Highcroft Investments Share Discussion Threads

[skyship] 01/8/2018 09:36

Glenstone - 2% premium to NAV, not LSE listed, resi & retail.....definitely not one for me. Thanks all the same; always useful to see other valuations.

[crumppot] 01/8/2018 09:18

They are listed on the channel island stock exchange. they are capitalised at about £125m. They have a mixed portfolio of Resi, shops, pubs and even an ice rink.

[eeza] 01/8/2018 07:28

Maybe this:

[skyship] 01/8/2018 07:23

Crumppot / SV - I am unable to find a stock called Glenstone! Could you perhaps oblige with an Epic....Thnx

[semper vigilans] 31/7/2018 10:54

Thanks Crump - bit too biased toward resi and retail compared to HCFT.
Sensible gearing though.

[crumppot] 31/7/2018 10:26

Anyone looked at Glenstone, which is tightly held but also another well run REIT.

[semper vigilans] 31/7/2018 10:03

Good point Skyship.
There are other REITs that do not yield as much as HCFT but have a narrower discount to NAV. They don’t seem to be so prudently run either.
I think the past has normally shown asset values to be slightly conservative here, but perhaps the spread deters investors slightly.

[skyship] 31/7/2018 08:43

I see that SREI announced their numbers today. NAV increase since Dec'17 = 3.9%; so perhaps our NAV increase for the same period will break through the 3% threshold...

[skyship] 30/7/2018 18:38

Contacted the company - Interims anticipated 9th August.

[skyship] 25/7/2018 14:28

So, what might we expect of our 30th Jun'18 NAV?

Well, looking at 3 other propcos (CREI, EPIC, PCTN) with relatively low LTVs throws up an average gain of 2.7% for H1'18. CREI's LTV is the lowest at 21% yet still delivers 1.7%.

I would hope we might deliver a 2.9% gain to 1195p - taking the discount at 940p up to 21.3%.

Better still I would like to see the Interim and Final dividends equalised out, with a small increase - say 25p/6month period. Currently 16.25p & 30.0p.

[skyship] 24/7/2018 12:12

Interesting to read the para below from an Ediston (EPIC) update last week:

"In considering the retail market it is important to distinguish between the three very different sub-sectors within retail, being high street, shopping centres and the different categories of retail warehouses. High vacancy rates in the first two categories reflect an oversupply of properties, expensive and badly configured retail space and the difficult trading conditions in the mainstream comparison shopping markets. The Company has no exposure to these two sub-sectors. In contrast the retail warehouse vacancy rate is at its lowest level ever at c. 4.5%, reflecting low levels of development over recent years and the cost effectiveness of large, easily accessible modern units."

Retail warehouses are HCFT's speciality... at the year end the portfolio stood at 74% warehouses and retail warehouses, with a small amount of residual residential and the remainder split between well let retail and offices.

[skyship] 05/7/2018 17:33

Missed that £4.9m purchase of the Nuffield Health Fitness & Wellbeing Gym in the Broadway Plaza, Birmingham. 7% yield. Doesn't exactly shoot the lights out though, as what chance of asset management gains. Maybe we'll hear more in the Interim Statement.

Interims later this month. 28 July last year.

Sleepy - sorry if I was rather peremptory over on the RLE thread. No way to behave to a long-standing contact!

[stemis] 19/5/2018 00:50

SKYSHIP - you are probably right about scale but I'd be happy if they just keep raising the dividend by at least inflation. I didn't buy on the basis that the discount would close at all (so it'd just be an unexpected windfall if it did).

[semper vigilans] 18/5/2018 23:57

Expansion is not always a benefit.
Usually a vanity trip for the board with a property company. Being cautious ha# always been Highcroft’s strength.

[semper vigilans] 18/5/2018 23:57

Expansion is not always a benefit.
Usually a vanity trip for the board with a property company. Being cautious ha# always been Highcroft’s strength.

[skyship] 18/5/2018 21:24

SteMiS - Naturally I agree with all of the above.

I suggest that the main problem here is the one of scale. HCFT is just too small for many institutions to buy, 5m shares in issue and a free float of c50%.

I thought perhaps the appt of Charles Butler was to find some solution, a way for a quantum leap in size without pre-emption of existing shareholders. Difficult, but who knows, maybe he'll come up with a solution.

[stemis] 17/5/2018 08:48

Oh, OK. What I like about HCFT is that they keep it simple and their accounts are very informative. These are our properties, who the tenants are and what we paid for them. All the information is there; rental yield, average lease remaining lease length and distribution, debt and when it falls due, average interest rate and what make up admin costs. I also like their commitment to increase the dividend by at least inflation, keep bonuses within 10% of distributions and the absence of options/LTIP.

Add all that to decent dividend, NAV discount and low debt and it's a good long term hold.

[skyship] 16/5/2018 22:13

Sorry SteMiS - Sleepy & I were, I believe, referring to MRF's comment on the MKLW thread. As to yr earlier comment, totally agree - and how often is it that you see a propco with zero voids; and been like that for at least 5yrs.

[yieldsearch] 16/5/2018 21:23

MRF = my retirement fund, a contributor on advfn

[stemis] 16/5/2018 20:39

Who/what is MRF?

[skyship] 16/5/2018 17:22

Exec Dir. David Kingerlee accounts for 42% of the equity - MRF had that one totally wrong! Interests of the directors in the shares of the company (audited)

The interests of the directors, and their connected persons, in the shares of the company at 31 December 2017 were as follows:
Directors: Simon Costa Simon Gill David Kingerlee 1,535,803 Roberta Miles 4,950
The interests of David Kingerlee set out above include the interests of his connected persons who include certain members of the Kingerlee Concert Party as described on page 35. David Kingerlee's personal beneficial holding at 31 December 2017 was 89,470 (2016 89,470).
Between 1 January 2018 and 22 March 2018, the only movements in the directors share interests were the increase of Roberta Miles' beneficial holding by 1,000 shares to 5,950.

[sleepy] 16/5/2018 16:38

Is it correct that Highcroft Directors do not have skin in the game?

[stemis] 16/5/2018 12:27

Looks like a decently run company, with good disclosure and fair balance between shareholder and management interests.

[semper vigilans] 15/5/2018 21:09

Yes Sleepy, see what you mean.
I don’t think RLE’s assets are on the same level.

[sleepy] 15/5/2018 20:40

Great to see Sky onboard here

Interesting to compare total annual costs of Highcroft with costs of RLE Directors.