Highcroft Investments Share Discussion Threads

[crumppot] 14/5/2018 15:39

Yes it is looking very good.

[skyship] 14/5/2018 15:07

The more I read this; the better I like it. At today's offer price of 910p the Yield = 5.1% & the discount = 21.6%:
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Property portfolio:

Under the guidance and leadership of Simon Gill we purchased two warehouses during the year which were financed by a combination of existing cashflow, recycled cash from a property sale and a new debt facility which in turn reduced the average cost of debt to 3.64% and left gearing at a modest 29%. 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.

Property rental growth of 22% for the year is the strongest performance over the last 5 years and with contracted rent at the year end being 21% up on the previous year end this shows the increase in rental income continuing into 2018.

We have stringent criteria for new tenant acceptance and at the year end all properties were fully let to a strong tenant base. Through a combination of stable income yields and active asset management I am pleased to report an 8.4% increase in net asset value and 11.9% return on equity for the year (2016 8.0%).

Dividend:

The company's interim dividend was increased by 8.3% and as a result of strong revenue growth, efficient use of debt and administration costs falling as a percentage of revenue we have increased the final dividend to 30.0p per share leading to a total dividend of 46.25p per share - an increase of 12.8%. Our stated strategy is to increase dividends in excess of inflation every year and I am pleased to say we have delivered an inflation busting 45.4% increase over the last 5 years.

Outlook:

Highcroft is well positioned with a high quality income producing portfolio. We go into 2018 with positive momentum gained in 2017 and well positioned to continue our portfolio growth. We are however in a very competitive landscape with continuing political uncertainty so we remain cautious and diligent in our approach in ensuring we select the right properties to deliver long term shareholder value.

[skyship] 03/5/2018 08:19

XD 30p dividend today...

[semper vigilans] 12/4/2018 10:59

Though they still might be after a rent reduction.

[skyship] 12/4/2018 10:28

Ahh - good - thnx for that

[semper vigilans] 12/4/2018 09:08

Wisbech Carpetright not on the list of closures.

[topvest] 24/3/2018 17:39

Yes, agreed. Looks good value again.

[skyship] 24/3/2018 14:40

I suspect the trade of 1000 shares @ 880p just after the Market open was actually a very well-executed purchase, not a sale as reported. Someone sold 650 shares the previous afternoon at 865p, so entirely possible. Well done if one of you!

For me the standout stat yesterday is that NAV figure of 1161p, providing a 22.5% discount at 900p; still 20.8% at 920p.

Remember just 2-3yrs ago HCFT traded at an NAV premium!

Provided no real Market alarums, the chart suggests a breakout North to a target of the 2015 high at 1075p.


free stock charts from uk.advfn.com

[topvest] 23/3/2018 21:22

Yes, all good. Would like them to keep gearing under control though. Part of the attraction of this company has been its modest gearing.

[semper vigilans] 23/3/2018 07:32

Good stuff!

[skyship] 23/3/2018 07:25

Fantastic figures announced this morning. Pity Markets so bad; but even so, with HCFT @ 900p the yield = 5.14% and the NAV discount = 22.5%

Preliminary results for the year ended 31 December 2017
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KEY HIGHLIGHTS:

# 22.0% increase in gross property income to GBP4,765,000 (2016 GBP3,906,000)
# 16.8% increase in investment property valuation to GBP77,113,000 (2016 GBP65,997,000)
# Property acquisitions of GBP9,480,000 (net of costs) and disposal proceeds of GBP2,292,000
# 8.4% increase in net asset value per share to 1161p (2016 1071p)
# 57.5% increase in earnings per share to 132.3p (2016 84.0p)
# Medium term debt GBP19,400,000 (2016 GBP14,900,000); net gearing 29% (2016 21%)
# Cash and liquid equity investments GBP4,035,000 (2016 GBP5,838,000)
# 15.4% increase in final dividend to 30.0p per share (2016 26.0p per share)
# 12.8% increase in total dividend to 46.25p per share (2016 41.0p per share)

[semper vigilans] 19/3/2018 17:45

Thanks Crump.

[crumppot] 19/3/2018 17:40

Results friday I think

[semper vigilans] 19/3/2018 12:26

Results next week?

[semper vigilans] 15/12/2017 10:44

Looks a good appointment.
It will be an even better one if he buys some shares very soon.

[skyship] 15/12/2017 09:22

Well that is certainly a very interesting appointment - see Header. Charles Butler - the former CEO of Market Tech - the £3bn propco which owns great chunks of Camden Market. Certainly a vote of confidence in HCFT & its Board.

Having bought back in @ 880p I was waiting for another offer at the same price; but on today's appointment I've decided to pay the full 900p.

[semper vigilans] 27/11/2017 13:52

The book is normally managed tightly on HCFT - I’m presuming the deals may have been done ‘outside’; - could be wrong.

[skyship] 27/11/2017 13:43

Ahh - Trades show someone else picked up the other 1000 shares "foolishly" discarded at 860p this morning. The later buyer paid just 875p. Well done someone - hope it was one of you on this thread...

[skyship] 27/11/2017 12:09

Quite a few director buys this year - all in the 900s. They don't amount to much in total; but surely a show of confidence.

Anyway, having been lucky with my timing when selling @ 940p, from the Trades record it looks as though I may have been lucky to pick up from a stray seller as I bought back in today @ 880p.

Tried for a 2nd 1000; but back to 900p cheapest offer at the moment. Will watch & wait as at 880p the discount is 19.8% v. the Jun'17 NAV, whilst the prospective yield is now at 5% to a likely 44p total dividend. Has to be attractive at this level.

[semper vigilans] 31/7/2017 10:12

It would be nice to see other directors buying too.

[crumppot] 31/7/2017 09:28

Highcroft is very unlikely to merge with anyone as they have a controlling shareholder the Kingerlee Group. I think they will want to grow internally.

[skyship] 29/7/2017 10:41

mw8156 - Ahh - sorry for doubting you!. WSP - a real minnow - will add it to the CP+ Header.

[mw8156] 28/7/2017 23:04

wynnstay properties wsp is the other wynnstay, a small property plc would be a good fit for cardiff and highcroft but would require willing

[skyship] 28/7/2017 21:33

If you're searching for propcos - go to the CP+ thread...

[skyship] 28/7/2017 21:32

WYN - "A group engaged in the supply of agricultural feeding stuffs; the distribution of arable farm inputs and the merchanting of general agricultural products"

nw8156 -Doesn't look like a property company to me!!!