Highcroft Investments Share Discussion Threads

[eeza] 21/5/2019 14:46

Especially when you try to sell...

[redponza] 21/5/2019 14:41

The stock is really thinly traded...
Very very illiquid...

[rcturner2] 21/5/2019 09:29

Thanks for the heads up on this skyship, I bought in yesterday.

[skyship] 20/5/2019 13:54

BT - It was indeed. Need to buy another 1k; but will wait to see if a cheaper offer comes along sometime this week...

[badtime] 20/5/2019 12:33

Sky ...I take it that was your 1k buy on Friday

[skyship] 02/5/2019 14:19

Agreed. The arbitrage at the moment and possibly for quite sometime, suggests criminal for a REIT not to take advantage!

[stemis] 02/5/2019 11:54

Seems a solid acquisition. With debt costing 3.64%, a yield of 7.04% should generate an extra 3p a share.

[skyship] 02/5/2019 08:03

XD 33.75p today

[skyship] 01/5/2019 18:42

Another acquisition:

[skyship] 20/4/2019 14:15

red - ad idem with eeza - AEWU & RGL.

Whether or not new to the sector - join us on the Commercial Property thread:

[eeza] 20/4/2019 10:34

AEWU
RGL

[redponza] 20/4/2019 09:36

Guys, new to the board and Highcroft which I just picked up recently.
Actually new to UK REIT investment!

Besides Highcroft, any other REIT currently on your watchlist?
I have taken a look at NRR based on yield, but that REIT seems to be in some muddy water lately...

[stemis] 26/3/2019 17:40

Conservatively should add 10p a share to earnings.

Earnings from rental income last year were 67.6p, from which they paid 52.5p in dividends; a yield of 5.7%. Suggest we should be looking at a 15% increase this year.

[crumppot] 26/3/2019 17:06

looks like a good purchase with prospects

[skyship] 26/3/2019 16:48

Propery Acquisition:

The Board is pleased to announce that Highcroft Investments PLC has today completed on the purchase of the 984 year leasehold interest of a maintenance, research and development facility investment in Llantrisant, South Wales.

The property comprises a complex of three buildings providing a mixture of office and workshop space totalling approximately 111,000 square feet, together with a development site, on a 20.67 acre site. It is occupied by British Airways Avionics Engineering Limited on a lease expiring in March 2024 and produces an income of GBP805,011 per annum. The net purchase price was GBP6,499,550 which represents a net yield of 11.52%. The property was acquired from Rockfleet Holdco 1 Sarl. The acquisition was made from existing cash reserves and debt facilities.

================


Haven't picked it up on Google maps yet; but the whole area very a very modern engineering/science park. To get that on an 11.5% yield does look surprisingly good value - even if it is in Wales!

[hugepants] 22/3/2019 08:58

The low gearing is a positive and the discount and yield are attractive but 0% voids?Isn't that more of a negative. Less upside.

It's a tiny REIT and very illiquid with a 4.5% spread which is not far off the annual dividend. It will be really difficult to exit this if there is a market crash.

[semper vigilans] 22/3/2019 07:46

Solid stuff as usual.

Share options are fine, but it would be good to see some of them buying in the market prior to the grants.

[skyship] 22/3/2019 07:43

Another laudable performance. At 920p the NAV discount = 23.8% and the Yield = 5.71%.

[skyship] 22/3/2019 07:38

Preliminary results for the year ended 31 December 2018
=======================================================
KEY HIGHLIGHTS:

-- 5.8% increase in gross property income to GBP5,043,000 (2017 GBP4,765,000)
-- 0.8% increase in investment property valuation to GBP77,700,000 (2017 GBP77,113,000)
-- Property acquisitions of GBP5,226,000 (net of costs) and disposal proceeds of GBP6,145,000
-- 4.0% increase in net asset value per share to 1207p (2017 1161p)
-- 28.0% decrease in earnings per share to 95.3p (2017 132.3p)
-- 34.7% increase in Adjusted earnings per share to 87.3p (2017 64.8p)
-- Medium-term debt unchanged at GBP19,400,000; net gearing 23% (2017 29%)
-- Cash and liquid equity investments GBP5,881,000 (2017 GBP4,035,000)
-- 12.5% increase in final dividend to 33.75p per share (2017 30.0p per share)
-- 13.5% increase in total dividend to 52.50p per share (2017 46.25p per share)

Dear Shareholder

Introduction

I am very pleased to be delivering another strong set of results. There is no doubt that 2018 has been a year of prolonged political and economic uncertainty, and even against the backdrop of protracted Brexit negotiations the company is reporting continued net property income growth of 7.8%, total shareholder return of 5.2% and a 13.5% increase in the total dividend to 52.50 pence per share.

[skyship] 13/2/2019 15:05

Agreed, a rather unusual purchase that one; and there may indeed be more in it than immediately meets the eye. Hope so at any rate!

[kenny] 13/2/2019 13:18

Thanks Skyship. I think I was just lucky because my buying coincided with someone selling 5k.

My only comment at this stage is in relation to the purchase of the health and fitness club in June 2018. I note your earlier comments that a 7% yield does not seem a very attractive purchase.

I wonder if the reason for this purchase lies in the comment in the announcement that the property “occupies a large site in an area of Birmingham which is expected to witness further development”.

I wonder if this comment indicates that the whole site (3-acres) or part of it, has development potential for residential use. The lease expires in 2024 but maybe the tenant will be encouraged/wishes to leave early – or the company is happy to wait until 2024 and review its options then. I have no idea of development land values in Birmingham or this property's precise location, so this is pure speculation based on what might be an incorrect interpretation of the company’s RNS.

[skyship] 13/2/2019 08:59

Welcome aboard Kenny. My last top-up of 2500 four months ago was at 910p...took three trades over four days! The stock was there all along; just the MM hoping I would pay a little more...

[semper vigilans] 12/2/2019 16:42

Pretty titely held Kenny. Small volume traded.