F&c Commercial Property Share Discussion Threads

[skyship] 09/7/2017 19:08

Darren - hate to disagree with a fellow property investor, however to my mind FCPT is a 100% SELL.

# A 5.2% NAV PREMIUM!
# A yield of just 4.1%
# 12.7% of portfolio in Scotland - mostly in damaged Aberdeen
# 33.7% of portfolio in London's West End - better than the City, but London values softening

The stats and the chart (see link below) suggest very little upside; whilst clear downside.

If you are set on having some property exposure (which I agree with) then strategically look for players with portfolios outside the over-valued London. The regions are still cheap - but avoid Scotland.

Two to consider might be:

# Palace Capital (PCA) @ 370p - 14% NAV discount; 5% Yield; great track record - see Investor Presentation



# Ediston (EPIC) @ 111p - One of the new high-yielding investment REITs - 1% NAV premium; 4.95% Yield; investment managers acknowledged as one of the very best in the field

[dobfgeater] 09/7/2017 09:33

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[vacendak] 08/7/2017 21:46

Basically, if you are retired or about to retire and in search of income, the 0.5p per share per month (few trusts pay monthly divis) should be a no brainer. It is now covered 87% by rent income, an increase of 7% according to the latest video update recently posted on the F&C/FCPT website.

Like many I do not like buying at premium, but I have made an exception for this one because I wanted a bit of property exposure. The Brexit bit is now factored in, it was a big shakedown just after the vote for sure. The AR prior to the referendum already mentioned that the trust was entering an income phase and that the wild share price growth based on property value was coming to an end. As the share price graphs now show, FCPT has recovered from the vote, but is not flying as high as it used to.

I came in with a lump sum at around 145p before the referendum, then carried on drip-feeding monthly all the way down.. and all the way back-up. Pound averaging has worked wonders, so I am relatively happy. Still, I would have been better off putting that money in a generic global fund like FRCL or WTAN, even with the dividend included.

Long term, if you want growth, go for Private Equity like everybody. :)
FCPT is good quality, so a tad expensive (premium) but reliable for income. I would also expect it to weather the next market crash better than the rest.

FCPT is pure property, there is no builders, land holding or other trust/funds in it. You can get the list of the buildings owned by the trust, and their address, in the AR and HY reports.

[darrenp746] 08/7/2017 05:33

Tempted to get into this but not sure about premium. Any views on this longer term and effects of brexit?

[vacendak] 24/4/2017 14:59

NAV up, now trading at a 5% premium.

[vacendak] 07/4/2017 10:53

The above mentioned AR is out in its full PDF glory.


The dividend cover goes up a bit, still not enough, but improving. All the indicators are green, even if not very strong, but things are definitely back to normal after the difficulties of valuing the properties in the wake of Brexit.
FCPT is easily beaten by a bland FTSE tracker over the year though.

[speedsgh] 03/4/2017 14:07

Results for the Year Ended 31 December 2016 -

[vacendak] 17/3/2017 20:31

Nice jump by 4.7p today to heights not seen since months before Brexit.

[vacendak] 08/2/2017 21:08

NAV update today (gone up):


FCPT is now officially trading at a slight premium, like in the days of old.

[vacendak] 03/2/2017 12:15

Just checked the website: The Q3 2016 factsheet is now available.


No actual comment, just numbers and they do not look that great, nothing alarming though. Well, at least the dividend keeps coming regularly.

[vacendak] 13/1/2017 19:45

I wonder where the author got the NAV estimate that supposedly put FCPT at a premium again:


We are due a factsheet/NAV update soon I assume.
The last time was end of September and it was 132p. The share price is hovering about 136p at the moment.

[eggbaconandbubble] 13/1/2017 18:13

Looks like after Questor's write up matey managed to off load over quarter of a million at 136p!

Maybe I'm just a cynic!!!

[vacendak] 23/12/2016 10:58

Cashing in on a building in central London:



Positive move compared to valuation, so good news. We should know soon where they are going to re-invest it. From the RNS, it is assumed away from Central London.

[vacendak] 23/11/2016 09:04

Getting close to be back above 140p.

[vacendak] 10/11/2016 08:27

Now making money out of this one when I include the dividends: The magic of investing monthly and re-investing the divi, on the way down followed by a rebound.

I entered the game when FCPT was at a premium... and more or less when the share price started to go South even before Brexit.

[vacendak] 04/11/2016 12:55

Everything in my portfolio seems to be dropping these past few days because of the latest polls about Trump, except FCPT!

[vacendak] 31/10/2016 09:01

AN RNS about the latest NAV:


At 132p, it is down from last time (June 30th: 134.1p) by 1.6%. Nothing terrible considering the buffeting taken by the sector lately. Good performance from the Midlands, biggest drag was from "rest of London". Oddly enough warehouses have been doing badly.
The ungeared decrease was only 0.9%, a lesser fall than the IPD Index (3.6%). I wonder if the portfolio had gone up they would have mentioned an ungeared improvement which obviously would have been less than the geared value... :)

The share price is still showing a slow but steady recovering trend.
The gearing is up a bit at 20.7% (19.9% back in June).

[vacendak] 25/10/2016 21:21

Still ticking-up/recovering nicely.
Another few points like today and I would be back in the black on total returns.

[vacendak] 20/10/2016 14:36

Indeed, we are on the same page viz Brexit.

The problem I guess is that the latest NAV was for June 30th, i.e. seven days after the event, so until we get a new one - this should be soon, last year it was published at the end of September - it might be difficult to have a reliable idea of how much the various properties are really worth.

My bet, and that of those people currently buying I assume, is that the last June NAV of 134.1 (slightly down from 135.1 in March) was very conservative because of the situation at the time (valuation experts being temporarily blinded) so we could expect a higher value in the forthcoming Q3 factsheet.

Not sure if the latest inflation number of 1% YTD, or "hyperinflation" according to the Financial Times :) would have any effect on the forthcoming NAV estimate.

[eggbaconandbubble] 20/10/2016 13:25

Just the slow realisation that Brexit will eventually benefit the overall economy and everything related.

[vacendak] 20/10/2016 13:02

I may have put on some rose tinted glasses, but it looks like the share price has been picking-up over the past few days, especially intra-day (right now it is up by 1.1p). The value at close is more sedate, but encouraging. Still a long way to go to be back to 145+ of course.

[vacendak] 13/10/2016 10:04

Another month, another dividend ex-date today.
The share price has sort of stabilised with a slow continuous decrease.
We need to wait for the next quarterly report and a new valuation for the NAV to see if the trend will change.

[vacendak] 02/9/2016 13:18

FCPT has been recovering slowly but steadily over the past month or so now.
Still at a discount and I am not expecting it to be back up to 145.5p any time soon (its 52w high), but with the economic data refusing stubbornly to turn sour despite our "stupid" Brexit vote, there is hope for the share price I guess.

[vacendak] 24/8/2016 13:54

Half-yearly report is out.



Mixed bag, good news on the dividend cover, which is increasing, but still below 100%.
Gearing ticking upwards slightly at 19.9%, it used to be 19%.
NAV down a bit but likely mostly due to the difficulty on obtaining a reliable valuation due to post-Brexit jitters. So the NAV could technically be also slightly up in real terms.

The yield is up, but calcutaled for the poor share price at the end of June, the important thing is to see that the yearly dividend is maintained at 6.0p per share, which is what I am mostly after with this type of investment.