Picton Property Income Ld Share Discussion Threads

[lord gnome] 30/10/2013 17:53

Given also that the market will calculate that the real NAV will be greater than that published in accounts.

[red army] 30/10/2013 12:39

Just to say that given the market expectation of continued price improvements the quoted price will always move closer or above.

[kavnish] 30/10/2013 11:51

Lord Gnome : don't get me wrong am a long term property bull across my portfolio, however when the physical market is cheaper than the quoted you know which way to go.

The yield on this one is dangerous as with close to 60% leverage and still offering a pretty low number it shows you how much of the return is being eaten up in fees etc

I was extremely long PCTN for 3 -4 years nice ride , but as said physical market is cheaper .

C'est la vie

[lord gnome] 28/10/2013 17:04

Kavnish - that depends on your outlook view for property prices and your need a for a secure well-covered yield. I am bullish on the former and in need of the latter. Also, the book value is based on certain assumptions and FWIW I reckon it will be very conservative indeed given the experience of the last four years.

[carterit] 25/10/2013 14:43

Same here. I intend to be around for some time.Property crashes don't tend to come along too often. To be honest,if the shares in my property portfolio,increase year on year by approx 10% (5% capital + 5% yield),then i will be well happy to continue holding and reinvesting the dividends.So far,overall,they are comfortably exceeding this (by they,my shares are SREI,PCTN,DSC,FCRE,MCKS)

[irenekent] 24/10/2013 12:04

Not going anywhere except to buy some more.

[janeann] 22/10/2013 06:32

Im still here too, and liking the yield.

[lord gnome] 22/10/2013 06:21

More good news. Things are looking up.

[nickg2] 22/10/2013 06:06

Very nice!

[cerrito] 11/10/2013 11:59

Agree this is good news for their third largest investment..only slight downer is that have to wait til 2015 at the earliest to do the property conversion; given how hot the residential property market in C Garden is at the moment you would have thought it good to bribe existing tenants to move.
Sp increase warranted

[lord gnome] 11/10/2013 10:22

Market seems to like today's news. Still yielding over 5.5% with a quarterly divi. Happy to carry on with these.

[speedsgh] 11/10/2013 07:46

Stanford House Update -

More details with link to downloadable pdf brochure here -

[colonel a] 15/8/2013 14:26

I've sold out of a couple of similar companies recently only to watch them continue to rise.
But I agree that this is now toppy.
But so are most things with a decent yield {and I guess perceived as low risk.}

[drewz] 15/8/2013 13:46

I'm out.

It was a fine ride.

[kavnish] 15/8/2013 13:38

This one has run away from itself, however the market can stay frothy for a lot longer than anyone can think.

Certainly not for widows and orphans now , the yield play here is over and quite frankly when REIT's are at premiums to NAV most larger investors just think , why not pop along to the auction and pick up the real thing. Much better return and no management fees.

E.g spend a million on a shop with 15 year lease, will yield 6% . Load up with 50% debt ( still less than PCTN) and your cash yield moves upto 7% plus , why would you then buy this asset at sub 6%

But anyway , it was a lovely ride whilst the market figured it out . Now time to move on and let the retail boys have a play.

[lord gnome] 14/8/2013 06:39

If interest rates are staying low for a few years, a share which still yields the thicker part of 6% and pays out on a quarterly basis is going to be in demand from income seekers. Divi fully covered, asset backed and the economy in recovery mode with property price edging higher. What's not to like? Especially if you loaded up at 36 / 37p. Please excuse me for having a 'smug git' moment.

[mozy123] 13/8/2013 21:40

Makes you see the value there is DSC and APT hey sky? :)

[this_is_me] 13/8/2013 19:49

At this rate we will soon be at a 5 year high. I bought this for income at the start of the year. The capital gain is a nice bonus.

[skinny] 13/8/2013 15:25

These have certainly got away from me for now!

[elmfield] 13/8/2013 15:22

..? Like the old days again?

[skyship] 13/8/2013 15:19

Strewth - 52p on the back of a Winterflood tip in IC online.

Summary following a Leonora Walters article:

"Because of the risks associated with commercial property, in particular liquidity problems, Ms Heyman suggests investors do not put more than around 5 per cent of their assets in, although they could consider a bit more if they have a particular need for income. Mr Port suggests adventurous investors could allocate 7 to 8 per cent.

Ms Heyman says it is very important to look at the type of property a fund holds. She prefers ones diversified across sectors, though likes ones with more exposure to warehouses than shops because as consumers increasingly shop online more is stored in warehouses while high street shops do less well. She also says quality of holdings is important and suggests you invest in more than one fund.

Analysts at broker Winterflood suggest IC Top 100 Fund Picton Property Income (PCTN) which offers a 5.88 per cent yield and trades at relatively modest premium to NAV of 3.85 per cent, in contrast to its peers. Winterflood says the trust's net loan to value ratio of 54.1 per cent makes it riskier than its more lowly geared peers, but that it continues to benefit from relatively inexpensive and long-term debt, and has reasonable headroom against debt covenants."

[cerrito] 24/7/2013 08:37

Good to see reduction-however small-in voids and there seems to be quite a lot of letting activity so we should see a further reduction in voids this quarter.
Looking at the changes in the NAV the very small increase due to retained income and note further decline-albeit very very small-in property valuations.
For me nothing to get too excited about either way.

[kavnish] 15/7/2013 19:22

Looking for the re entry point just had a nibble at glen core