Dukemount Capital Share Discussion Threads

[arthurdaley69] 10/8/2017 11:22

Dudley, sorry to question you, but have you read what they are doing?

They are not a traditional property play, but are looking to get guaranteed (and index linked)income from Housing Associations, and at the same time as purchasing the property, create a sale-and-leaseback with institutions.

I wholeheartedly agree that UK property is susceptible to a correction, but they are trying to create a portfolio by locking in the differential between the income from the Local Authority and the end user, a financial institution.

For example, they buy a property for £5m, that guarantees say 6% income from a HA, then grant a long lease to an institution paying them 5% per annum.

The reason to do this, is the packages are too small for most funds, and DKE get to keep a small percentage and de-risk.

Again, if you know different, please let me know!

[someuwin] 09/8/2017 09:47

Currently No. 4 on the top risers list.

[dudleym1975] 08/8/2017 14:43

This is a ramped dog by the usual suspects A company investing in property where property crash is looming

[someuwin] 08/8/2017 10:05

Needed a thread with charts.

[someuwin] 08/8/2017 10:02

!FOLLOWFEED

[baggytrousers] 07/8/2017 12:50

Useful interview was posted on Share Talk back in April. If you look at their 'intended' value of acquisitions (up to £100M) versus Mcap... you can get why some people are a little bit excited about this one...

hxxp://www.share-talk.com/share-news/geoffrey-dart-chairman-of-dukemount-capital-plc-londke-interview/

[dudleym1975] 07/8/2017 08:03

This company buys properties and wants to rent themWouldn't invest here if this was the last company on Aim.

[arthurdaley69] 06/6/2017 16:39

Be interested to hear views on this company that appears to have floated under the radar of many.
The shares are trading at below the issue price of 0.5p, and if they manage to execute their model, they will be a really rare thing in AIM-world; one that has a reliable income, backed by local authority 20 year plus rentals, the benefit of any upside in NAV, and are looking to pay a decent (and growing) dividend.
Perhaps the time to pull the trigger will be once they have back-to-backed their first deal to see if the model is deliverable, but imvho, this maybe one to watch...alternatively I am sure you can find some miner in the third world without a license and not even a hole in the ground to pour money into!

[arthurdaley69] 06/6/2017 16:34

The Company intends to develop and manage a portfolio of properties that are sold to some
of the World's largest Institutions on a sale and leaseback basis with long-term operational
tenants such as Housing Associations in the supported living sector. The rent will be CPI
linked where possible to ensure the Institutions receive sustainable yields over the life of the
property, which can be up to 50 years.
The transactions the Company will complete are expected to be 'back-to-back' transactions
where the Company will acquire a freehold and simultaneously grant long-term head-lease
with leaseback to Institutions. Such financial arrangement would be immediately profitable
due to the differential between the rent paid to the Company and the rent payable by the
Company to the Institution under the terms of the leaseback.
The properties will create long-term inflation linked cashflows backed by freehold real estate.
Such assets are in high demand by Institutions due to the stable, recurring and long-term
nature of income.
A 2016 report from Schroders noted that the UK private sector pension liabilities are
currently valued at over £2 trillion on a buy-out basis, which suggests the potential demand
for long-dated index-linked income could be of the magnitude of £1.6 trillion.
The company's directors are the largest shareholders, and they intend to pay a dividend as soon as possible from operations targeting north of 5%.