Gcp Student Living Share Discussion Threads

[jonwig] 14/5/2014 14:18

Spangle - some open-ended funds (OEICS?) folded a couple of years ago because of redemptions and forced asset selling.
This won't happen with ITs and REITs as they are closed-ended.

I do think the momentum lies with overseas students - rich foreigners don't just buy London homes, they send their kids here to study!

[spangle93] 14/5/2014 09:50

And there's Unite too - wonder how many companies can tap this market, especially as more students are choosing to stay at home to study to avoid adding to debt.

Terms look attractive though - thx jonwig

[jonwig] 14/5/2014 08:47

Worth looking out for a new REIT, Empiric Student Housing, IPO in June:



Similar size to DIGS, properties outside London, and:

...targeting a 13pc total shareholder return, once fully invested, which includes a 6pc dividend yield and a 7pc growth in net asset value per year.

[spangle93] 28/4/2014 17:53

Quite right - I was thinking that one company (VOD?) changed the dividend payment milestones when it overlapped with a corporate action.

[jonwig] 28/4/2014 17:38

They are xd on 7 May, so the new shares won't be eligible - as one would expect - after all, they haven't earned it!

[spangle93] 28/4/2014 15:26

True current price is around 106p

Does this get in the way of the announced dividend declaration, or will that proceed as previously announced

[jonwig] 28/4/2014 15:07

So it's 1 for 2 as suggested, but at 105.5p. I assume they are confident of getting it away.
Decision date 16/05 but nominee brokers will want it before then.

[spangle93] 23/4/2014 17:51

Thanks WirralOwl. That does look to be of interest in principle, but you have to take a lot on trust, as there doesn't seem to be a thread for GULF, or any news for that matter. How do we tell what they've invested in - they are supposed to be fully invested in 4-6 months of launch?

First divi not til November though - and no advice on ex-div date.

The introduction video is very high level, and the only thing that would make the guy scarier would be if he were stroking a white cat on his lap.
www.gcpuk.com/site/gcpu/templates/generalsection.aspx?pageid=199&cc=gb

But it does look as though the premium is consistent.

[wirralowl] 23/4/2014 09:17

Don't know about a posse, Spangle, but there is at least one more..! :-)

Thanks for your input jonwig, as always.

I also like the look of another GCP fund, GCP Sovereign Infrastructure (GULF) which is investing in infrastructure in the Gulf States and aims to offer a dividend of the highest of 7% or Libor plus 6.5%, reset every 3 months, but again it seems to be trading at quite a premium to NAV at the moment.

[spangle93] 23/4/2014 07:24

Thanks jonwig - I probably got my words wrong, but the key thing you outlined is that existing holders would have a chance to purchase shares at the offer price.

To be honest, the latter course appears lower risk, but if there is a posse like me around, maybe the share price will never actually touch the issue price!

[jonwig] 23/4/2014 06:56

Hi Spangle.

Judging by some recent issues in the infrastructure space (so not propcos) and the current premium, I suggested about 104p in a recent post.
I'm sure they've sounded out key shareholders already!
1 for 2 wouldn't raise the amount wanted though.

Not so much a rights issue as an open offer - ie. you take the offer or lose it. A few institutions would be on hand to hoover up the surplus.
This method is a lot cheaper for them than a rights issue, and you don't have nil-paid shares which you can sell in the market.

If you're wary maybe wait until after the ex-entitlement date or even after the new shares are allocated, when you should get a lower price.

[spangle93] 22/4/2014 21:23

Hey jonwig. I had a look at these over the long weekend, and I was thinking of dipping a toe in, but like WirralOwl, the elephant in the corner is the stated intent of a fund raising. Since this will be "at a premium to the prevailing net asset value of the Company", I guess it could be as low as 101.6 if I understand today's RNS correctly, which would wipe out a year's growth.

Can you offer an opinion - when they state "Any such equity raise would be...on a pre-emptive basis to shareholders on the Company's register as at the
record date." is that a posh way of saying "rights issue"?

[wirralowl] 22/4/2014 12:41

Might look to get into these if the fund raising brings the share price down closer to NAV, as like the area they're in here.

[jonwig] 22/4/2014 12:34

Target raise of £42m gross. "Details shortly".

