Mountview Estates Share Discussion Threads

[greatgiginthesky] 26/11/2015 11:57

Yup, looks a fair bet that the full year divi will total 300p giving a 9.1% increase, which is about as good as it gets for dividend growth from MTVW. I don't mind them hanging on to earnings as they invest them wisely and compounding future profits keeps the share price ticking up nicely. I will probably still have these shares in 25 years time.

[jonwig] 26/11/2015 08:50

Comment on the results:

[jonwig] 26/11/2015 07:54

Papy - thanks for point made above: I was wondering myself!

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The new director is family (family out, family in) and his three letters are medical degrees. So "brings with him a skill set that will complement the Board" sounds a bit strange to my ear.

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Interim results can almost pass without comment.
Dividends: last year we had 100p + 175p. This year they front-load it with 200p + ... (I'd think 100p at least, giving a yield of 2.7%.)

[papy02] 25/11/2015 22:32

DDA,

from

The higher rates will not apply to ... corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda.

The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.

[dandanactionman] 25/11/2015 21:03

Any thoughts on the effect of the stamp duty changes?Will this have either a direct or indirect effect on mountain viewI am unsure myself if or how this applies to companies.

[eggbaconandbubble] 24/11/2015 17:39

Interims usually last Thurs in November!

[greatgiginthesky] 06/11/2015 15:38

Interims due later this month. Here's hoping for a bump in the divi - 125p would be nice.

[eggbaconandbubble] 03/11/2015 07:50

Certainly did!

[jonwig] 03/11/2015 07:28

HtH - will that do?

[eggbaconandbubble] 02/11/2015 22:45

No comment since end of August! Anyone care to have a go?

[brahmsnliszt] 25/8/2015 16:02

Lost patience here though managed to get 11810 for my token 30 shares today.

[jonwig] 21/8/2015 09:03

I went up for the AGM on Wednesday, which turned out to be rather less eventful than last year's.

• I had prepared a question based on the profile of RT aquisitions over the past three years:

2013: 200 costing £23.01m, average £0.14m
2014: 152 ....... £23.01m, ....... £0.15m
2015: 33 ........ £13.76m, ....... £0.42m

strongly suggesting that RT acquisitions were getting harder (as admitted) and a lot more expensive, which might be a big drag on future margins.
I didn't need to ask it, as the CEO gave an outline of the need for new ideas, some of which might involve new forms of affordable rent schemes.

• Last year, the chairman (Fulton) suggested that revaluation of the trading properties would become an annual event. This must have been off the top of his head, as the CEO was quite firm in saying that this would not happen, as it cost £0.5m (!) and would not produce meaningful year-on-year changes. Also, by implication, "You want your dividends, don't you?"
This was probably a contributory factor in the chairman leaving, together with the impression that he could not manage the potential (actual?) conflicts within the concert party and certainly struggled to control awkward shareholders last year!
The new chairman (Solway) was much more assured. His recent background is in fund management. Although new to the company, he knew his company law, and formal procedure.

• The CEO gave us a bit of company history, Two founders, Four children and now Fourteen grandchildren, and the associated long-term security of returns which they wanted to achieve. In other words, no fancy City-inspired financial wizardry! Monday's RNS wasn't mentioned - I'm sure it was merely a technicality.

I decided afterwards (and spoke with a few people) that this was now a pretty secure 'hold' until some new long-term strategies emerge. If there's no indication of these in the next twelve months, I might reduce my holding.

[catsick] 17/8/2015 16:58

Nothing has happened the trustee has been changed and as the legal owner that means the ownership has changed but the benificiary being the lucky kids of the sinclairs remains the same, Not much going on here but its a solid hold for the next 10 years .....

[eggbaconandbubble] 17/8/2015 15:50

Two RNS's 'Retirement of Trustee'. Anyone know what that's all about?
If nothing else it's a lot of shares/money involved - £36m odd!

[greatgiginthesky] 07/8/2015 16:56

Would you rather buy with an 8% rental yield and 2% capital appreciation or 2% rental yield and 8% capital appreciation?

egg, I think I once saw in one of those self-help books at an airport that the truly wealthy never ever sell assets. For mugs like me I have to resort to only ever regarding my worth on an 'after CGT' basis. I find that helps.

[eggbaconandbubble] 07/8/2015 15:50

Because rents in London are so high compared to wages, one bed units are becoming a problem in a much as they are usually only affordable to a couple and in my experience couples make babies and when they do they soon decide to move on for more space. Thus long term tenants for such are becoming harder to find.

On a more amusing note I asked retired ex tax inspector matey about how to avoid the CGT issue on finally selling. I had the idea that houseboats would count as a wasting asset. No luck there. He suggested caravans (with wheels!). Just imagine siting a few of those in the squares of SW7!

[brahmsnliszt] 07/8/2015 15:17

Don't quite agree with you there.If rental yields now are low compared to initial cost then that means one of two things. Either rents are too low and need to drastically rise or that initial property cost is too high. We could of course keep the status quo. I can't really see rents increasing too much in low to medium cost housing as household budgets are squeezed as they are and you'll be biting off the hand that feeds you.Against that, yields could just carry on decreasing as rents remain the same and property keeps rising. Just my opinion of course.I've only increased rent once in the last six years. Have a decent tenant, pays on time and for me yield is fine.

[greatgiginthesky] 07/8/2015 10:26

Brahms, I am no property expert, but I always thought that returns are measured upon the total return (rent plus capital sale proceeds) versus initial cost. Therefore, a low initial rental yield upon purchase indicates a market expectation of good future capital growth compared with a high rental yield indicating a lower expected growth in capital.
Of course, if one believes that there is little growth left in valuations, then yes, the low rental yields of today will be shown to have been false. I agree with you there.

[brahmsnliszt] 06/8/2015 20:11

Wasn't directing that at you gg, nor meant to refer about a mortgage.The annual rental returns against the value of a typical greater London flat for instance just doesn't add up at current valuations. Mortgage or not.

[greatgiginthesky] 06/8/2015 14:16

Brahms, I can't help you there, because I don't have a mortgage. Manage the flat and get tenants myself and the net yield was 5.66% from day 1.

[brahmsnliszt] 05/8/2015 21:40

GreatgigI'm not questioning the capital appreciation on London property over the last year , let alone 12, I just can't see how rental returns cover a mortgage, let alone give one a return.

[greatgiginthesky] 05/8/2015 18:45

Brahms, my BTL is in London near a new Crossrail station and has been amongst my best investment returns over 3 years. Recently re-let at a higher rent there is still huge rental demand for good properties. If I could recommend one location to buy/rent it would be Sydney harbour. Pure magic. Dream on.

[eggbaconandbubble] 05/8/2015 14:21

Brahms, one thing that has become very apparent to me selling properties over the last two or three years is that the solicitors for the vendors, banks, building soc.s etc. are getting a whole lot more picky. The number of boxes to be ticked and questions answered has increased alarmingly!

[brahmsnliszt] 04/8/2015 12:48

Agree eggI've had mine since 2001. Capital appreciation was secondary to decent returns at the time.To invest now? People must be mad in London.