Mckay Securities Share Discussion Threads

[essentialinvestor] 24/9/2020 15:18

Sold on the spike, best of luck to holders.

Possibility of corporate action for those holding.

[skyship] 17/9/2020 09:43

Ebb - no, just put aside pre-conceived notions on the valuation of conventional trading companies. When investing in investment companies such as investment trusts and propcos, asset backing is paramount, not earnings per se.

So, read the CP+ thread and by reading propco end of year results and Annual Reports, familiarise yourself with all of those elements in my 842 above.

Property too important a sector to discard - though I suspect you weren't serious in that regard. Good luck...

[budsman] 17/9/2020 09:10

And some director buys - albeit quite small

[essentialinvestor] 15/9/2020 16:34

Thames River Capital increasing.


If we do get any wider equity market volatility, this is right
at the top of my buy list. Hold only a small amount atm, unfortunately!.

[eggbaconandbubble] 15/9/2020 14:18

So if MCKS were £10 i.e. PE = 100 - they wouldn't be overpriced?

Maybe I'll steer clear of REITS and stick to my knitting!

[skyship] 15/9/2020 13:19

PE ratio has nothing to do with valuing propcos:

# NAV discount
# Yield
# Divi cover
# LTV
# Debt cost
# WAULT
# Sector analysis
# Geographic analysis
# Tenant spread

PER - doesn't feature!

[eggbaconandbubble] 15/9/2020 13:13

Dunno! You tell me.

My understanding of PE ratios are, that they are a very relevant measure of whether a share, based on its price, is over or under valued.

I stand to be corrected on that one!

[essentialinvestor] 15/9/2020 11:45

What does PE ratio have to do with commercial property investment?.

NAV plus yield.

[eggbaconandbubble] 15/9/2020 11:42

I've had these on the radar since selling a wodge sometime ago. I think my reasoning was that they weren't going anywhere fast.

With today's news I took a look again but the PE. ratio.......!

Why is it so high?

[essentialinvestor] 15/9/2020 09:42

Theale let, Lombard St sold, coupled with the recent Thames Valley logistics acquisition.

They are on a bit of a roll.

Lombard St sale significantly reduces their exposure to central London.

[eggbaconandbubble] 15/9/2020 07:43

Oooops nickrl! Spoke too soon. We've all done it before! :-)

[skyship] 15/9/2020 07:17

McKAY UNLOCKS SUBSTANTIAL REVERSION WITH LETTING OF THEALE LOGISTICS DEVELOPMENT

[skyship] 14/9/2020 17:37

Thnx to EI for posting this news on the RGL thread. A bullish Office transaction:

[nickrl] 22/8/2020 22:42

EI logistics is supposed to be where all the action is - clearly not in Theale

[essentialinvestor] 21/8/2020 22:32

Theal Logistics Park still has no takers.

That's a big asset standing vacant for about 6 months now,

not helped by the lockdown.

[essentialinvestor] 17/8/2020 16:48

MCKS have stated to buy property already, before that large conditional
sale completes as well. Surprising?.

[nickrl] 07/4/2020 11:52

MCKS C19 update today.

Say 65% of rent has been paid but does include that which has been moved to monthly and they dont disclose that percentage, 11% is subject to agreed deferred payment plans. Perhaps more illuminating of issues ahead is the statement " 13% of rent due is in advanced discussions with two of our larger occupiers, and a further 7% is under discussion with others. The remaining 4% is due from eight occupiers who we've been unable to contact so far (umm!!!).

30 Lombard St sale further delayed to Q3 due to needing to satisfying outstanding highway matters. Not sure if this is a City of London or TfL issue but given sale is conditional upon it could be a risk the buyer could have an exit strategy if it drags on?

No debt due to 2024 so are in a reasonable position and if Lombard St falls through it provides an income stream of 3.4m pa.

[skyship] 26/3/2020 14:12

Of all the propcos MCKS was the last to wake up to what was going on elsewhere in the sector; then suddenly on 16/17 March it crashed 46%!

With no retail and a portfolio of class assets across the South East, it now looks rather cheap, especially if their sale of the Lombard St. property in The City proceeds as planned; and there looks to be no reason for it not to do so.



That sale will substantially reduce their LTV which is currently a little too high at 34%.

The spread is usually too high; but still at 158.5p I reckon there could be a c15%-20% bounce to play for...

[nickrl] 24/3/2020 15:41

Sky my take is the shorters were looking for anything that was lagging behind the general drop and just targeting them indiscriminately as it was one way bet as they weren't the only share that lagged behind initially. They have no retail but not sure that means the rents will still come in but ought to be better protected this quarter but they wont be immune to rent reductions as almost every business will need to cut costs to stay afloat. I had these on my radar for a while then they spiked up and i also felt exec pay was high along with generous options albeit there under water now so will now revaluate.

[skyship] 24/3/2020 14:25

Well, sadly no sooner had the ink dried on nick's post than the dam wall well and truly broke here. 260p on the 15th, then down precipitously 46% to 140p on the 18th!

Ship slightly steadied at 160p; but what caused the sudden sell-off. Has the Lombard St. sale fallen through?

[nickrl] 15/3/2020 20:47

Sky these have held up remarkably well against virtually all its peer group over the last couple of weeks still only yielding 4.1%. Im surmising that this in part is perhaps due to the fact that LTV should drop considerably when the sale they've agreed on there prime asset 30 Lombard St is completed. Issue is that has some caveats and its yet to be completed and in the trading update this was expected in Q2/20. This is worth c10% off the current LTV of 34.6%.

[skyship] 28/2/2020 14:52

A well manged and conservative outfit, but the share price remarkably resilient against the tide. Sure a 22% discount; but the 3.8% yield is parsimonious to say the least, so would expect these to sell off from current levels.

[eggbaconandbubble] 27/2/2020 07:34

Trading update - Looks all good!

I may well have to eat my words about Coronavirus! Oooops!

[petewy] 28/1/2020 09:59

Any reasons for the drop.