Share Name Share Symbol Market Type Share ISIN Share Description
Empiric Student Property LSE:ESP London Ordinary Share GB00BLWDVR75 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.40p -0.45% 87.90p 87.70p 87.80p 88.70p 87.60p 88.70p 775,774 15:55:37
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 21.6 28.1 7.3 12.1 529.94

Empiric Student Property Share Discussion Threads

Showing 3776 to 3800 of 3800 messages
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DateSubjectAuthorDiscuss
03/1/2018
21:25
Given feudal long-leasehold [more than 20 years] tenure were abolished in Scotland on 2000 and 2014 leaving only freehold and short lease tenure the use of the word feuhold demonstrates alack of engagement by ESP and the Nomad/Financial PR body with the need to accurately infom the market.
bscuit
03/1/2018
20:34
'Bearbull' in IC often has interesting things to say. On ESP last week: So the odd things are not just that chief executive Paul Hadaway was sacked but, first, that his dismissal took a further three weeks to materialise and, second, that his temporary replacement, Tim Atlee, Empiric’s investment officer, is a business clone of Mr Hadaway; they are long-standing business partners who founded the property company from which Empiric emerged. One wonders, why should one be sacked and not the other?
jonwig
22/12/2017
09:03
SteMiS I totally agree. Any buyout rumours will just be a short term bump and in any case a buyer will want a significant discount to NAV. Last thing holders here need is a firesale. Far better to sort out the business and get it firing on all cylinders. The business is not a complicated one and there are plenty of other companies executing well in it. They just need to copy them and steady the ship.
loglorry1
22/12/2017
08:55
I think (and hope) ESP are doing what they should be; sticking to the plan and sorting out the cost base and deploying their capital. If they do that successfully the share price will look after itself...
stemis
22/12/2017
07:50
Nice balanced view on ESP chucko1. Agree that there's no reason why this company cannot be turned around and made to work. In my view the hard works been done with the property bought and the rooms filled. Now its just the case of getting the costs under control and running the company.
killing_time
22/12/2017
07:44
Yes - unclear where ESP add value here, but not enough detail to know. Feels a bit same-old.
spectoacc
22/12/2017
07:34
The fact that the Uni will operate the building until 2020 probably suggests it will be full, and any unforseen costs will fall on them rather than the feuholder (a new word for me!) - but it would have been good to be told the initial yield.
jonwig
22/12/2017
07:31
"ESP, the owner and operator of premium student accommodation across the UK, is pleased to announce that the Group has acquired the feuhold (the Scottish equivalent to a freehold) of a 64 unit student accommodation property in Edinburgh for GBP7.15 million (excluding costs)." Anyone think the costs are another £7.15m? :) :)
spectoacc
22/12/2017
06:59
Thanks @chucko1.
spectoacc
21/12/2017
21:45
I think that the £600mm represents the value of the company, bearing in mind that it has £820mm of assets and around £220mm of debt. The CFO’s purchase of circa £45k of shares is most interesting, unless one believes that she is incompetent and has got the new plan/forecasts wrong! This would be a notable feat given what she had taken over. But then the former CEO bought in at 106p just after the EPRA dividend revelation, so perhaps they have all been afflicted somehow. Actually, I don’t think so. On the earnings call, the former CEO was genuinely positive and backed that up with the 60,000 share purchase. My take on this is that he felt, and still feels that ESP is on a good path. I suspect that he is looking at it through the prism of property development and that he has created significant value. He failed to see it through a more comprehensive prism, that being one of sustainable and transparent cash flows. The dividend coverage misstatement turned out to be unsurvivable, ultimately, but it ought not to have been. This is a young enterprise where value has been lost through inefficiencies - you think this is the only one!!?? I suspect that opposite to this is the value creation via successful property development. You should look at the financial statements for both DIGS and Unite. Early years defined by poor dividend coverage, but overall shareholder value enhanced by increased property values. In the case of Unite, the shareholder returns average 12% per annum over 18 years, although in 1999, rates were much higher than today, so there has been a relative tailwind. But DIGS is also a young company with good returns so far, so it is unlikely, in my opinion, that the general business model cannot be made to work. It’s students filling rooms - it’s not advanced Kepler planetary motion. Contrary to the bullish tone of the above, however, is the inescapable concern about the positive June trading statement followed by the July issue at 109p. This is the part that I deem unsurvivable given what must have been known, or ought to have been known at that time. After all, the former CFO did not leave for no good reason. But I think this is more a statement of the former CEO rather than the long term prospects of the company should it continue in its present form.
chucko1
21/12/2017
20:14
I know iv had a few drinks tonight but you cant have a sell value of £600m = 99p and a NAV of £820m =109p If the NAV was £820m then the share price would be around 136p roughly. Secondly the only NAV I can find is around the 104p mark so im not sure how this article with property week is coming up with £820m. Really hope im wrong but I don't think iv had that much. KT.
