Sdic Power Discussion Threads

[w1ndjammer] 17/3/2010 11:54

davidosh

sorry thought you were up to speed with this group of companys,
that was from 12 months back, since then things have improved
over at SYG ,just not yet reflected in the share price which is why imho
it is undervalued.

in answer to your question
was just illustrating why Jim hasn`t been buying.

WJ.

[scburbs] 17/3/2010 11:35

WJ, I am down, but it was only a small investment until the recent news broke. Happily the last year or so has been very good to those investing in property companies so no real concerns over SDIC losses.

I have significantly increased my position at or around the current price (hence the increase in my research posts!), so if it falls much from here then I will indeed be well down! Equally if it rises then I will be well up.

[davidosh] 17/3/2010 11:34

Jim ownes 43% of SYG he needs to keep the playing field even
so can`t buy anymore, which is why he said if more shares are issued
all shareholders can take part. WJ.


Yikes....so now you are suggesting they may need a placing !!

[crawford] 17/3/2010 11:29

lagosboy,
why do you keep repeating the same posts?

It's starting to get boring.

[w1ndjammer] 17/3/2010 11:27

davidosh

Jim ownes 43% of SYG he needs to keep the playing field even
so can`t buy anymore, which is why he said if more shares are issued
all shareholders can take part.

WJ.

[lagosboy] 17/3/2010 11:20

Look, JM set up the structure of a Property Fund (SDIC) and a manager (SYG).The fees, structure were all disclosed.

Everyone new that when they invested, now everyone is trying to blame that structure.

JM invested heavily in both companies, and I would suggest everyone of us would have done the same.

SYG is highly dependent upon SDIC good performance as it fee is based upon the NAV, which has been falling. It has yet to earn any performance fees, as far as I know, as the targets have not been reached.

It seems to me that the refurb has not added value, nor will it because it is really an ongoing repairs and maintenance program which is required just to keep these very old properties habitable.

The coldest winter in 30 years must have caused problems at the ground level and I would suspect, leaks, burst pipes, poor heating systems will have caused both higher vacancy rates and bad debts.

My view is,SDIC has very old poor quality properties being very badly managed.

The concept was, buy old properties because they are 40% cheaper than the build cost of a new property. Refurb to equivalent of a new property at less than the 40% discount and hey presto, capital appreciation and higher rentals.

This has not happened. I look for a suitor that will see the discount attractive enough to take this on. Selling piecemeal only helps the banks not the shareholders.

[w1ndjammer] 17/3/2010 11:18

scburbs
far enough havn`t come for an argument with you,
if you are on SB`s you must be well down,
i prefere real money, so imho follow the profit with SYG
100% upside

WJ.

[davidosh] 17/3/2010 11:17

Windjammer.....Answer me this if you can

If SYG is the real play why on earth has JM been so heavily buying SDIC in the last few months but not your beloved SYG ?? He is the man in the key position and really should know.

If SYG is such a good investment why has it fallen by 50% in the first three months of this year ?

Why does nobody ever post on the SYG BB to show their confidence indeed to the contrary the last post six months ago stated....

'Its not really panned out as it should have. Took my losses a long time ago after management decided to screw shareholders over with their bonus scheme. Nothing in the results to really excite. Speymill contracts still a huge liability which dwarfs anything good in the company. Not sure why management don't delist.'

I think you are pretty much alone in your thinking and it is pointless coming here to wind up PaulyPilot with that background knowledge available to the rest of us. We shall concentrate on maximising the return from SDIC thank you.

[scburbs] 17/3/2010 11:09

WJ,

Most of my SDIC positions are SB positions so I am not buying in Euros and I am not swimming against any tide (although you are referring to a tide that has not turned).

If sterling strengthens then SYG's revenues and profits from SDIC will fall so you may find it is you swimming against the tide. The fact that its shares are quoted in sterling won't protect it from the underlying fact that it is deriving revenue from SDIC in Euros.

The more important point for SYG is that if investors in SDIC are not happy then what hope do SYG have of raising another fund to manage? They need to actually perform in exchange for their fees or their business model will have a limited shelf live (neatly illustrated by the Macau fund).

[w1ndjammer] 17/3/2010 11:05

scburbs

not a contradiction, you are buying SDIC in euros at a very poor
exchange rate. eventually when you decide to sell, if SDIC`s share price improves.
look what happens when the pound strengthens against the euro, you are swimming
against the tide.
On the other hand SYG has returned to profit, the mcap is very small 4.8 mill
they could easily make 2 mill profit for the year. what will that do for the SP
and you are buying in good old pounds SDY are recieving euros" look at the exchange rate"

forget paulipilot and his rants about SDIC taking over GOAL it won`t happen
many property co`s have a seperate managenent companys. GOAL has over 300 employee`s SDIC don`t want that on their books. SYG is the way to play this one.

