Mountview Estates Share Discussion Threads

[topvest] 28/7/2013 10:55

Yes, I've read the Annual Report. Not enormously transparent, but they keep delivering. It's amazing that they can continue to buy significant numbers of regulated tenancies as there can't be that many left to buy. The business must have a finite life, given there have been no new ones for circa. 25 years. However, on current run rates it looks like they have a great business on these for 10-20 years. I suspect sales will start to accelerate as the older residents increase in age. Presumably, they will switch more into life tenancies at some point. I prefer Daejan Holdings, but this is a really good stock to hold as well.

[jonwig] 27/7/2013 06:59

Bisi - they give information on the properties in the Annual Report, review of operations. (See header for website.)

They don't give the average holding time.

The main portfolio is regulated tenancies, which numbered 2251 units in 2010, 2250 in 2011 and 2591 in 2012.
From this, though, you can't deduce anything about holding period, as there are both sales and purchases.
However, unit costs seem to be fairly constant at £0.103 to 0.106m each.

In Note 4 to the accounts you are given number of units sold (2012: 137 for £27.8m, so that's a 100% gross margin, roughly).

Of course, a unit could be a flat in a block and a sale would be made once they had a whole block.

The 2013 AR is just out - I've not had chance to read it yet. The AGM is on 14 August - they should give a (very) brief statement then.

[bisiboy] 26/7/2013 18:27

any one have aview on NAV.
300M of properties classed as stock held at lower of cost.
what is the average holding length?
could there be lots of upside to nav

[topvest] 27/6/2013 11:48

Great company this and Daejan. Always steady performers despite a very difficult economy.

[jonwig] 27/6/2013 07:29

Final results:



Dividend sees first rise for a while, up 10p to 125p, making total 175p. Stingy, really!

As usual, no detail at all, but I see an increase in NAV mostly due to trading properties. They ought to explain this, since total debt is about static.

[russman] 09/4/2013 00:19

Gross rental yield is more than 10%, net yield approx 6%. If they can sell a vacant property at twice cost after 10 years, the net assets should motor.

[topvest] 05/4/2013 19:08

Yes, good solid company this one. Like Daejan in many ways, but nice ones to hold long term and yield a steady return.

[jonwig] 05/4/2013 12:11

Tipped again by Investors' Chronicle.
Subscription article, but concludes:

The shares' discount to book value stems from family control of the company, which makes the stock illiquid. That discount won't close any time soon, yet it offers patient investors the chance to buy into a tried-and-tested profits stream at a bargain price. Buy.



Nothing new in the article, but it makes the point (made here before) that the NAV understates the true position, as trading properties are booked at the lower of cost and current valuation.

[jonwig] 12/2/2013 13:52

The explanation for today:

[jonwig] 12/2/2013 09:23

Another strong trading update yesterday, with a rise following, and a stronger rise today.

They are clearly a niche operator with some skill and a rating to match. Might shareholders get a dividend rise after years of little change?

The third quarter of our financial year has shown the same solid progress as the first six months. Sales revenue and rental income have continued strongly and earnings are up by over 25% compared with last year. Debt continues to be reduced and so the Company is well placed to take advantage of any good purchasing opportunities.

[russman] 02/12/2012 15:37

I remember when this company used to trade at a premium to Net Assets.

[topvest] 01/12/2012 17:59

Great company this. A good steady value play.

[jonwig] 01/12/2012 08:10

Outstanding H1 results on Thursday, even though this was flagged in the earlier IMS:

Turnover up 22% to £25.9m (Half year ended 30.09.2011 - £21.2m)

Gross profit up 18% to £15.4m (Half year ended 30.09.2011 - £13.0m)

Profit before tax up 22% to £11.9m (Half year ended 30.09.2011 - £9.7m)

Earnings per share (pence) up 25% to 245.4p (Half year ended 30.09.2011 - 196.3p)

Net assets per share up 7% to £59.71 (Half year ended 30.09.2011 - £55.93)

Interim divi held at 50p - stingy as always - but final to be reviewed at FY.
Most of the 254.4p eps is income, not revaluation and total divis tend to be 3x covered, suggesting 170p (last year, 165p).

Discount to NAV about 22% which is even more unfair, since most of the assets (£316m) are trading properties, valued at lower of cost and current value. Even just a 5% uplift in these would increase NAV to £64 per share.

[jonwig] 15/8/2012 07:13

AGM today.
Statement includes:

Revenue for the first three months is up by over 36% compared to the same period last year and represents nearly a third of last year's total revenue. Gross profit is also up by over 32% and represents over 30% of last year's total.

Earnings per share are up by over 42% over the corresponding period last year.

... but cautious (as always) for the full year.

[jonwig] 17/7/2012 08:16

Well, 4145p was too good to resist, and there's a reasonable chance it will drop less than 115p on tomorrow's ex-div.

Demographics of London (after yesterday's census details) suggest they will generate lots of business over the coming years.

[jonwig] 10/7/2012 16:42

Not *much* selling, troll, but it was always thinly traded.

On past form it should go below 4000, but it's looking attractive now.

[the troll] 06/7/2012 18:36

O K, who's selling ( & why ) ?

[the troll] 06/5/2011 10:34

O K, who's buying ( & why ) ?

[the other kevin] 16/1/2011 15:07

jonwig: Apologies for not replying sooner but I've been away. As well as the link you found, it was also tipped on the Champion Shares paid-for site and I'm pretty sure a lot of those small buys were coming after that recommendation.

[jonwig] 13/1/2011 09:08

Here it is:



Though just how such an article can move the share price beats me. More likely there's another reason.

[jonwig] 12/1/2011 14:03

Kev - can't find it (although I'm a TMF member). Is it on a paid-for bit? Have you a link?

Should have an IMS end-Feb. The main interest here is what's not on the balance sheet face!

[the other kevin] 12/1/2011 11:12

Little spike today following TMF tip yesterday

[jonwig] 30/11/2010 09:45

H1 results out at 9:00am - nearly missed them. Earnings rather flat after the Q1 uplift when profits were 37% ahead for the quarter. I suppose that simply compares a weak quarter in 2009.

And you could never accuse them of waffle!

[tiresias2] 03/11/2010 14:12

jonwig and topvest i would agree on DJAN the £1.15b of investment properties are valued on a 7.4% gross rental yield which is good for a collection of largely prime food retail and residential/office assets. the only gripe i would say is the £55.9m of property operating expenses which feels high at 4.8% of gross assets

[topvest] 28/10/2010 21:19

Precisely - a well run company, with hidden value. DJAN and this are excellent long term investments imo.