Highcroft Investments Share Discussion Threads

[kenny] 22/7/2019 14:41

I am guessing that there is going to be another write down of the retail assets in the second half and that it will exceed the 1% seen in the first half.

I am invested for the dividend but it looks like others may be selling because, at present, it is difficult to see a bottom in the recurring write-downs of retail property values. In my opinion, which could prove to be in error, this may explain the regular selling of shares in HCFT.

Results may have been released early because, if values are steadily falling, it does not pay to wait.

[skyship] 22/7/2019 10:54

As crumppot says - most REITs trade at a discount. There are very occasional exceptions, such as CREI, but on the whole that discount measure is a very good indicator of value if you are happy with all the other propco parameters.

I think I'm right to say that HCFT traditionally always traded at a pretty limited discount; and only recently has it widened out to more than 15%. Currently at the offer price of 925p the discount = 22.6%.

A nice, well-managed, slow-burner store of value on a 6% yield.

[crumppot] 22/7/2019 09:46

Most REITS are trading at a discount to NAV.

[spectoacc] 22/7/2019 09:27

More likely due to their retail holdings - anything with retail, even "retail sheds", is seeing NAV falls at each revaluation.

[cfro] 22/7/2019 09:24

Out of interest does anyone know, or have any opinions as to why the large discount to NAV? (According to todays results NAV now stands at 1195p.)

I assume that part of the reason could be due to some leverage (debt) they use.

[semper vigilans] 22/7/2019 08:33

Very efficient - preparing for something?
Probably not!

[skyship] 22/7/2019 07:59

Surprised by the slightly earlier than normal Interims.

Happy at the small write-down in the portfolio valuation; and that 94% of that net write-down was due to acquisition costs.

Also good to see a 12% increase in the interim dividend; so possibly looking for 55p or even 55p+ this year (52.5p). 55p would put the yield at 6.11% at 900p.

[skyship] 13/6/2019 14:53

Hi BT - bought a few more at 900p ahead of this move. 12.5% allocation high enough.

Bt more EPIC today at a smidgeon under 92p - 18% discount and 6.25% yield, though likely to be higher this year as divi covered 1.175x.

[badtime] 13/6/2019 12:33

Sky ..not sure you are going to get that second tranche at the price you wanted :)

[spangle93] 12/6/2019 22:47

Semper vigilans - given the wide spread that seems to be permanently present with this stock, plus its low profile, it's hard to think that traders would touch it

[crumppot] 12/6/2019 16:21

Skyship - when the company was set up, there were 3 families involved and the Kingerlees are the only one left with a representative on the company board. The other 2 families shares have probably been passed down the generations and occasionally when there is a death they are sold on as in this case, I would guess.

[skyship] 12/6/2019 15:55

SV - agreed, could be an estate, could be a PI, could be a small institution (tho' none declared).

But how does one know the age profile of shareholders - never seen that mentioned anywhere, HCFT or any other company...

[formeranalyst] 12/6/2019 15:55

I think there was a deceased estate’s holding being slowly dripped onto the market at 875p over the last few months and this was finally cleared in last week’s volume. Good interim figures in August and a further healthy dividend increase ( remember, REIT rules mean 90% of property profits have to be distributed as dividends)would suggest that the discount to the £12 asset value/share should narrow. I think they will be £10-£11 later in the year. Bit difficult to deal, though.

[semper vigilans] 12/6/2019 15:21

‘InvestorsR17; rather than ‘traders’;.
Edit - IMHO!

[crumppot] 12/6/2019 14:23

Semper V, who is suitable and who is unsuitable?

[semper vigilans] 12/6/2019 14:14

No matter if suitable parties are acquiring them.

[kenny] 12/6/2019 14:08

Shame the market does not ring a bell when they have finished selling!

[semper vigilans] 12/6/2019 13:58

Could be an estate selling as the age profile of shareholders might suggest?

[kenny] 12/6/2019 13:54

I agree with SV, there does seem to be someone disposing of large blocks of HCFT.

[semper vigilans] 12/6/2019 13:37

I wonder who is disposing of these shares (unusually large sized lots) for HCFT?

[skyship] 12/6/2019 13:32

10k bought @ 915p...encouraging perhaps...

[crumppot] 08/6/2019 10:14

I don't think they are part of the Kingerlee family, just another family group of investors. They have been at the AGMs and asked questions.
From my office too!

[crumppot] 08/6/2019 10:12

I don't think they are part of the Kingerlee party, just another group of investors. From my office too!

[skyship] 07/6/2019 18:02

Agreed, both extraordinarily coy and hilarious. Usually the address just repeats in clause 11 what stated in clause 3. They do seem rather reclusive as haven't found anything about them when previously researching. I've always just assumed they are architects and part of the Kingerlee group of companies...

Between them, I recall they control c44%.