WJ.

[davidosh] 17/3/2010 10:27

I have asked ADVFN to check if Jim Mellon has an account under the name Windjammer.....LOL

Or....maybe the real JM could stand up and tell us what is the benefit of the relationship as it looks to be heading for the divorce courts IMO !!

[scburbs] 17/3/2010 10:21

WJ,

There is no need for SDIC to grow its equity in order for the share price to more than double from here. Stabilisation should do the trick and if there is one thing that the German residential market is it is stable!

Slowly growing rents together with a phased disposal programme should see very significant gains here. If they can significantly cut costs as well then there may be a continuing business under there somewhere.

Also if SYG could actually add some value (e.g. the refurbishment programme) then that would help!

As I understand it you think SDIC is a bad investment, but SYG is a good investment. You must appreciate the inherent contradiction in that!

[w1ndjammer] 17/3/2010 09:44

paulipilot

the German property market is a busted flush, great for rental income
but if you are expecting to grow your equity forget it. " at least a 20 year wait " you need to be in SYG to capitalise on the rentals. its a no brainer.

WJ.

[lagosboy] 16/3/2010 20:24

I will second that, thanks schurbs

[bisiboy] 16/3/2010 18:19

scburbs

thanks for that very interesting reading.

[scburbs] 16/3/2010 14:16

An interesting report, if a bit historic. SDIC's vacancies look far too high compared to what is implied in this report. The report also illustrates the lack of new build (P6).

[scburbs] 16/3/2010 12:55

Financial calender on website puts interims at 24 March (next Wednesday), although it is only an approximate date.

[lagosboy] 15/3/2010 13:46

Given above, why the poor performance.

Seen the spread today > 20%

[scburbs] 15/3/2010 12:52

"Berlin: Rents rose in 2009; sale prices for apartments remained stable
Last year, the residents of Berlin had to pay an average of 4.5% more to rent an apartment. Rents requested rose from €5.60/sqm to €5.85/sqm. The biggest increase, at 6%, occurred in choice locations in Prenzlauer Berg, Mitte, Friedrichshain-Kreuzberg and Charlottenburg-Wilmersdorf, where rents climbed to an average of €10/sqm. These numbers are presented in the current residential market report compiled by stock exchange candidate GSW, together with property consultant CB Richard Ellis and GfK GeoMarketing. Spandau was the only district in which there was no rent hike. On the condominium apartment and investment markets, prices were more stable. The average price requested for an apartment reached €1,612/sqm (2.8% more than in 2008), and €1,066/sqm (+0.4%) for apartment houses. The firms reported a particularly significant increase at top market levels."

[scburbs] 15/3/2010 12:50

"Residential Rental Properties Market

Germany's residential sector and its prices have been, up until now, not affected by the financial crisis. There are no apparent slumps in rents, prices or transaction volumes. The sought after cities continue to enjoy steady population growth and building activity in the multifamily housing sector is leveled low: In the last six to eight years, Germany's builders have been providing sufficient new houses and apartments. The reason for this is the tax situation, because all benefits for private home owners as well as for the investors have been either nullified or greatly reduced, and on the other hand, there is a low assumption of risks in financing of building projects by banks. Therefore, the 2010 outlook for residential rental property remains positive, at least in the major cities."

[lagosboy] 14/3/2010 09:55

fft

Company website and accounts provide that info.

www.speymilldeutsche.com

[fft] 14/3/2010 05:24

I think it is important to know where the SDIC properties are. does anyone have a list ? And, even better, as with CRE AG above, the streets !

[lagosboy] 11/3/2010 17:23

Thank you very much for all that info schrubs, your time is much appreciated.


As Buffet says, if you don't understand it, don't buy it and that is how I feel at the moment.

There seems to have been a rpaid deterioration, despite the overall market performance which you have highlighted......I don't understand why, but it is usually down to management from my experience.

[scburbs] 11/3/2010 16:29

In general, from looking at the various German listed competitors, all seem to be performing relatively well, especially over the June to December 2009 period. Prices and rents are stable or up and most are reporting falling vacancies.

Whilst it is possible that SDIC is massively underperforming these companies the current market as a whole seems slightly positive.

[scburbs] 11/3/2010 16:26

Whilst I am on a roll, TAG Immobolien AG results out a few days ago.

"The aggressive vacancy reduction was a direct contributor to the positive second-half performance. Vacancy was cut by 40% across the Group. In residential property alone, vacancy was reduced by nearly half, bringing the vacancy rate down from 16.4% to 10.1%. In Berlin, rental activities brought vacancy down to currently 14% (2008: 25.6%).

As planned, there were no more write-downs during the second half of 2009, and future personnel costs as well as non-property-related costs were reduced significantly. In addition, the portfolio was optimised with a focus on cash flow and yields."