Dev.Secs. Share Discussion Threads

[skyship] 24/2/2015 11:24

The bounce came bang on the trendline, bang on the day:


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[contrarian joe] 24/2/2015 09:53

:


Dev Sec to pay special dividend

24 February 2015 | 08:07am
StockMarketWire.com - Development Securities says it is on track to hit management expectations for the full year and that a special dividend of £10.0m (8.0p per share) will be paid in addition to the final year dividend.

The company also announced that Michael Marx is to stand down as chief executive at the annual general meeting on 14 July.

He will be succeeded by Matthew Weiner who has served as a main board director for 10 years. Richard Upton, formerly chief executive of Cathedral and a main board director of Development Securities, will be appointed as deputy CEO with Marcus Shepherd continuing as finance director.

Masrx will remain on the board as a non-executive director until 29 February 2016.

The group said: "Our performance has been strong in the period, with significant gains generated from our diverse activities in regeneration, development and trading and we are on track to deliver management's expectations for the full year.

"Alongside the disposals previously announced at 399 Edgware Road, North West London and the Telegraph Works, Greenwich, which together have released £35.0 million of cash and could in the near-term realise up to £20.0 million of profit, today we also announce progress at Cross Quarter, Abbey Wood, our mixed-use regeneration project next to the Crossrail terminus in South East London. We have now disposed of the first phase of the residential element of this scheme at capital values significantly ahead of our appraisal values, with construction of these unitsdue to complete in August this year."

At 8:07am: [LON:DSC] Development Securities PLC share price was +5.5p at 243p


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[speedsgh] 24/2/2015 08:57

Think I am what can be described as a happy holder this morning :o)

With an average significantly below the current share price, the full yr dividend along with the special will represent a very handsome return on cost. Nice to be rewarded with some decent income while watching the NAV steadily climb.

Expect to stick with DSC for some time yet. They're in a bit of a sweet spot in the cycle in their industry at the mo.

[skyship] 24/2/2015 08:08

An excellent statement; and that Special 8p dividend sounds as though it will be a recurring feature which effectively takes the yield up to 5.7% @ 240p. Quite right too!

Looks as though that 260p level is an odds-on play by the time of the Prelims.

[scburbs] 24/2/2015 07:47

Solid trading update, looks like they are moving to the old style pre-closing trading update in place of IMS. Gains in line with expectations for this year and potential for upgrade to future years gains with Abbey Wood sales values significantly ahead and increasing greater London & South East residential pipeline.

Special dividend of 8p and potential for future special dividends.

MM standing down.

[contrarian joe] 06/2/2015 20:27

What Investment interviewed six experts on where to invest in 2015, out of eleven asset classes uk commercial property was the favoured asset class.

[scburbs] 02/2/2015 15:35

Looks like DSC no longer intend to issue an IMS, although to be fair they do RNS most material events as they happen anyway so IMS normally just a summary of announcements previously made.

[skyship] 29/1/2015 10:44

FOZZIE - nothing too dramatic; but would expect to see the complete retracement of the fall from the 262p double top last year - so 262p by the 1st May - the date of course coinciding with the Prelims. In the meantime will continue to trade opportunistically with my recent purchase...or will attempt to do so!


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[fozzie] 29/1/2015 07:56

I agree Sky another good deal for Dsc. You would seem to have been in and out here over the last year, having recently got in again what are you looking for in terms of a share price target?

[skyship] 29/1/2015 07:50

"Development Securities today announces that it has acquired the non-foodstore element of The Killingworth Centre, a convenience retail shopping centre near Newcastle from Wm Morrison Supermarkets plc for GBP19.2 million at an 8.27% net initial yield."

With yields like that, surely the secondary Market is still offering remarkable value in a low interest environment.

Another good deal for DSc...

[skyship] 28/1/2015 17:18

Yes, DSC has been a lucky stock for me. In the same sector, now just wish LXB would buck up its ideas - continues to make really heavy weather of trying to break back above 140p!

[stupidboypike] 28/1/2015 17:02

Nice timing SKY. I've been waiting for ages!!! Back into paper profit now though but I think these have a long way to go up yet.

Best regards SBP

[skyship] 28/1/2015 16:54

An interesting day for DSC - quite a rise - c244p bid at one stage. Volume still slight however...

[skyship] 23/1/2015 12:17

Back in with 10k @ 229p. Had been waiting patiently for somewhere more like 225p...but didn't seem to be coming!

