Empiric Student Property Share Discussion Threads

[aylingd] 13/11/2015 10:16

Blimey, another RNS, another development. These guys don't hang about do they !

D.

[cheshire man] 12/11/2015 09:51

Indeed DavRos Divi not to be sniffed at here :-)

[davr0s] 11/11/2015 19:53

Yes jl agree - just 1% of the portfolio and I wouldn't go above 3-4% for an individual stock/ company. I am heavily cash at moment having sold into the bull market in the last 18 months - I feel that all this qe and debt will end in tears so want to have lots of buying power. But I need to get some return on my money. I really like this one as its share price has low beta, great divi plus a hedge/return of funds as I have 2 children going/gone through uni and one more next year - and have been at the sharp commercial end of these kinds of companies. They are a licence to print money at the moment...

[jl9] 11/11/2015 15:26

It's difficult - but remember not to be too certain of anything. S P R E A D your risk. Welcome aboard.

[davr0s] 11/11/2015 14:08

Just taken my first position here - plan to hold long term and reinvest income. If it dips back further have more funds set aside to buy more....

[eeza] 10/11/2015 11:43

Thank you jonwig.

Just started my research (have read Wheelies posts/blog).
Had noted the PID point you made.

[jonwig] 10/11/2015 11:30

eeza - I looked at some of these metrics a while back, and came to the conclusion that not much could be deduced ...

some units are single bed, some multi-occupancy rooms. Some properties are acquired at the early development stage (off plan, even, I beleive), some are already operational.

Also, price will depend on location and existing supply in the particular town.

As a REIT, it must distribute at least 90% of its net rental income as a PID, so the question I'd ask is where the non-PID element comes from. It could well be from ancillary services (cleaning, sports facilities, etc.) which aren't classed as part of rents, or be part repayment of capital, meaning the 6% base yield isn't sustainable. The PID element of the latest dividend was under half of the total.

A quick look suggests there were on average about 147m shares in issue between 11 Feb and 30 June, and operating cash flow was £3.73m*. That annualises to 6.8p/sh ocf.
Alternatively, eps for the period was 9.6p. Strip out the non-cash property value uplift and you get 5.5p annualised.

So whichever way you look at it, annual dividends of 6p look OK, and we can index them so long as rents rise in an indexed fashion.

Your presentations and audios are here:



EDIT: need to subtract debt interest - will do.

[jaws6] 10/11/2015 11:24

eeza
please see this and try on Results and Presentations on this web .
I did see some comparison for most property co on prestations of this co on email , but can not see on their web ,I can not post as no link.

hxxp://www.regionalreit.com/portfolio


please try on this blog if any good info


May be BRR media might have it .

[eeza] 10/11/2015 10:52

Interesting post on ii today:-

After seeing the latest £40m purchase in Cardiff (almost half of the latest IPO funds raised) and remembering mr5percent posting "Some properties are reasonable value. Some are most certainly not - £10k pa!" I did a little analysis on recent purchases last night:

cardiff £40m/314 beds = £127.3k per bed
sheffield £10.7m/134 = £79.9k
portsmouth £4.45m/41 = £108.5k
nottingham £18.4m/162 = £113.6k
bath 7.65/78 = 98k
bath 25/169 = 148k
newcastle 7.4/63 = 117k per bed + retail units
falmouth 8.1/132 = 61.3k
glasgow 7.4/70 = 105.7k

Considering the cost of maintenance required to keep these properties 'premium' year after year plus a 6% dividend I am left wondering about things like return on capital employed, rising costs of servicing debt and the fact that ESP does not necessarily aim to buy properties that are likely to rise in value very quickly.

I think rather than chasing up director remuneration, my next research stop will be any equivalent to a 'conference call' where shareholders and analysts get to question management about the business model, cost synergies (mentioned in the latest Cardiff purchase) etc.

If anyone klnows where I might easily find such a thing (transcript or video) please do post it up as I am very pressed for time. Also, more than happy to hear from anyone who knows how these figures compare to similar companies and if i have made any fundamental mistakes in my maths, of course!

[jonwig] 10/11/2015 10:18

TreeShake ... can we keep it that way please?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

A poster on another thread (i i) drew attention to something I don't normally pay much notice of: the AGM votes.

23% of holders voted against director remuneration.
33% volted against appointment of Stephen Alston as director.

I don't see anything especially suspicious of director pay here.
SA (a non-exec) is a partner in REVCM which is essentially the asset manager for ESP. He didn't take a director fee from ESP, but REVCM takes 0.2% of NAV pa, which is plenty! It's an unusually high vote against.

Also: "The Board notes the higher than expected votes against resolution 12 and intends to engage directly with shareholders to understand the reasons behind the vote result."
I hope they will share their findings - it could be important.

[treeshake] 09/11/2015 11:08

This thread is like a ghost town, ESP pulling off some decent deals in very busy locations, first Bath and now Cardiff

[jonwig] 09/11/2015 07:46

Inside an ISA you will have no divi tax to pay, and will receive the full PID.
(But let's see what Geo Osborne has to say on the 25th!)

[saj3] 09/11/2015 07:31

Thanks jonwig With the new divi tax coming in does it affect divi paid inside an ISA?

[jonwig] 09/11/2015 07:18

saj - see post #119.

[saj3] 09/11/2015 06:53

I have been paid the divi but it is paid in 2 lots 0.77p and 0.72p can anyone explain this?

[budsman] 06/11/2015 17:33

I have always had the cost of full subscription debited and if the issue is oversubscribed the balance returned in a few days. I cannot recall there ever being such a delay.

I too had considered a move away from Selftrade at the time of the takeover. The promise of moving for free for a year appealed to my laziness!
Apart from the present incident I have been very satisfied with the service.

Bud

[aylingd] 06/11/2015 17:18

budsman, I'm also with Selftrade and they only debited my account for the amount I received not what I applied for. Not sure why they would have done it differently for you.

I was going to switch from Selftrade after Equiniti took over but the initial teething problems seem to have been sorted so quite happy with them now, although the web interface is a bit naff.

D.

[wirralowl] 06/11/2015 16:49

I also have some funds with HL, but stuck with selftrade as they offer the best service when it comes to retail bond (ORB) offerings.

[budsman] 06/11/2015 16:44

Have spoken to Selftrade who say that the account will be credited next Friday!!

The shares were allocated last week and I can't believe that the excess cash was not returned at the same time or very shortly thereafter.

Have some funds with H-L but for risk management have a number of accounts.

Bud

[jl9] 06/11/2015 16:40

alter ego

ditto

[alter ego] 06/11/2015 15:48

ditched selftrade last year, now use HL who are so much better.

[wirralowl] 06/11/2015 15:38

Same her, budsman, also with selftrade.

[budsman] 06/11/2015 14:41

The dividend and the PID were both paid yesterday into the Selftrade account

Still no sign of the excess cash from the scale back of my share application.

Bud

[cheshire man] 06/11/2015 14:39

Plenty of buyer's coming in following that tip :-)