Mountview Estates Share Discussion Threads

[jonwig] 15/6/2023 14:57

Mmm, could be, but these are described as long term borrowings, so shareholders should know about the terms. The company doesn't seem to have anything much under short-term - ie. overdraft or other facilities.

[nk104] 15/6/2023 14:17

Could it be connected to this statement

'I always emphasize that making the right purchases is the most important part of the business and our financial stability has enabled us to make substantial new purchases (up from GBP12.5million to GBP52.6million). These purchases underpin the future of the Company and will ensure future profits.'

[jonwig] 15/6/2023 12:38

The results look pretty good, with dividends holding up.

But what's this with the long term borrowings of £56.7m against £28.7m at half time and £19.2m a year ago? I don't remember things being said, let alone the rates charged.

[jonwig] 19/1/2023 15:51

Talisman now up from 6.26% to 7.13%.

[essentialinvestor] 01/12/2022 15:37

Konrad, David Gladman increasing at BOOT.

Hope to pick up some under £2.20 on a bad day, may not happen.

[strathroyal] 25/11/2022 17:19

Yes, excellent results, followed by a significant share turnover (for MTVW of course).

[jonwig] 24/11/2022 09:45

Interims:



Great stuff, big recovery. Dividend 500p (250 + 250 special). Timing was lucky, 30 Sept just before the knockout blow.

[konradpuss] 16/11/2022 21:07

Essential, they missed an earnings forecast and were well punished.

They buy build and sell and retain some management. It's a risky business theirs.

Not were I would be. Unite and the other quoted PBSA provider I can think of are not cheap when I last looked.

It's an asset class that is now becoming firmly established and insitutional.

[essentialinvestor] 16/11/2022 20:56

Konrad - take a look at Watkin Jones!!. They were building on spec tbf.


This is your area so would defer to your judgement.

[konradpuss] 16/11/2022 20:47

Essential, I think the only place to be in property right now is student housing.

The best quoted student housing co. got taken out by Blackstone last year unfortunately.

The occupancy rates are excellent and yields have only moved out slightly of late.

I still like Mountview for a long term play on a sale.

[essentialinvestor] 16/11/2022 20:36

There's more movement in a funeral parlour than in the share price atm.


Konrad, I like BOOT, but there may be a better price available before
the start of the next cycle (barring corporate action in the interim).

[konradpuss] 16/11/2022 20:22

twells, I am not sure why the concert party has been disbanded.

Perhaps there is a disagreement in respect of the forward direction of the company. Perhaps some want to sell to Peers and others do not.

My guess in respect of the other side of the family i.e. the Murphys is that they would sell at the right price. Just my humble opinion.

[jonwig] 16/11/2022 09:34

twells - the doings of the Concert Party are a mystery to me. Konrad is much more able to clarify.

Ads for "true valuation" of the properties, and "true" NAV, they performed this in (I think) 2015, and I was at the AGM following this. I think one section ofthe Concert Party requested it as there was talk at the time of Grainger being a bidder.

the then Chairman was asked if it would be a regular exercise. He said yes - rather unwisely as it had been very expensive (over £1mn?). He was sacked not long after.

Konrad has said he thinks the company will be sold. I've no reason to doubt that.

As for IC, I think they write more articles than they can publish. Some get slipped in when there's surplus space.

[twells1] 16/11/2022 09:13

I would be very interested in Jonwig or Konrad's view on the announcement of Mountview on November 14th that the concert party has been disbanded. Does that mean the family is further split? What are the implications of the ending of the concert party?

You will have seen the Investors Chronicle long article on Mountview. It is very suprising considering that Mountview is a small company with very few non family shareholders for there to be such a lengthy article. Who provided the information for the article. I noted in the article the comment on the extraordinary level of remuneration of the CEO for such a modest company and who is also very incentivised by his large shareholding.

