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Share Name Share Symbol Market Type Share ISIN Share Description
Empiric Student Property Plc 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
  -0.40 -0.62% 64.10 63.30 63.70 67.70 62.50 67.70 951,645 16:35:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 70.9 54.8 9.1 7.1 386

Empiric Student Property Share Discussion Threads

Showing 3726 to 3749 of 4175 messages
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DateSubjectAuthorDiscuss
14/12/2017
12:11
Who says they can't rent them?
stemis
14/12/2017
11:51
Not seen the reason for selling surely renting students rooms cannot be so difficult that even this shower could achieve a profitable outcome. What are they not telling us is there anything wrong with the assets why are they not able to rent them and make a profit remove this management team and put another capable team.
wskill
14/12/2017
11:28
I'd much rather they completed the roll out of their development pipeline and then see where we are...
stemis
14/12/2017
08:56
Touting a low ball initial price should encourage an auction. Final settlement somewhat nearer to NAV".
scallywagkid
14/12/2017
08:40
Great find. Although a 600m sale for the 820m portfolio would be a discount of around 27%, ie some way lower than the current discount,which doesn't quite make sense.
riverman77
14/12/2017
08:11
Very interesting, thanks - I'd actually be disappointed with that, despite being a bearish holder. Average buy price is lower but there's a long-term dividend stream there if they can sort themselves out (my bearishness is based on them having failed to sort themselves so far).
spectoacc
14/12/2017
07:58
interesting ! ...lets see how it reacts today
hannath
14/12/2017
07:27
"Empiric Student Property is considering putting itself up for sale for around £600m, Property Week can reveal." Https://www.propertyweek.com/news/empiric-hoists-600m-for-sale-sign-after-ousting-ceo/5094011.article That would be 99.5p a share. Recent buyers would be happy enough, but not those who subscribed in the last fundraising.
jonwig
13/12/2017
18:32
Exactly, if like me you attended Uni. about 20 years ago, then the rent for a on campus room was about £125 a month all included, now you have to pay over £600 to £800. So that is both growth in income/rent and capital value in the long term. Currently if they don't overpay and be cautious with development cost, they can buy property with initial yield in the 5 to 8% and if they take on debt, it will be costing around 3 to 4% so how cannot they make money?
riskvsreward
13/12/2017
09:17
It is now sufficiently hated for me to be interested. Positive steps include the divi cut and management changes. This is not rocket science. Fill the rooms, cut costs - don't be greedy. The rest will follow. Small long position taken.
belgraviaboy
13/12/2017
07:18
@riskvs - or unless they overpaid in the first place. Thanks @Jonwig, Numis target says it all. Just them & me!
spectoacc
13/12/2017
06:48
Cannot see how the investment executive officer can survive in the long term with poor investment decisions like the Cardiff and Aberdeen investments, unless he has disagreed with those investments but overruled by the fired ceo. a 5 to 6% yield is achievable if they make wise investments and control the costs. Afterall even private individual buy-to-let investors can be profitable so cannot see why a reit like esp cannot make a roe in the region of 10% per year unless the management is too poor, especially in today's low interest rate age.
riskvsreward
13/12/2017
06:34
Not much press coverage, but it would be nice if this sort of thing catches on: It floated at 100p per share in June 2014 and edged up slightly today to 83.28p. One property expert said the discount would make Empiric look “very attractive to suitors at the moment”. Https://www.standard.co.uk/business/bidders-study-freshers-digs-specialist-empiric-as-boss-is-ousted-a3717296.html Numis seems to have dropped its target price from 94p to 91p yesterday.
jonwig
12/12/2017
15:05
If Attlee went too I'd agree, but sounds like if there is a successor as CEO, he'll be choosing him!
spectoacc
12/12/2017
14:44
@Jombasto, @Spec. Thanks for the comments about "affordable" dividend. Since they need to remain a REIT (surely?) they must pay out 90% of nri as a pid. They seem capable of paying ~4.0 to 4.5p which includes costs (look at the last half year's divi breakdown: Dividends declared in respect of the period totalled 3.05 pence per share. Of this, 2.098 pence has been paid as a Property Income Distribution under the UK Real Estate Investment Trust rules). And, as Stemis says, they have properties coming on stream where developemnt costs have already been booked. I do think that pruning under-performing assets (Cardiff, Aberdeen) would be a good idea, even at risk to asset value. I'm not suddenly getting enthusiastic about this just because I bought a pretty trivial amount, but I do think this is a play on management, and one blockage has been removed.