killing_time
21/12/2017
16:30
No sure it is a no brainer. That NAV will not hold if it works out that the forecast levels of rents are not attainable. Words have been spoken about cost control - but evidence needs to be seen in the financials to confirm. Until then, this is still a broken business model. It could be there was no interest in the assets at 99p - in that case what is the true NAV? Personally I have sold into this rally for the time being (thanks Sanata). I will only buy back at around 80p or when the management prove they are making it work. And don't forget that divi is uncovered. Good luck all.
belgraviaboy
21/12/2017
16:22
No Brainer "Hold" NAV (£820 mill) = 109p a share Sell (£600 mill) = 99p a share Hold for 5p / 6% income even at this level and let them sort the issues out ! Merry Xmas everyone
hannath
21/12/2017
16:05
As FD she'll have as good a view as anyone if the numbers are moving their way... I'd have thought Brenda Dean's days were numbered surely?
stemis
21/12/2017
15:52
Still, very reasonable encouragement. Stabilisation and success with the business plan would deliver more than a take-out at 100p, I guess.
jonwig
21/12/2017
15:32
Blast - so no sale process then.
spectoacc
21/12/2017
15:21
CFO Lynne Fennah buys 55,400 @ 89.5p = £49,583 Director/PDMR Shareholding - HTTPS://www.investegate.co.uk/empiric-student-prop--esp-/rns/director-pdmr-shareholding/201712211449321232A/
speedsgh
21/12/2017
14:44
Perhaps a slow burner..
spectoacc
18/12/2017
09:40
Given the current 86p price it does not look like anyone is buying the prospects of the 99p take out story
belgraviaboy
16/12/2017
09:22
Any chance of a merger with digs or a take over by utg. That would remove this useless board andmanagement and reduce the cost, benefit from synergy and give the existing shareholder an exit if they so wish.
riskvsreward
16/12/2017
07:50
@ arichardwilson - the 23 Nov RNS was styled "business review". The fact that Tim Attlee is described as "acting CEO" suggests they have given themselves some flexibility as to their next step. The key person is, of course, the Chairman. She should come to a decision about the conflicting interests here which include the aggrieved large shareholders (they hold a big chunk), the existing executives and potential buyers. Selling the whole company for 100p might not get shareholder approval if a new CEO from outside could convince them that the prospects are viable. However, nothing has been said about the "search for a new CEO", which I found a bit unusual. Current LTV is 36%, and their ceiling is 40%. This is actually quite comfortable if their debt covenants specify 40% (it would be higher in practice), as it would take a 10% fall in their property values to break that. Even so, I imagine the sale of some properties is part of the strategy.
jonwig
15/12/2017
16:42
I have had confirmation from somebody in the student digs sector that the Property Week article is correct. The board of ESP have finally realised they do not have the management to run this portfolio so would be better off selling to someone who can do a better job. Strange that the directors have said nothing to shareholders about a strategic review or considering options when the property market is aware of their plans.Some big shareholders are apparently incandescent at being misled in the July share placing.
arichardwilson
15/12/2017
16:28
DIGS certainly seems the best comparison; could argue ESP has done more on the development side?
spectoacc
15/12/2017
16:08
Interesting discussion. I too sold out some time back and anticipated re-entering at some point. However, I have since done more analysis across the REIT sector and what stands out is the breathtakingly high costs at ESP. Part of this is the high property operating expenses that come with running these student properties. While the yields on student rooms might look good these are not really comparable with industrial property yields. Commercial tenants might pay many costs themselves or might be charged for extra services. They certainly don't get free utilities and staff to look after you. When ESP say they are looking for a 60% operating margin moving toward 70% over time, this means they are paying 40% in property operating expenses hopefully reducing to 30%. This doesn't include admin costs which were running at over 30% of rents in the latest numbers. Add in finance costs and there isn't really much income left. Compare this with DIGS where operating margins are 79% (21% costs) and admin expenses a little over 20% of rents. This is presumably where ESP would like to be. If they can get there it might not look too bad. But I wonder if they can with a much more diverse portfolio geographically and (to date) more aggressive expansion. So I agree with the suggestion that they might want to look at a more focused portfolio. I won't start comparing these op & admin costs with other REITs as you won't want to be in the student sector at all! And the infrastructure REITs are looking cheaper now Labour have got rid of the premiums for HICL and JLIF.
jombaston
14/12/2017
13:43
Something is not right, it does not make sense, we must be missing some vital information. You don't just sell off the whole company cheap because some buildings are not cost-effective, you sell the ones which are in the wrong location and tighten up cost controls on the others. It shouldn't be that difficult to find a suitable executive to shrink the company a bit down to concentrated groups of profitable buildings. Even if shareholders are likely to make a small return by buying now many will be selling up because the shares have lost their purpose, which was to provide safe steady increasing income over the long term. I sold up in August expecting to buy back at a slightly lower price, but every time I was tempted to buy again I felt there was more bad news to come, and even now more bad news would not surprise me.
clausentum
Chat Pages: 152  151  150  149  148  147  146  145  144  143  142  141  Older
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