Daejan Share Discussion Threads

[russman] 12/8/2019 07:32

Doubt the Freshwaters would "sell" the family heirloom.
Corporate governance has progressed in the last 20 yrs.
The Chairman's role is to lead Daejan with respect to all shareholders equally.

[konradpuss] 11/8/2019 15:51

Topvest, I cannot argue with that. The discount might close when you least expect it. Plus with this over 50% discount to NAV there is a goodly amount of 'margin of safety' as you state.

[topvest] 11/8/2019 15:07

Well I think these are good value. 20 years ago, they were £10, 10 years ago they were about £30 and now they are £55. The dividend has also increased by more than inflation. I'm happy to hold / add more on the back of this sort of performance, with a reasonable prospect of a discount narrowing crystallisation in the next decade? Its not a get rich type of investment but it has a large margin of safety.

[konradpuss] 09/8/2019 12:35

Topvest, don't you mean the next millennium!

[topvest] 09/8/2019 12:03

Results were pretty good I thought.
Presumably they put individual properties into separate subsidiaries.
I believe that they have a former PwC partner as the FD, albeit not a Board member.
Happy to hold and may add more actually.
Key question is what happens when these two are too old to run the business? Their children don't appear particularly interested. If the company was sold / merged with another property group that would immediately eliminate the 50% discount. A nice potential upside for the next decade. In the meantime, it's a reasonably steady performer and a safe home for your cash.

Mr B S E Freshwater. Aged 71 – Joined the Board in December 1971 with primary responsibility for the Group’s finances. In July 1976 he was appointed Managing Director and, additionally, became Chairman in July 1980.
Mr S I Freshwater. Aged 68 – Directs the Group’s operations in the USA and also has responsibility for the Group’s UK sales division. He has been a Director of the Company since January 1986.

[russman] 02/8/2019 08:43

I have read the Annual Report
Mr Freshwater could have given more details about closing valuations.
137 Oxford St W1 is a significant investment with large potential.
He was paid 1.25m last year; maybe divs are not a priority for him.
165 subsidiaries; must be a consolidation from hell

[retsius] 25/7/2019 17:57

And the cow jumped over the moon!!!

[russman] 25/7/2019 17:34

Just sell one of their talisman properties.
Pay a bonus circa 5% to all shareholders.
Mr Freshwater could elect to waive his clan's entitlement.

[dandanactionman] 23/7/2019 20:44

All IMHO DYOR(1) Decent set of results(2) Borrowing seems to have risen quite a lot(3) Anybody know what the property (or properties) held for sale are at 70 million(4) As people have said low dividend but we knew this

[bench2] 23/7/2019 20:09

We need some family strife similar to the Cayzer family with Caledonia , and the warring families at Mountview ..... this ultimately results in a big jump in the dividend . Mountview div in 1998 48p , Daejan div in 1998 42p ......... 2019 Mountview div 400p , Daejan 106p . I am happy with the DJAN NAV growth especially with such low gearing , plus most other quoted Propcos diluted shareholders with rights issues in 2009 ........ the issued share capital of Daejan never changes . I agree they are too mean on the divi . But this is still a good low beta lockup which regardless of Bojo , Corbyn et al , and another financial meltdown etc . I am happy to buy and leave for another 20 years , but agree the starting yield is not great .

[konradpuss] 23/7/2019 17:13

Ergo, just take Africa House, let recently to Mishcon De Reya. A prime office investment owned by Daejan - an 8% yield? How about the Strand Palace Hotel, the block they have been assembling in Oxford Street, the new Travelodge in E1. Oh and then there are the residential regulated tenancies in London which are generally low yielding.

Are interest rates at the Ergo bank 5% currently?

