Ediston Property Investm... Share Discussion Threads

[marktime1231] 28/9/2021 15:19

Sharing the conviction that really good news is on the way doubled up this afternoon at under 74p which feels like a bargain. The combination of NAV progress and uprated dividend will see this in the 80's early in the New Year if not before.

[spectoacc] 27/9/2021 15:54

Difficult to see it being other than good, with recent retail park trades supporting EPIC's NAV, and the completion at Haddington.

[clausentum] 27/9/2021 15:52

Another month before NAV and update.

[1tx] 15/9/2021 14:19

Interestingly Peel are currently developing an additional site which adjoins the Trafford (Urmston) site UKCP have bought this includes an ALDI.

[marktime1231] 15/9/2021 11:23

Yes skyship I wondered about that when doing my sums, does UKCM pay five rather than quarterly dividends?

While EPIC has locked in low interest rates gearing is exactly what they call it, leverage to improve returns, so an aggressive investment management style in this environment is delivering rewards.

We are not there yet, but when interest rates threaten to rise or low cost loans for future development are less available how does EPIC respond? The reason I put my bet down here is that I expect EPIC will be able to raise rents / yield at least as fast as its interest costs. And / or it can raise funds in other ways?

[skyship] 15/9/2021 09:33

Commercial property is actually a remarkably simple and profitable business in a low interest rate environment.

Fix your borrowings for the medium term at c3%pa, then buy properties in the regions on an 8% yield. Great arbitrage.

IMO the best LTV rate is in the range of 25%-35%. Too low, as with UKCM, means failing to capitalise on the current economic situation. Too high just means a tad more Risk, as per RGL.

[skyship] 15/9/2021 07:16

UKCM actually yields only 3.37% (Divi of 4 x 0.644p).

[marktime1231] 14/9/2021 22:57

In answer to my own question EPIC said they spent £21.85M on Springkerse for an initial income of approx £2.08M (9.54% initial yield) and hope to improve that when fully let.

So yes Trafford Park looks a good deal for UKCM with a gross 7.5% yield, but that means EPIC made an even better deal on Springkerse.

UKCM pays a c. 4.2% dividend, EPIC is 6.5% heading for 7.1%.

UKCM is much bigger and more diverse with lower gearing, but on a 15% discount despite a rebounding NAV. EPIC discount has closed to 12% eg the market thinks its portfolio is lower risk and (we hope) NAV is at a point of inflection to start appreciating again.

EPIC wins.

[spectoacc] 14/9/2021 13:31

100% occupancy - looks a good deal for UKCM.

[marktime1231] 14/9/2021 13:28

Interesting to read that UKCM has bought Trafford Retail park for £33M for approx. £2.5M income ... how does that compare? UKCM is diversified across commercial property sectors but it is encouraging to hear them talk of what they see as strenght in the retail park sub-sector, particulrly ones which include drive-thru aspects:

"UKCM acquires Trafford Retail Park for £33 million

14 September 2021: UK Commercial Property REIT Limited ("UKCM" or the "Company") (FTSE 250, LSE: UKCM), which is managed and advised by Aberdeen Standard Investments* and owns a diversified portfolio of high quality income-producing UK commercial property, announces that it has acquired Trafford Retail Park, near Manchester, from Peel L&P for £33 million.

Constructed in 1999, the c. 12 acre site comprises approximately 143,000 sq ft of retail warehouse accommodation across fourteen units, ranging in size from 2,000 to 35,000 sq ft. The asset is currently 100% let to a range of retail tenants including Dunelm, B&M, TK Maxx and Home Bargains. It also provides a strong food and beverage offering that includes Nando's, Pizza Hut, McDonalds, and the recently completed Five Guys letting.

The park delivers an annual income of c £2.5 million per year, with an average rent of £17.17 psf across all units.

Trafford Retail Park is well located in the heart of TRAFFORDCITY, one of the UK's leading retail and leisure destinations, and benefits from high traffic and footfall, attracting 2.5 visitors per year. The park has an estimated catchment of c. 2.4 million people, with 1.5 million within a 20 minute drive. Its position on junction 10 of the M60 and substantial food and beverage offering means it also provides a quasi-motorway service station function.

Kerri Hunter, Fund Manager at UKCM, commented: "This deal presents us with an opportunity to strengthen our portfolio and enhance income through the acquisition of a well-located retail park with a high quality tenant base and impressive footfall in one of the UK's premier shopping and leisure destinations. While some parts of the retail sector have struggled in recent years, Trafford Retail Park is primarily let to discount focused and convenience led retailers, which have proven resilient and continue to perform well. As a diversified REIT, we benefit from the ability to look for assets across a range of sectors that offer accretive returns, enabling us to deliver value and income to our investors.""

[cwa1] 09/9/2021 08:26

XD again today, pay day 30/9

[alan pt] 03/9/2021 16:02

Thanks hindsight, nice to see the news and sentiment becoming ever more positive on retail parks!

I speculated a few weeks ago that EPIC would still have a decent yield trading at par, so it wasn't crazy to imagine it going to a premium and being able to grow. It's feeling less crazy every week :-)

[marktime1231] 03/9/2021 12:33

Very happy, added a few more at just under 79p.

[hindsight] 03/9/2021 12:26

Presume most already seen this from yesterday

Retail analysis outfit Springboard said the gap from the 2019 footfall level reduced to less than 20% for the first time since the start of the Covid-19 pandemic.

Footfall declined from 2019 by 23.5% in high streets, 24% in shopping centres, and just 2.4% in retail parks, with the popularity of domestic holidays, or 'staycations', as well as so-called 'daycations' in August bolstering footfall, particularly in high streets.

[chucko1] 03/9/2021 12:16

I have left a number of offers the past few days, and they are gradually getting lifted at higher and higher prices.

Absolutely love this REIT!

[spoole5] 03/9/2021 09:19

Could hit 80p today!

[playful] 02/9/2021 22:57

SKY, I reckon you should revise that target upwards given their Scottish management acumen.

[cwa1] 02/9/2021 15:12

2 September 2021



Ediston Property Investment Company plc

(LEI: 213800JRL87EGX9TUI28)

Announcement of Interim Dividend



Declaration of Interim Dividend



The Company declares its interim dividend (property income distribution) payment in respect of the period from 1 to 31 August 2021 of 0.4167 pence per share, as timetabled below:



Ex-Dividend Date:

9 September

Record Date:

10 September

Pay Date:

30 September



This monthly dividend of 0. 4167 pence per share equates to an annualised dividend level of 5 .00 pence per share and is unchanged from the previous dividend declared on 2 August .

[skyship] 02/9/2021 13:54

Unfortunately not me either; though with an 11% allocation I am more than happy that they are now making progress toward my 80p target...

[spectoacc] 02/9/2021 11:25

Maybe it was Cowie.

[gary1966] 02/9/2021 10:27

Own up who is responsible for the 1098000 trade at 76.1. Quite chunky for EPIC I would say.

[flagon] 01/9/2021 08:18

Ditto post above :)

[gary1966] 01/9/2021 07:15

IG have corrected the divi overnight. :-)

[gary1966] 31/8/2021 16:24

Trust me I am the only one that could find one!! :-)