[jonwig] 14/3/2014 11:29

Possible equity raise on a pre-emptive basis of £30m - £43m at a premium to NAV.

Currently 70m shares in issue with a NAV of 100.29p.

The issue price won't be as high as 107.5p, and the share price is quite capable of falling on this news, to say 104p. I'd guess 1 for 2 at 104p on a use it or lose it open offer basis.

[jonwig] 06/12/2013 11:50

Potentially unlimited expansion of student numbers in England, announced in yesterday's Autumn Statement.

Plenty will come from abroad (willing to pay more rent), and DIGS has acquired a second asset with more to come. Dividend target 5.5p, with indexing.

The trades today @ 106.4p are buys.

[jonwig] 18/9/2013 11:21

Positive article:



... but it confuses DIGS with GCP (the infrastructure fund).

(To use the link, close the spaces in i_i_i)

[jonwig] 11/7/2013 10:19

Smithie - you are right to draw attention to the potential conflict of interest, as I did in post #3.

Since the company is a REIT, it will be difficult to manipulate the accounts in the way you suggest, though not impossible. Investors will need to monitor how costs progress after the first two years.

In all, a dividend yield of 3% linked to RPI is quite attractive. If voids increase or aren't over 10%, part of your concern will be addressed. And capital values in London have been pretty resilient.

[smithie6] 11/7/2013 10:04

ADVFN is running an accouncement offerring up to 60% return by investing in film production.

lesson ?

dont believe everything you read !

[smithie6] 11/7/2013 10:02

oh
and I forgot to mention the debt...
looks like at least 20M
so interest costs have to be paid...

London is not a good area to get a good yield imo....
property and land prices are very high relative to the income that can be achieved imo

and if those prices fall in future years...then a capital loss would occur....in addition to perhaps not receiving hardly any divi

[smithie6] 11/7/2013 09:54

"It is expected to generate a rental yield of 5.5 per cent, with rents - which drive dividends and property values - rising roughly in line with RPI inflation.

The cosy relationship between GCP Student Living and Scape Living is a potential concern."

That is enough information to keep me well away !!
----

Here is why.

(property company shares can often be scams.....a manager does a float...and organises that he is on high yearly costs.....and if possible controls the bod so that no one will change his high yearly costs !!.....

with a rental yield of 5.5.....then after you pay for maintanence, rubbish tax, night security man.....and the high costs of property division manager....
and auditor, bod, bod expenses, listing costs....

perhaps shareholders will get....1% return ?...0 ?


the above is exactly what has happened at PHU
and the prospectus promised a share YIELD for first 2 years of 3-5%
it was paid....then...nothing !!

and share price has crashed....since the manager soaks up all the rental money !!...none builds up in co. accounts or into shareholder accounts

and the manager who organised the whole thing...Mark Sheppard...who owns/controls Midas ..the property manager
has now put a large % of the co. in his pocket

and talk of de/listing.....

MS and Midas look set to keep getting the income as manager...for ever !!
and have picked up assets very cheap.....cause no one else wants them !....not if you will never get any income !!

[mirandaj] 21/5/2013 11:47

jonwig

The connection is to be seen in the link I gave:



5.5% and rising return is not to be sniffed at these days.

[jonwig] 21/5/2013 11:00

IC article from April:



Probably subscriber-only, but three key points:

It is expected to generate a rental yield of 5.5 per cent, with rents - which drive dividends and property values - rising roughly in line with RPI inflation.

The cosy relationship between GCP Student Living and Scape Living is a potential concern.

Shareholders need to monitor the market and management closely, but GCP Student Living, nonetheless, looks like an attractive pure play on a sector that offers a compelling mixture of income and inflation protection.

Not a buyer ... maybe future.

[khutchins1234] 21/5/2013 10:50

Will post a more signifcant message soon, but the ticker is fantastic.

[mirandaj] 21/5/2013 10:47

Picked up by The Daily Mail this morning:

From Geoff Foster's Market Report:

"Placed at £1 by Cenkos Securities, GCP Student living got off to a firm start. Shares in the first student accommodation REIT in the UK was supported up to £1.045 before closing at £1.0375. The company invests in modern, purpose-built private student rental accommodation and teaching facilities in prime London locations. Its initial asset will be Scape East, a fully occupied, 588 studio bedroom facility in East London"