[scburbs] 22/1/2015 14:35

"We are thrilled to announce the arrival of three new businesses to The Old Vinyl Factory in Hayes today. Joining existing occupiers in The Shipping Building on 10 year leases will be: leading consumer electronics brand SONOS; internet service provider Host Europe Group (HEG); and IT solutions company CHAMP Cargosystems. The grade A, landmark art deco office block is just one of several Wallis, Gilbert and Partners designed buildings on our £250m 17-acre scheme. Elsewhere on site, plans are also being advanced for the redevelopment of the 100,000 sq ft Record Store building, which will become the home of the innovative Central Research Laboratory.

The Shipping Building is now 85 % let, with 19,400 sq ft of space remaining at a quoting rent of £20.00 per sq ft."

hxxp://www.cathedralgroup.com/homepage-blog/the-old-vinyl-factory-welcomes-new-occupiers/#more-5633

[skyship] 15/1/2015 07:36

Seems like a useful high-yielding investment; though I don't see why they should go to ICG-Longbow for finance (I hold LBOW coincidentally). Must surely be more expensive than conventional bank funding. Why don't they issue a tranche of ZDPs perhaps. They could surely get that away on something like a 4% yield - see CICZ & PCTZ).

Todays Acquisition:


ICG-Longbow:

[contrarian joe] 12/1/2015 22:16

Sky,even more encouraging is when them assets are expected to return £23.47m profit in 2015 eps 17.45,that' over 120% increase in eps giving a peg of 0.1.2016 profit £26.83m, eps 18.85, peg 1.5,p/e 12.2. 2017 profit £36.35m,eps 25.85, peg 0.2, p/e 8.9,that will also give NAV a big boost,if those projections are achieved then that is exceptional value for a property company.

[skyship] 10/1/2015 12:32

What surprised me in that extract I posted was this bit at the end:

"...Development Securities is listed on the FTSE SmallCap Index, and for the financial year to the end of February 2014 it reported profits of £19.5 million on a turnover of 79.3 million."

All very interesting I'm sure; but what matters to propcos is the value of their assets , not their earnings. They should have been making references to NAVs, particularly prospective, built-out NAVs!

[jlo10] 09/1/2015 20:19

Thanks for identifying his interest in DSC
There has been some negative comment on here so it's good to see positive comment from a professional.

[contrarian joe] 09/1/2015 18:06

Jlo10, Was highlighting the guys ability for picking small stocks, seeing that DSC is a small stock,what maybe should of been said was he also runs the Fidelity special values an IT,which is asmall medium size & has also returned substantial returns for shareholders since he took over in 2012.The special situation fund is an iconic £2.7bn fund (x Anthony bolton), which he has just taken over the mantle, can't see what difference a small mkt cap stock DSC would make to funds performance.

[skyship] 08/1/2015 10:33

Jlo - Thanks for that. This is the relevant extract:

"But the sector that excites Wright’s interest most at present is what he calls ‘secondary property’. This means property that is away from the prime locations, such as the middle of the high streets of large cities.

He commented, ‘While property prices in general rose in the aftermath of the financial crisis, secondary property prices started to fall in 2012. Investors worried about the health of the economy didn’t like secondary property, with the lease lengths tending to be shorter and the property tending to be less prime.

'This caused the rental yields to go to 10 or 12 per cent, and even now quite a few of those companies are trading at discounts to their net assets. One such company, Max Property Group, was recently taken over at a large premium to its share price.’

The companies he favours for investing in this sector include Development Securities and CLS Holdings.

Development Securities is listed on the FTSE SmallCap Index, and for the financial year to the end of February 2014 it reported profits of £19.5 million on a turnover of 79.3 million."

[jlo10] 08/1/2015 09:38

hxxp://www.whatinvestment.co.uk/financial-news/shares-and-trading/2472847/alex-wright-the-stocks-iand39ve-added-and-those-iand39ve-sold-for-the-fidelity-special-situations-fund.thtml

Although this is the special situations fund rather than smaller companies fund

[skyship] 08/1/2015 07:31

CJ - I see him holding DCC but not DSC. Is this an as yet undeclared holding do you think? Has he been interviewed somewhere perhaps...

[contrarian joe] 07/1/2015 21:20

Alex wright of Fidelity uk smaller companies who has been top performing manager over the last five years, has made substancial returns for shareholders, has been buying DSC.Id'e imagine he uses a number of criteria before esablishing whether it's good value or not,each stock he identifies will be at one of three stages,DSC he believes is at the early stage one.I wish you all a belated happy new year & save investing for 2015.

[skinny] 07/1/2015 15:03

I still hold some SREI - bought in October 2012 - they have been fairly painless -
I also bought PEW about the same time.