F&c Commercial Property Share Discussion Threads

[jonwig] 25/2/2015 06:58

The market doesn't seem to mind these Aberdeen holdings.
REIT status would only matter if shares were held outside an ISA/SIPP, in which case 20% of the PID would not be reclaimable.

[losos] 24/2/2015 10:18

Salchow / Jonwig have just had another look at these, North Sea oil looks a tad dismall right now, (Shell even removing their Brent platform) still presume (hope) Aberdeen Business Park is not all oil related companies.

Would be nice if the REIT thing could be resolved.

[jonwig] 28/1/2015 08:00

Recent weakness might be just giving back the latest spike, but the 2014 Aberdeen purchase (on top of an existing asset) might have more to do with it.

From what I can see, their Aberdeen business park holding cost about £95m, out of a total portfolio value of £1,035m (ie. 9%). I don't think they have any more holdings there. Lease terms for these appear to be in the region of 15-20 years.

[jonwig] 14/8/2014 07:32

IC has been talking to FCPT managers:



Very bullish on prospects for UK commercial property, expanding out of London.
May issue bonds when debt comes up for renewal next summer.
No conversion to REIT at present, but circumstances may change.

[losos] 13/8/2014 12:48

jonwig - "otherwise, give up 20% of it."

Thanks once again for mentioning this :-)

[jonwig] 11/8/2014 16:57

salchow - thanks for your post.
Your numbers re FCPT's cover are right, I think.

UKCM do have a higher retail exposure but also have a low gearing. I held them for a while but feel now that any market topping out would leave them more exposed ... London is the magnet, for better or worse!

Agreed, the premium is no great worry, but in a severe downturn (will we get another so soon?) it could revert quickly to a discount!

[salchow] 11/8/2014 15:54

The dividend excluding revaluation gains was only covered 56% in year to 31.12.13 compared to 72.5% in the previous year. Reasons were given and it is expected cover will increase this year although I would not think to anywhere like 100%. Obviously, with the London based properties the valuation gains should make up the difference so I am relaxed. UK Commercial Property Trust were in a similar situation and they cut their dividend so that it would be covered by income and this had no long term effect on their share price. However, I think they may have had more retail exposure than FCPT and in my eyes are less attractive.

Personally, I would prefer to invest in property companies that pay a good return based on annual rental income leaving the share price to reflect revaluation gains. Having said that, FCPT appears to have a great portfolio.

With regard to the premium to NAV provided this is not too high it is not a matter that worries me too much. If I were to have the funds to invest in properties directly I would have the stamp duty, legal fees and the research and other costs involved so my spend would immediately be in excess of the value of the properties and so compared with doing it myself I don't think a premium is unwarranted.

[jonwig] 11/8/2014 14:30

Hi Losos - CI base is irrelevant at present, as you get the full divi in any case.

But conversion to REIT means you only get a full PID if in an ISA (or SIPP); otherwise, give up 20% of it.

The 6p divi was uncovered because of large-ish cash balances. In the next FY accounts it should appear as covered - will look out.

BTW, a lot of my stuff sits at a premium to NAV - propcos like this and infrastructure companies. At some point I'm going to need to decide whether to hold and draw the divis or try to trade against market.

[losos] 11/8/2014 12:50

jonwig - Many thanks for post 108 and apologies for long delay in responding. I tend to forget things easily these days ha ha.

Still looks like a possible candidate, maybe for the ISA (Sorry NISA !) if they are based in Channel Islands. Premium seems to have dropped a tad today (10% against 13.7% back in Feb)

Have put it on my 'watch list' so might get in sometime soon.

[jonwig] 06/2/2014 17:27

Losos - not a REIT (Guernsey-based I think). Divi of 6p is currently uncovered, and some prop ITs have cut uncovered divis (eg. UKCM last week).
Unchanged divi for last 7 years? Lots of propcos had to cut in 2009-10 and are just rebuilding.

Chief point here is West London exposure.

Might convert to a REIT, or even do a merger (UKCM was mooted once).

[losos] 06/2/2014 16:38

jonwig - the share price has recently come down but todays premium is still 13.7% according to F&C, that is indeed a bitter pill to swallow.

Also the dividend appears to have been 6p per year since 2006

Does anyone know if they are a REIT and do their payouts have the 20% landlord tax deducted. I couldn't get much sense out of F&C on the phone today !!!!!!

[topvest] 24/4/2013 19:31

Yes, great asset on St. Christopher Sq is central to this companies success.

[jonwig] 24/4/2013 16:53

FY results here largely ignored by BBs, but this is a class act as shown by dividend approx. 100% covered, NAV growth and expectation of maintained 6.0p payout.

"What's not to like?"