I appreciate that a valuation of the assets would be of no benefit to the company who buy and hold assets until the property is empty but it would be of benefit to shareholders of what is a PUBLIC company in allowing investors and shareholders to have some idea of the real value of the assets. We also have no idea of the succession policy of the company which considering the age and shareholding of the CEO is of importance.

It is inevitable that Talisman will eventually buy out both the Sinclair and Murphy families but at what price and when?

[essentialinvestor] 12/11/2022 15:23

Konrad, added a few MTVW during the week as unlike many other businesses
there has been no share price bounce over the last few weeks.

I also created a new YNGN (Young's non voting) board, with YNGN currently
available on just 10 X forward earnings and at 50% below NAV.
Young's H1 results this week are stellar.

[konradpuss] 11/11/2022 20:05

Essential, I bet Mountview will be making some good purchases right now.

Am I still keen? Yes, although I think the share price will only fully reflect the assets when the two waring sides put down their weapons and sell to the William Peers Group.

When will that be? Well Duncan (CEO) is getting on and I bet he would like to sell on retirement.

Just my humble opinion.

[essentialinvestor] 11/11/2022 11:32

Konrad, are you still keen on MTVW?, thanks.

You seen the GPE share price lately ? - that was selling for a song a few weeks back.

[jonwig] 11/11/2022 07:35

How rare is this? An IC article about MTVW, and quite a long one.
But it has little to say about the company as an investment, and there's no recommendation.

It does have a lot to say about corporate governance and the history of the disputes, such as here:

The Sinclair family owns just over half the shares, and this ‘concert party’ is represented by one non-executive director. The other two non-execs were considered to be independent when they were appointed a few years ago. The Murphy family would like to have their own director on the board as well, for they hold another quarter of Mountview’s shares, which are mostly owned by Duncan Sinclair’s sister. But their attempts to have one appointed have so far been frustrated.

The dispute is really about the power resting with Duncan Sinclair and how much scrutiny he comes under. He receives about £1mn a year, and pay has become a rumbling issue. It costs £2mn to employ both him and Bray, compared with £2.5mn for the other 24 employees. That seems high for a £450mn company with an operating profit that’s fallen to less than £35mn a year.

[strathroyal] 06/11/2022 21:55

I notice that they are still finding portfolios to buy:

hxxps://europe-re.com/mountview-estates-acquires-uk-resi-portfolio-for-12-3m/70611

[konradpuss] 06/11/2022 20:56

Jonwig, agreed, it is implicit in the value of each house or flat.

I am aware of one commercial property which is a shop in the King's Road in Chelsea below some flats.

[jonwig] 06/11/2022 20:13

Investment properties total less than 5% of assets. I can't find any which are described as commercial.

The portfolio values will be affected by the implied cost of refurbishment, either by MTVW of a purchaser. The 2022 AR says this (page 25):

We have obtained an Energy Performance Certificate
(E.P.C.), or have valid exemptions for 91.4% of properties
in our portfolio with 6.6% awaiting re-test and 2.0% yet
to review due to access issues. Following these reviews,
we have undertaken, where necessary, loft insulation,
cavity wall insulation, provision for storage heaters and
dual plate power meters.

Not really helpful!

[strathroyal] 06/11/2022 17:40

So the vast majority of the portfolio is residential and won't be affected until 2028, is that the final verdict here?

[konradpuss] 05/11/2022 21:13

There are residential rules in respect of EPC's and commercial rules which are different

Mountview owns only a few commercial properties held as investments.

[jonwig] 05/11/2022 15:50

Surely they are residential. The fact that the landlord is a corporate isn't relevant to this aspect. The £3,000 cap exemption is valuable.

[twells1] 05/11/2022 15:23

thank you Jonrig for giving the facts. I have tried to improve a let Victorian residential property from a D to a C and it is virtually impossible. Involves moving the stair case to provide internal wall insulation and new kitchen etc plus rewire the house. Not a question of cost but practicality and of course tenant would need to move out ( where to?) when this was being done

I question whether Mountview's properties are commercial - they are residential??

Perhaps a question to the CEO of Mountview is in order
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