[watling17] 23/7/2019 17:11

But the gross rental income is £156m and given the quality of large parts of the portfolio, a yield of 8% is too high. The good thing about Daejan is the excellent reaction they prompt and for that reason alone they are a delight to hold apart from being completely safe

As topvest rightly averred if you don't like the way Benny and co run things then don't buy the shares and if you do not own the shares, why waste your time commenting as the family simply will not care, anymore than they will over this nonsense apropos the composition of the board. This is merely more virtue signalling with those responsible trying to create a problem where there isn't one. In any event the Freshwaters would I imagine point to the increase in the share price from ~1 shilling and tuppence ha'penny 60 years ago plus all those glorious dividends. This will be somewhat better than most of us have achieved...

[apollocreed1] 23/7/2019 15:26

This is a bit like a bond, in that although the return has been very low, I don't think it can fall much more when it's trading at a 52.5% discount to NAV. So would be quite defensive in a market crash.

[skyship] 23/7/2019 13:23

Yet another appalling Statement by the Freshwaters.

Paying themselves more than £2m in salaries and paying minority shareholders a grand total of £3.2m in dividends!

Annual dividend raised 2.9% to place DJAN on the continuing paltry yield of 1.8%.
Dividend covered c7x; and where does the cash go – to accumulate the NAV for the benefit of the Freshwater pension fund – NOT for the benefit of minority shareholders.

DJAN remains the very worst of the family controlled companies abusing minority shareholders. Has earned that accolade consistently for the past 50yrs, yet still people buy the shares thinking there is value here.

The classic VALUE TRAP.

Wake up and GET OUT. You are losing c4.5%pa compound holding this disgrace of a public company!!!

[bisiboy] 23/7/2019 09:44

div is a bit mean- all about NAV growth though with this one.
but a div of say 1% Nav or 120p would not be unreasonable, increased with inflation or Nav Growth.

[russman] 23/7/2019 09:13

Mr Freshwater could elaborate on these results (for the benefit of minority shareholders).
Don't think the div yield is great either.

[topvest] 14/7/2019 09:10

Everyone to their own view. My thoughts:
-All property executives are paid highly.
-NAV growth has also been good and needs to be factored in.
-DPS growth is about double inflation.

To be fair, with Daejan you know exactly what you are getting. A minority holding in the Freshwater empire. If you don't like the discount, or the Freshwaters, exit the stock.

[retsius] 13/7/2019 18:20

Skyship

:-)

[skyship] 13/7/2019 17:36

??? It is very easy to look at the compound dividend growth, then seriously question your patience with a group of controlling shareholders who pay themselves very generously and pay minority shareholders a pittance...

Over the past 20yrs (easy as ADVFN Financials show the stats):

# DJAN - 42p to 103p, ie growth of 4.6%pa

# HCFT - 6.6p to 46.25p. ie growth of 10.2%pa

# SHB - 2.5p to 16.8p. ie growth of 10.0%pa

That loss of serious compound growth, hits shareholders massively in the pockets, though grows the NAV - which is not for your benefit as there is no way that NAV is going to be delivered to shareholders.

You really have the patience of Job; usually to be commended - but not in this case.

[topvest] 13/7/2019 17:07

I disagree. They have treated minority shareholders well, if you look at the compound dividend growth. I’m happy to hold. This is an unusual company, but if you purchased on a wide discount, you have and will continue to do well. Of course, if it ever goes private their will likely to be a sharp reduction in the discount and a one-off gain.

[skyship] 13/7/2019 07:31

"No point being listed if the BoD do not respect the goals of minority shareholders."

They haven't for the past 50yrs of watching this company; so unlikely to do so anytime soon!

[russman] 13/7/2019 06:37

The Freshwater clan own 80%.
Doubt a buyback would have any material effect on liquidity.
No point being listed if the BoD do not respect the goals of minority shareholders.

[retsius] 12/7/2019 16:26

Ffs. Up £2.00

Very happy but will it last?

Anyone any news?


R.

[retsius] 12/7/2019 15:48

can this price last to 4.30?

With Djan you never can tell!

R.


Results probably next week.