jonwig
12/12/2017
13:55
@Jombaston - a point @Jonwig made at the time of the announcement, that they shouldn't be targetting 5.5p then 5p annual dividend - they should be targetting what can be afforded, and then look to grow it from there. No one has commented on my post above but I'd say the share price agrees with me. I remain a holder, underwater, but today's announcement was poor. No one's mentioned Cardiff or Aberdeen either - isn't as if there weren't trading issues too. Merry Christmas :)
spectoacc
12/12/2017
13:48
I've put this back on the watchlist after today's announcement. This has prompted me to go through the latest results (6mths to Sep) and the problem is quite clear when you look through the accounts and particularly the cost ratios. I calculate the 'true yield' of this REIT (using the 6 months data annualised) as 0.5%! Virtually all the rent collected was being spent in operating, admin and finance costs. Of course, you can also see this in the unadj EPRA earnings and cash flow numbers. Subsequent statements acknowledge the need to improve operating margins and reduce admin costs. Looking at the numbers I would say they need to reduce them by at least a third if not more. The targets on admin costs target this sort of saving. For operating expenses they have a target of reducing them by a quarter over time (from 40% to 30% or expressed as an operating margin from 60% to 70% margin). But this will take time - if they can manage 65% next financial year it would be a good start. However, they are not at the point where a divi of 5% of NAV or even 5p in the pound is sustainable. My point is if they want to position this as a REIT that pays a sustainable (and possibly growing) dividend they need to do something more radical than has been proposed. Clearly there is good asset backing but are some of the assets more profitable than others? Do some cost more to run? Should they be expanding so rapidly? How about selling some assets and focusing on the most profitable and cutting the div to 4p? After all, it would still be a decent yield at the current share price. Or maybe they could sustain the current divi by selling some properties and making clear that this represented part of the distribution until the divi could be properly covered. It is tempting to buy a few shares but I think it is still speculative so will wait for some pointers from the new management first.
jombaston
12/12/2017
13:07
Also established a small position here. You'd hope that as turnarounds go this should be relatively straightforward and largely a matter of reining in costs. There don't appear to be any issues with the buildings, which in any case are independently valued. Also a lot of the upfront acquisition and development costs should naturally start to fall, while rising occupancy should boost earnings going forward.
riverman77
12/12/2017
11:14
Picked a few of these up this morning. With a near 20% discount to NAV and a div of 6.67% im crossing my fingers that things can only get better, and we start to see a turn around. KT.
killing_time
12/12/2017
10:08
Against my own judgement to some extent, since it is clear investors were taken of a ride in the last fundraise, I've topped up a bit here. If 5p is sustainable and given the discount to NAV I think current prices are a decent enough entry point.
loglorry1
12/12/2017
09:06
The board clearly want to send a strong message to the market; it's more than the usual 'left by mutual consent'. I'm guessing some of the institutional shareholders have given a strong message that they have lost faith in the CEO, especially those who stumped up for the last fund raising. It seems the strong commitment to recovering margin and overhead reduction in the Business Review wasn't enough to placate them. At least something is happening. There's a pretty strong commitment here that things are not good enough! Tim Attlee has been appointed acting CEO. Unless you expect them to plod on without a CEO I'm not sure what else people expected them to do? Paul Hadaway hasn't yet left the company (although may be on garden leave). The announcement is clear that he has been given notice and stepped down as a director.
stemis
12/12/2017
09:02
Nice timing JW . If my experience is anything to go by overheads will fall quite quickly. Sell the Bentley, sack the chauffeur, cancel the in-house magazine etc and then watch as morale climbs.
daveofdevon
12/12/2017
08:46
Well, I did my bit for the share price: 4,000 @ 83.373 though it shows as a 'sell'. DAVE - I think I agree. Perhaps he was the alpha chimp, and they're looking to recruit a CEO from outside.
jonwig
12/12/2017
08:33
I used to make my living sorting out problems like this. In almost every case the remaining executives were a meek bunch who just got on with their work and kept clear of the problem, most of them had no aspirations to take the lead.
daveofdevon
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