Mckay Securities Share Discussion Threads

[jimbo3352] 29/5/2012 08:07

I was way out with my stab at the old Bothwell Street rent in fact the new rent is virtually unhanged from the old. Given the 15 month rentfree period and the 5 year tenant break, Student Loans seem to have negotiated a great deal. The reversal of the property write down will come through in next year's accounts.

[alanji] 28/5/2012 12:02

Good points made, Jimbo. I am hoping for more upbeat finals and think the dividend might even be increased

Och aye, Jonwig but the weather can be dreich. Maybe this website will gie ye a han.

I used to live 15 miles from Glasgow and went to university there but a good few years since I visited.

[jonwig] 28/5/2012 11:42

Thanks for that, jimbo.

I see that forecasts suggest a maintained 8.3p dividend but lower eps forecasts of about 10p. One Hold, one Sell.

eps is a pretty meaningless figure, of course!
But the dividend is determined by the net rental income, which ought to be improving - in future accounts, anyway.
And - as you say - NAV could well show some upside, again next year!

Alan JI - thanks for the picture. I've never been to Glasgow. Would I need a phrase book?

[jimbo3352] 28/5/2012 11:24

Re the Bothwell Street property, there was a £2.7m writedown on it last year in view of the impending lease expiry. This will reverse and there should be a further uplift for the new rent. Looking back at the last lease break, the accounts referred to a 15% increase quantified at £180k which also included back rent. That suggests the existing rent cannot be more than £1.2m. Even discounting the new rent of £2m by 25% (the rent free period to the next break in 2018) gives a decent uplift.

Re the Southwark property which renewed recently at £0.8m per annum, the accounts promised a substantial uplift if the lease renewed at or in excess of the old rent of £0.5m.

It will be interesting to see the financial statements tomorrow as I don't think the share price reflects the recent good news. The only possible downside I see is the interest rate swap but at least they dealt with part of that last year.

[alanji] 25/5/2012 16:23

Glasgow is completely revitalised and the building is in a good area - looks very attractive (in a modern way)

[jonwig] 25/5/2012 15:53

Lord G: I wouldn't use that turn of phrase - the SLC will be constrained to save money and neither side will be keen to lose the other.

I don't know how 'revitalised' Glasgow is, or whether it's still a byword for run-down dereliction. Putting arms of government in such places has long been policy, particularly New Labour's.

In other words, if MCKS owns property in Glasgow it will be jolly glad of the result today. And it's worth reminding that MCKS and other second-line propcos tends to operate outside the prime spots, which is why we get the discount and yield when we buy the shares.

[lord gnome] 25/5/2012 15:40

Yes - it's bad news dressed up as good. The tenant has taken them to the cleaners by the looks of things. Better than a void though.

[alanji] 25/5/2012 14:07

And with a 5 year break clause that 15 months is equivalent to a 25% reduction - probably still good news in today's market.

[stemis] 25/5/2012 14:03

In terms of the P&L the rent free period will be amortised over the new lease. They don't disclose what the existing rent will be (I'd be surprised if its less) but its a welcome securing of future income nonetheless.

[grahamburn] 25/5/2012 12:10

Technically "signed up", but more like a renewal - on a 15 month rent free sweetener.

[jonwig] 25/5/2012 11:54

Another sound tenant signed up: Student Loans Company. With a rent sweetener, naturally!

I have dealings with SLC - they have offices in Glasgow, Darlington and Northern Ireland. When our government actually does some cutting (rather than talking about it) maybe SLC could cut some slack, though Glasgow should survive.

[fhmktg] 03/5/2012 16:42

All very interesting and positive?
All coming from Perloff?
( I enjoyed reading his AGM report!)

[jonwig] 02/5/2012 11:06

Perloff/Panther is now over 4% which may be the prompt for the rise at the same time as the RNS.

A very shrewd operator, and his ramblings in the company's results are always worth reading, like last week:

[lord gnome] 01/5/2012 13:18

The market does seem to have reacted positivley to the news. For the first time since I bought into MCKS I am now actually in the black (or the blue, depending upon your colour preference).

[stemis] 01/5/2012 09:40

Will MCKS amortise the rent free period over the life of the lease?

It's a good tenant and clearly a positive move although there is no indication of yield and therefore its hard to judge if its that value enhancing.

Only comparison I can make is that in July last year MCKS let the last remaining space in 1 Castle Lane, London for £35/sq ft. This is a longer lease and works out about £34/sq ft ish.

[fhmktg] 01/5/2012 09:40

At least its a sign of some life in the market!

[jonwig] 01/5/2012 08:59

Lord G - as for the ODI, they had revenues of £17m in 2009-10 and paid rent of £0.345m with about 130 staff. (Latest accounts on website.)
Three years on, it would be interesting to see how far their revenues have expanded: probably a lot, though not doubled? Staff haven't increased by that factor anyway.

My first thought was that we'd be getting cast-iron security of income!

[fhmktg] 19/4/2012 09:20

Telegraph reports that Grosvenor Estates are moving into 'Industrial Property' - could indicate the sector is waking up....or even the sniff of a bid for MCKS?

[fhmktg] 15/3/2012 12:57

Always good to see the senior team buying shares outside their incentive schemes.
Good indicator of support for propsects - analysts please take note!

[jonwig] 09/3/2012 18:28

Follow their complaints procedure as per their T&Cs, to the letter.
Ultimately you may need to go to the financial ombudsman, but you need to go through the Selftrade hoops first.

[gingerplant] 09/3/2012 17:28

Confused!

I wrote to SelfTrade re tax credit. They said:

"Please supply the documentation that shows that it is due so that we are able to cross reference. As this was not paid previously we wold not expect to see this paid this time. "

Any ideas???

[skyship] 05/3/2012 12:31

An RNS back in Jul'11 informed us that Mr Giles Salmon would be appointed Finance Director with effect from 1st August 2011, succeeding Mr Alan Childs who would retire from the Board on the same date.

RNS today (see Header) says that Salmon has now bought 15,000 shares @ 131p.

[crawford] 03/3/2012 09:53

Very good share price appreciation here recently.

[grahamburn] 02/3/2012 08:23

Don't forget that different nominees action this procedure on (wildly?) different timescales ranging from a couple of weeks to eight weeks.