Gcp Student Living Share Discussion Threads

[jonwig] 31/5/2018 06:36

New Edison research note issued. Summary: GCP Student Living (DIGS) REIT provides exposure to the specialist purpose-built student accommodation real estate sector, with a focus on London (95% of the investment portfolio value). The sector benefits from a positive demand-supply balance and good levels of rental growth, while being much less exposed to economic-led cycles than mainstream commercial real estate. With a growing student population and competing demands for space, the supply shortage in London is particularly acute. DIGS aims for regular sustainable dividends with RPI-inflation linked characteristics and modest capital appreciation. Shareholder returns since the IPO are well ahead of the 8–10% long-term target.

[stemis] 22/3/2018 10:39

Jonwig - Yes, there's an element of that in both cases I guess. Just interesting. riverman77 - operational efficiencies - yes, clearly (which as an ESP shareholders gives hope the gap will be closed). Supply/demand inbalance - well that has to manifest itself in higher rents, which is the point I made, and/or occupancy. ESP has issues with particular specific locations, hopefully being addressed, whilst DIGS claims fully let (although doesn't define that, I'd be surprised if its 100% occupancy over the period, ESP use 97% occupancy as 'fully let')

[riverman77] 22/3/2018 10:30

Aside from the greater operational efficiencies, the key point for me is that DIGS focuses on areas where there is clear demand/supply imbalance (ie mainly London) in contrast to some towns where there seems to be a glut of new student buildings.

[jonwig] 22/3/2018 10:18

SteMiS - on point (2), I think there was a new unoccupied development and maybe cash drag from a funraising. Check - yes, they refer to it in a number of places. On points (1) and (3) I haven't a quick, simple answer.

[stemis] 22/3/2018 10:06

Since you mention Empiric... I do follow DIGS are an interesting comparator to Empiric. I'm struck by two things initially. 1. How little DIGS spend on property operating expenses. Gross profit was 77.7% compared to 56.6% in Empiric (2019 target - 70%). It could be due to DIGS charging higher rents. They'd have to be 34% higher to close the gap between 70% and 77.7%, although I imagine individual costs are higher in London. 2. A lot of attention is paid in Empiric as to when the dividend will be covered by rental profits (i.e excluding revaluation surpluses) however I notice that DIGS dividend isn't covered by rental profits either. 3. Both seem to have similar administration costs - 20.9% of rent in DIGS and 21.8% in ESP (H2). However that seems slightly out of kilter with point 1. If rents were higher then I'd expect DIGS admin cost % to be correspondingly lower...

[riverman77] 22/3/2018 08:47

I think there is some contagion from the issues facing the Empiric student fund. This was due to operational failings and entirely unrelated to DIGS which looks pretty solid, so I see this as a good buying opportunity, if only I had spare funds.

[jonwig] 22/3/2018 07:25

HY report, NAV 146.1p. Strong results. Strange to see a discount! Https://www.investegate.co.uk/gcp-student-living--digs-/prn/half-year-report/20180322070000P13A1/

[jonwig] 05/2/2018 06:51

"The number of foreign students applying to British universities has hit a high, despite warnings about the impact of the Brexit vote on higher education. More than 100,000 EU and overseas candidates have applied to take up places this autumn, the first official figures for the year show today. " Https://www.thetimes.co.uk/edition/news/foreign-students-apply-to-uk-in-record-numbers-3msxsff8z

[trytotakeiteasy] 11/12/2017 12:09

Probably a more pertinent ratio is the amount they paid per room compared to the rental per room. However, the latter would be hard to get as each accommodation block has different room types with different rents. £160k a room isn't too bad. If the average weekly rent is say £230 then that is £12k for a gross yield of 7.5%. However, this is before costs. hxxps://www.scape.com/en-uk/student-accommodation/podium#rooms

[jonwig] 11/12/2017 09:15

Actually, yes, they've paid a lot more than this (per bed) for some assets For example Woburn Place 420 beds for £135m (plus refurbishment costs) in March. And, as you say, quality is important for these moneyed overseas students.

[trytotakeiteasy] 11/12/2017 08:52

jonwig - hard to say. Student accommodation has a lot of shared facilities so you are buying more than a room. You can't buy a decent studio flat in central London for less than £400k....

[jonwig] 11/12/2017 07:11

New investment: https://www.investegate.co.uk/gcp-student-living--digs-/prn/new-acquisition/20171211070000PE9E0/ £160,000 per bed - London prices a bit crazy?

[trytotakeiteasy] 23/11/2017 11:39

The latest quarterly report from GCP Student showed a good start to the year with the NAV up.....risk is probably that GCP may need to raise more equity to develop a new site at Mile End...however, they have previously raised money above NAV and so it has boosted NAV.....rental growth for current student calendar year was strong at 4.1%... https://www.investegate.co.uk/gcp-student-living--digs-/prn/dividend-declaration-and-net-asset-valuation/20171026070000PDC34/

[edwardt] 23/11/2017 08:22

the mess at empiric may be hitting sentiment.however this is clearly the quality play in the sector. I retain mine as a result.

[davr0s] 14/11/2017 18:06

Whatever reason support broken so I'm out. I can always reenter at a later date

[hiddendepths] 14/11/2017 16:13

Quite a few of the "safe" yield stocks are being savaged for some reason.

[scallywagkid] 14/11/2017 15:21

Likely a private client manager turning over a portfolio or two. When fundamentals OK just need to look through such events.

[davr0s] 14/11/2017 14:30

Hmmmm - making 1 year lows never a good sign

[trytotakeiteasy] 14/11/2017 11:38

surprised by the drop here... the interim report was pretty good...

[jonwig] 08/11/2017 07:17

FT: Amber Rudd, the home secretary, is leading a new cabinet push to remove students from the government’s immigration targets, in a move that will delight universities but put her on course for a clash with the prime minister. Theresa May is said by one minister to be in a minority of one in the cabinet in believing that students must be counted in the target, and she has been implacable in her resistance to any change in policy. But Ms Rudd believes that unless the prime minister changes her position in the coming weeks, the government will suffer a humiliating defeat early next year when the Commons considers a bill to set up a post-Brexit immigration regime. One ally of the home secretary said it was certain that there would be an attempt to amend the Immigration bill: “We’re going to have to do something about this ourselves, or we will be forced into doing it.” Only 26% of DIGS' students are from the UK.

[jonwig] 09/10/2017 13:42

suet - yes, UTG is a more 'exciting' stock than DIGS, with potentially bigger upside, until the sector tops out. Then DIGS will be the defensive one. For the time being, DIGS will be rather boring!

[suetballs] 09/10/2017 12:16

Good news from Unite this morning. Suet

[suetballs] 29/9/2017 15:29

In for a few today - prospects look promising. Suet

[jonwig] 15/9/2017 06:15

FY results look outstanding: Https://www.investegate.co.uk/gcp-student-living--digs-/prn/annual-financial-report/20170915070000PD022/ Note fully-covered dividend costing £22.1m from profits of £23.5m.

[jonwig] 05/7/2017 06:20

On 13 June 2017, the Company announced a placing of new ordinary shares (the "Placing Shares") targeting gross proceeds of £70 million (the "Placing") to fund the acquisition of two student residential accommodation assets (the “Target Assets”). The Company has received applications from investors substantially exceeding the target gross proceeds. As applications for Placing Shares have substantially exceeded the target, a scaling back exercise has taken place. Accordingly, the Board has resolved to accept applications in respect of 49,295,774 Placing Shares at 142.0 pence per Placing Share, raising gross proceeds of £70 million. They've also announced forward-funded development in Brighton. Cost £70m.