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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
  -3.00 -1.54% 192.00 187.00 193.00 195.50 187.00 195.50 60,730 16:35:16
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 29.3 9.5 8.6 22.4 180

Mckay Securities Share Discussion Threads

Showing 1226 to 1249 of 1500 messages
Chat Pages: 60  59  58  57  56  55  54  53  52  51  50  49  Older
DateSubjectAuthorDiscuss
19/7/2012
06:23
IMS: http://www.investegate.co.uk/Article.aspx?id=201207190700049635H Doesn't say a whole lot really, but what it does say is all good AFAICS. The important part: The Group remains in a sound financial position with no near term refinancing. Drawn debt increased by £5.5 million over the period to £106.0 million, due to acquisition and property expenditure, leaving the Group 99% hedged. Headroom of £49.0 million to total facilities of £155.0 million remains. Of this, approximately £4.00 million is currently identified for expenditure on portfolio properties and acquisitions. Headlines: Portfolio void reduced to 8.9% (31stMarch 2012: 13.3%), with five new tenants signed up at contracted rents totalling £976,650 pa. Refurbishment of 203 Blackfriars Road, SE1 and a pre-let to the Overseas Development Institute completed on programme. Lease extension to the Student Loans Company for 100,270 sq ft completed at 100 Bothwell Street, Glasgow. Earnings enhancing acquisition of Pinehurst Park, Farnborough. Resilient quarterly income maintained.
gingerplant
14/6/2012
12:34
Only if you know the sizes and layout and facilities. But assuming the three parts have equal size, they're going to pay £0.5m for one third, and before paid £1.29m for three thirds. To me it looks about the same - £1m for the new building plus £0.29m for the old.
jonwig
14/6/2012
08:56
is it poss to guess at the rental per sq ft for the space to be kept by IBM if they exercise their option, as compared to the rate(s) for the 2 buildings they are paying at the moment?
ursus
14/6/2012
07:03
Yes, looks a very opportunistic deal.
topvest
14/6/2012
06:27
This does look to be something of a bargain, although I wouldn't be feeling so secure right now if I was working for IBM!
lord gnome
14/6/2012
06:18
"McKAY ACQUIRES HIGH YIELDING OFFICE INVESTMENT WITH REDEVELOPMENT POTENTIAL" http://www.investegate.co.uk/Article.aspx?id=201206140700082945F Is this another goldmine? Pay £3.5m for annual rent of £0.5m from IBM after variation (14% gross yield), and be left with an empty building for residential redevelopment together with half the modern building to let at - maybe - another £0.5m. You can see the modern building on Google: GU14 7NB.
jonwig
30/5/2012
08:25
I see Standard Life Property [SLI] has bought a Glasgow property: http://www.investegate.co.uk/Article.aspx?id=201205300700073622E The rent of £17psf is below that which MCKS will collect after the break of over £19psf. The properties seem to be comparable. It looks as though MCKS have a good deal with the SLC.
jonwig
29/5/2012
21:40
Thanks for the feedback...got my Tax Voucher for last year yesterday so thought I understood this holding !
rik shaw
29/5/2012
20:38
Solid results I thought. I tend top focus on EPRA net asset value and avoid swap fair value accounting which is all a bit of a nonsense if held to maturity. Perloff has been buying and he is no muppet! May add more at some point.
topvest
29/5/2012
14:17
A REIT is required to distribute 90% of its net property income (as calculated for tax purposes deducting capital allowances etc.) within a certain period of time after the year end. They are free to pay an ordinary dividend at any point, but they need to meet the 90% test as well. Ordinary dividends do not count toward the 90% test as these need to be in the form of PIDs (property income distributions). You can see from the example of British Land that they had got ahead of their distribution obligations and paid all of the 2009/10 dividends as ordinary dividends (which they describe as non-PID). http://www.britishland.com/255-dividend-history Whenever a REIT is ahead of their PID distribution obligation then they should always pay an ordinary dividend as it benefits certain investors (unless they are worried about a future dividend cut and want to get further ahead of their PID obligations).
scburbs
29/5/2012
13:57
grahamburn - I read the REIT rules when they were introduced, and I believe they have been amended since then, which might explain it. I think what MCKS has done is to use accounting principles which don't apply to REITs, but instead of forefeiting REIT status, they can merely do an old-style dividend. Hence they don't retain all the tax advantages of REITs when they present accounts for the year just gone. But ... they probably can't do that every year. One REIT I own, TCSC, paid out a mixture of ordinary dividend and REIT, and I still haven't worked out why they should do it, but I can get to their AGM in Leeds - the MCKS in London isn't worth my while.
jonwig
29/5/2012
12:55
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
11:54
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
10:29
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
10:20
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
09:31
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
09:11
Oriel have upgraded to add, forecasting an EPRA NAV of 240p for next year.
tiltonboy
29/5/2012
08:31
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
07:58
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
07:07
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
11:02
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
10:42
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
10:24
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
15:23
Glasgow is completely revitalised and the building is in a good area - looks very attractive (in a modern way) http://tinyurl.com/csec9ya
alanji
Chat Pages: 60  59  58  57  56  55  54  53  52  51  50  49  Older
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