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Share Name Share Symbol Market Type Share ISIN Share Description
Mckay Securities Plc LSE:MCKS London Ordinary Share GB0005522007 ORD 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.50 -0.29% 169.50 162.00 170.00 169.50 169.50 169.50 5,960 16:28:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 25.3 13.2 14.0 12.1 159

Mckay Securities Share Discussion Threads

Showing 1226 to 1250 of 1475 messages
Chat Pages: 59  58  57  56  55  54  53  52  51  50  49  48  Older
DateSubjectAuthorDiscuss
29/5/2012
13:55
rik. Not sure whether you've read the results statement or the earlier discussion (posts 597 and 599). The statement said: "Having taken into account the continued progress of the Group, the Board is recommending that the final dividend is increased by 1.8% to 5.7 pence per share (2011: 5.6 pence). This will all be paid as a normal dividend rather than a Property Income Distribution (PID). This will take the total dividend for the year to 8.4 pence per share (2011: 8.3 pence)." This is a touch ambiguous, especially as noted earlier, a REIT is required to distribute its income as a PID, but guess there is some leeway re: capital allowances and interest rate swap adjustments which permits a standard dividend rather than a PID. Sure someone on here can resolve/explain better, but my interpretation is that as a standard dividend, there should a tax credit attached to it, rather than a withholding tax.
grahamburn
29/5/2012
12:54
My understanding is that this is a Property Income Distribution not a Dividend in terms of tax hence the 20% tax withheld and this is linked to the REIT being tax exempt in respect of capital gains and all qualifying rental income. This is non manipulation it is the nature of REITs. See: http://www.londonstockexchange.com/specialist-issuers/reits/reits.htm
rik shaw
29/5/2012
11:29
Well, technically, it's not "gross" this year as there'll be the standard tax credit of 10% which is non-reclaimable. But it's still an increased payable dividend (albeit of 0.1p).
grahamburn
29/5/2012
11:20
scburbs - yes, thanks - I read it wrongly. Last year I received 6.64p plus 1.66p tax reclaim within ISA, ie. 8.3p. This year I'll have 8.4p net and gross.
jonwig
29/5/2012
10:31
Take care here on the NAV. EPRA NAV should be handled with care as the control over holding swaps to maturity is not with MCKS and they are so long dated. Hopefully interest rates come 2016/17 will mean that basic NAV will have increased by then. "The swaps mature over the next 27 years and have swap rates ranging from 3.00% to 5.17%. Provision is made within the terms of the financial instruments for the counterparty bank to terminate the instruments by invoking credit breaks in 2016/2017. If such a credit break were exercised, a payment would be made between the parties dependent on market value at that time. The instruments also provide the counterparty bank with additional break options from 2014. Should these breaks be exercised, there would be no payment liability on the Group." http://www.investegate.co.uk/Article.aspx?id=201205290700082505E Jonwig, I think the dividend change should be beneficial to a tax paying investor and neutral to a tax exempt investor. I assume the 5.6p per share is quoted gross of withholding taxes (i.e. this is what you actually received last year after any refunds of withholding taxes?) and this year you will receive 5.7p per share (quoted net of tax credit, but with no withholding tax).
scburbs
29/5/2012
10:11
Oriel have upgraded to add, forecasting an EPRA NAV of 240p for next year.
tiltonboy
29/5/2012
09:31
I must admit to being puzzled (and not a little annoyed) by these: Having taken into account the continued progress of the Group, the Board is recommending that the final dividend is increased by 1.8% to 5.7 pence per share (2011: 5.6 pence). This will all be paid as a normal dividend rather than a Property Income Distribution (PID). This will take the total dividend for the year to 8.4 pence per share (2011: 8.3 pence). and ... As a REIT, the Group is tax exempt in respect of capital gains and all qualifying rental income, which includes the majority of the Group's activities. There is therefore no tax charge and any residual income has been offset by relevant costs. The Group is required to distribute at least 90% of rental income profits arising each financial year by way of a Property Income Distribution (PID). Subject to exemptions, this is paid after deduction of withholding tax, at present 20%. Taking into account the benefit of considerable capital allowances and the termination cost of the interest rate hedging instruments in the year to March 2011, the final dividend to be paid in August 2012 will be paid as an ordinary dividend rather than a PID. They seem to have manipulated their accounts to minimise total tax payments, at the expense of their shareholders. If this benefits me in future years I won't complain, but meanwhile my dividend is about 20% reduced.
jonwig
29/5/2012
08:58
Results seem okay:- NAV/share up from 161p at the interim to 162p (EPRA nav/share up from 224p to 229p) Final dividend up 1.8% to 5.7p (total up 1.2% to 8.4p). Yield is now 6.1%. LTV 47.0% from 47.2% at the interim. Steady as she goes with some positives for next year. Not sure if market was expecting better?
stemis
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.
jimbo3352
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. http://www.antimoon.com/forum/t2933.htm I used to live 15 miles from Glasgow and went to university there but a good few years since I visited.
alanji
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?
jonwig
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.
jimbo3352
25/5/2012
16:23
Glasgow is completely revitalised and the building is in a good area - looks very attractive (in a modern way) http://tinyurl.com/csec9ya
alanji
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.
jonwig
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.
lord gnome
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.
alanji
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.
stemis
25/5/2012
12:10
Technically "signed up", but more like a renewal - on a 15 month rent free sweetener.
grahamburn
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.
jonwig
03/5/2012
16:42
All very interesting and positive? All coming from Perloff? ( I enjoyed reading his AGM report!)
fhmktg
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: http://www.investegate.co.uk/Article.aspx?id=201204250700109259B
jonwig
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).
lord gnome
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.
stemis
01/5/2012
09:40
At least its a sign of some life in the market!
fhmktg
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!
jonwig
Chat Pages: 59  58  57  56  55  54  53  52  51  50  49  48  Older
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