4m rent increases in the States,this must have continued with a following wind as the £/$ hasn't changed.
Gearing in the UK 7.5%!
Must be steady results at the very least!
R.

Ps I am still sticking my neck out for £100 per share valuation or VERY near to it.

[trytotakeiteasy] 10/7/2017 11:47

Market value off £26m or 2.6% on the basis of £14,000 in shares sold. Hopefully Wednesday is better!

[trytotakeiteasy] 07/7/2017 14:38

33.7% discount currently at a share price of £63.5.

Great Portland Street's recent results seemed ok. Putting aside the NAV for a moment and the net rental income is important to follow. NAV is largely out of Daejan's hands. Looking at Derwent London and Great Portland and both companies emphasise ERV (estimated rental value). This is what their properties would achieved today if rented at current market rates. For Great Portland the uplift is I think about 60% while for Derwent I think it is 85%. This is because lots of their properties are on legacy rental arrangements on below market rents.

It would be interesting if this is also the case for Daejan which I assume it is. As such there should be a lot of scope to increase Daejan's net rental income even if the UK economy flatlines.

If I every do go the AGM I will ask them to provide more detail in their annual reports on property locations. Just saying Greater London doesn't reveal much. Offices in the city are very different to offices in the West End for example.

[retsius] 07/7/2017 14:11

35% discount to last NAV.*
Looking forward to next Wed.'s results.

TTTE :did I get that right?
R.

[trytotakeiteasy] 06/7/2017 10:56

Edit - got a bit carried away there!!

[trytotakeiteasy] 05/7/2017 11:51

apollo - this isn't a company to invest in if you want lots of updates and shareholder communication!!! They only do two updates a year i.e. the legal minimum...

[apollocreed1] 05/7/2017 11:43

I phoned the company and they tell me that Full Year Results are out on 12 July. Most websites like FT, Google Finance, Bloomberg give an estimate of 5 or 7 July. Why don't Daejan clearly state the date on their website? Seems very disorganised!

[retsius] 04/7/2017 14:35

You spoke too soon!

[trytotakeiteasy] 04/7/2017 12:47

Life in the old dog yet. Bring on the results!!!! In a few days time I will be saying I am so glad I always owned this!!!

[skyship] 03/7/2017 17:53

TTTIE - Yes, the perennial problem with DJAN is that it is more than 80% owned by the family. So they yield just 1.9% as the family view DJAN as their personal pension fund. Quite happy to accrue value....so why pay out dividends to residual small shareholders.

Hence DJAN is a Value Trap.

That said, time it right and you can make the occasional turn as 2013/14 showed.

But hold long term and value is eroded when you take that miserable yield into account. Lose 3%pa for 5yrs and you've blown 16%!

For another propco take a look at PCA...may not set the world alight but the 5% yield and 14% discount certainly underwrites the investment.