Ediston Property Investm... Share Discussion Threads

[chucko1] 23/12/2021 13:54

Seemingly, I have doubled my target.

[chucko1] 23/12/2021 13:53

Only one sale above 84p, but I am angling for more!

[chucko1] 23/12/2021 13:53

Only one sale above 84p, but I am angling for more!

[marktime1231] 23/12/2021 13:24

Terrific share price surge I think this was a press tip grabbing attention before Christmas.

Through my target price a couple of months before I was ready to trim a few, so what to do?

I think Poole Retail Park was bought by M7/Oxford Properties who I think have been finding deals for EPIC, but the site has already had its potential developed and at £58+M this is not necessarily a bargain or in EPICs capex budget, so possibly something for a bigger property fund with lower dividends.

[alan pt] 23/12/2021 12:07

...and my 84p limit just triggered, really didn't expect that to happen!

Gets me back down to my 10% limit, that'll do nicely for now

[hindsight] 23/12/2021 11:17

Sold some at 83.8, they keen as has been said

[tournesol] 23/12/2021 11:11

Spitting Barrelsee post 931

[alan pt] 23/12/2021 11:03

Good increase, yet there still seems to be value there. If it went to par then (with the prospective 5.5p) it would still yield over 6%

Not sure what the heck NRR are doing, their latest master plan was to sell down shopping centres and increase retail parks!

[killing_time] 23/12/2021 10:34

See post 931

[spittingbarrel] 23/12/2021 09:51

Surprisingly strong move in EPIC today, anyone got any clues as to why? I've sold a few into it but the mm's seem hungry for stock.

[skyship] 23/12/2021 09:09

Top-sliced 20% as went way through my 10% MAX rule earlier this month, yet alone today!

Boystown. Bought into some UKCM yesterday (now 74.6p-75.0p) as they made an acquisition, raising their LTV. As I posted yesterday, they finally seem to have twigged that borrowing at ultra-low rates just might be a good idea when they can rent out at 2-3x the borrowing cost. It is by-and-large an institutional stock; but I think they will be seeing 80p again shortly as the discount now 21% versus their usual level of half that.

[boystown] 23/12/2021 09:01

I'm still holding as I invest for yield, so once bought, I usually (though by no means always...) hold indefinitely. But hasn't the main basic value been outed here now - with better value elsewhere - Skyship????

[flyer61] 23/12/2021 08:46

Yes sell prices very nice but I doubt anybody is selling...just yet.

On the small cap value picks for 2022 take a look at IOG. I have a feeling it is going to get a fair bit of newspaper coverage.

[spectoacc] 23/12/2021 08:38

Only 7% premium to last BV tho - but still good, and hope EPIC weren't the buyer :)

Not sure a tip in a thin market very ethical, but been getting near-offer sell prices - highest so far 83p.

[spectoacc] 23/12/2021 08:12

Thanks @tournesoi - epic :)

On a similar note, wonder what Ramper Tommo's smallcap value tips will be this year.

[skyship] 23/12/2021 07:38

At 80p the prospective yield on the anticipated 5.5p = 6.88%

[tournesol] 23/12/2021 02:02

In today's (Thursday's) Telegraph - Questor is devoted to Ediston and is extremely positive.

Sell this trust, we said in 2019. Now 23pc cheaper, it's worth owning again.

….we feel able to return to a positive stance now…Ediston's portfolio is particularly well positioned….its decision to concentrate on retail parks looks wise….At the current share price of 80p the yield is 6.3%….that kind of yield is too high from a business that is increasing its dividend….any move to a more realistic figure entails….a rise in the share price….

Hopefully that should help us have a good day today.

Incidentally HL's website reports the yield as 5.63% - not got the motivation to check calculations and see who is correct…..

[chucko1] 20/12/2021 13:49

With 1.19x cover pre-sale, mention of using reserves to even cash flow makes little sense were they not looking to move forward with some increase in the near term.

[marktime1231] 20/12/2021 13:21

I saw that too this morning Alan a strong confirmation of EPICs conviction to go with retail parks. The downside presumably is that it will increase competition while it looks to invest about £42M in new properties from the sale of offices and reserves.

The Chair is very clear that they would like to expand the asset base to improve scale, and would like to tap the market with discretion for up to 10% issue but they need to close the discount in order to do so. They have fixed borrowing arrangements averaging only 2.9%, but are already geared over 35% so debt is not an option. A surprise nothing in the headline discussion about interest rates and the extent to which rent is indexed.

The commentary on dividends was if anything less scrutable than before, last time it was interpeted that a rise back to 5.5p pa was almost certain and imminent. They rightly point out that income has been interupted until it reinvests the proceeds, and that the net transaction process and taxes may mean a dent to NAV. On the up side dividend is (was) well covered by income, and they say they might use reserves to ... what, sustain the current payment level or increase it in anticipation?

My conclusion is that the decision will be easier and quicker if they get on with the job of reinvestment, and only then will they commit to using reserves to bridge the interuption of income. I hope that they have properties in mind, but didn't say so.

5.5p hopefully within 6 months rather than early in the New Year. Good investments and step up in dividend covered by income run rate will help close the discount and we might get a tap in the second half of 2022.

[nickrl] 20/12/2021 12:50

There are many references that suggest to me the divi won't move up as fast as we would like with the office sales yet to reinvested being the main driver. Also whilst Haddington is open sounds like they gave away the first year more or less rent free so won't see the benefit of that at the cash level til next year. Plenty of positive leasing news though. So current dividend is covered at the cash level they have also reversed 0.6m of write offs so that will be a bonus if they receive the cash.

The board have frozen remuneration for fifth year.

In summary though until they acquire some replacement assets we won't get back to the pre covid divi levels but all to play for.

[spectoacc] 20/12/2021 10:07

Should get reflected in the next valuation - tho hopefully not before EPIC have managed to spend the offices cash on a couple more.

[alan pt] 20/12/2021 10:04

Further reinforcement of the retail park advantages on BBC Business this morning:

"UK shoppers chose to avoid High Streets and city centres on the crucial weekend just before Christmas, amid fears over the Omicron Covid-19 variant.

The number of people on High Streets fell by 5.9% on Sunday but rose 4.8% at retail parks week-on-week, retail analysis firm Springboard said.

Springboard's Diane Wehrle, said consumers were "clearly cautious" about venturing out to the shops."

"Ms Wehrle said, in part, this was due to shoppers trying to get a head start in buying groceries, while also preferring the "Covid friendly" nature of retail parks, as they are in the open air, have large stores and can be easily reached by car."

[chucko1] 20/12/2021 09:08

Clearly indicating at least 5.5p, and possibly a return to the previous 5.75p in fairly short order.

[playful] 20/12/2021 07:59

Sounds like a divi increase is coming sooner rather than later...

However the income will fluctuate in the short term as the disposals are made and new investments are acquired. This may impact both dividend cover and the timing when potential increases in dividend can be made. The Board may consider, when the sales are largely completed, to use reserves for short periods, if prudent to do so, to help smooth the cash flow.

[marktime1231] 17/12/2021 16:48

The calendar does say results in December but no date. Next Weds then assuming they want a Christmas break.