This has been one of the better performers in ytd and (if you're willing to swallow the bitter pill of paying over NAV) should continue to deliver.

[northernlass] 17/5/2012 18:56

Safe As Houses!

BIAS TO PROPERTY IS SAFE AS HOUSES

Strong performances in property have prompted investors to consider the asset class, particularly the commercial and residential British markets, which are well regulated and transparent.

As the crisis in the eurozone looks set to rumble on, the appeal of safe havens has only grown in recent months. With many asset classes already looking expensive, property, once the darling of the investment community, may be due a revival.

Richard Kirby, the director of property funds at F&C and the lead manager of the F&C Commercial Property trust (FCPT), says the sector has seen some strong performance in recent years.

"We had very strong performance last year. The underlying properties delivered a top decile return, which has continued our top quartile performance over both three and five years," he says.

Over five years the FCPT has lost 3.40% against an IT Property sector average fall of 35.48%. Moreover, the trust has returned more than 70% over the past three years, versus 51.28% from the sector.

Kirby says the driving factor behind the recent success has been the trust's focus on prime British property. "We've seen rents and capital values under pressure. Under these conditions prime is holding up better than secondary, and London and the South East is doing better than the rest of the country," he says.

"We have a significant weighting to central London and much lower exposure to the regions. Within that we have no exposure to shopping centres."

One of the most interesting developments of recent years that has allowed central London to shrug off the sector's woes elsewhere is that buying has been dominated by foreign investors.

Indeed the pricing is such that domestic buyers are finding it progressively difficult to compete with the strength and depth of overseas buyers.

This disconnect helps explain how the trust has distanced itself from its peer group and perhaps suggests a reason for optimism despite ongoing macroeconomic concerns.

Read the complete article here:



P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[enami] 24/1/2011 19:00

I stumbled across the reason for the push up to the current level and the volume spike on 17 December.

Investability Weight Change effective on that date meant that funds were obliged to increase their holdings by nearly double.

The old was 40% to the new is 75%

www.ftse.com/tech_notices/2010/Q4/FTSE_UK_Review.xls

(Bottom of spreadsheet)

[skyship] 18/12/2010 10:24

Read this totally wrong this year. Haven't held all year as I never expected them to hold up at underlying NAV, irrespective of the income. Now the absurd premium provides a splendid opportunity for PIs to clock out at a good profit.

Congratulations to all holders, but surely right to exit now, especially if you can get a result North of 100p.

To maintain your income level, perhaps buy MCKS which has been a lamentabale failure in 2010, but now yields 7% on a much reduced divi; and trades at a NAV discount of 28% and an EPRA NAV discount of 47%. A 100k buy @ 116p on Friday suggests I know not what, but MCKS could well be favourite to be the next REIT to attract an offer - the last (and first) being Rugby which succumbed to IRET earlier this year.

[enami] 17/12/2010 09:36

Yes I realise tom. I see there is a boardroom battle for control about to start over at F&C Asset Management, I assume this strong push upwards has something to do with that.

[tom.muir] 16/12/2010 13:53

The XD doesn't mean much as they pay the divi monthly so it goes XD at some time every month.

[enami] 16/12/2010 13:46

32 month high, can't figure out why as it was XD yesterday.

[enami] 20/9/2010 16:45

2 days in a row with a big closing auction rise - 3.25p today.

[enami] 17/9/2010 17:14

WOW nailed on 4.25p in the closing auction to finish at the highest since May 2008. Very high volume. 7p ahead for the day 7.73%.

Director buying today.

[topvest] 10/8/2010 08:30

What does this mean for FCPT now?

[topvest] 09/8/2010 16:42

Blimey - that was very close!

[enami] 09/8/2010 16:29

News does not appear to coming up in the header field.

tradin restored 16:00

Text of RNS

Attention: RNS
Date: 9 August 2010
From: F&C Asset Management plc

STATEMENT RE: F&C COMMERCIAL PROPERTY TRUST LIMITED ("FCPT")

We note today's announcement by the Board of FCPT ("the Company") that at an
Extraordinary General Meeting in Guernsey to approve the proposed merger of FCPT
with UK Commercial Property Trust Limited, the majority of independent
shareholders voted against Resolution 1 and therefore the merger, which was due
to be implemented tomorrow, will not take effect.

The Board of FCPT has stated that with its advisers it will now consider the
future of the Company and will consult with its key shareholders. Further to
this announcement we will continue to engage with the Board of FCPT on the
future management arrangements for the Company's portfolio.

[enami] 09/8/2010 14:09

EGM RESOLUTION FAILED TO PASS


| For: Against: |
| 122,243,779 122,581,298 |
| shares shares |
| (49.93%) (50.07%)


EDIT

The UKCM resolution passed OK but the FCPT resolution did not.