Shaftesbury Share Discussion Threads

[konradpuss] 11/3/2020 07:36

Loaf, an interesting thought. I could however pick any number of companies which run on equity would return similar or a lot more over a few years.

My view is Sammy and the Norge fund will try and carve up the company first making a 'low ball' bid.

It's just the over all affordability of their rents that worry me. Can they get those reversions? O.K. they have defied gravity so far, however the units in Covent Garden that are vacant and have affected the last valuation could just be the start.

[loafofbread] 10/3/2020 22:38

Rates are almost negative, with some banks are charging to hold your money.

Returns are going to be close to zero for a very long time.

Debt here is priced at approx 3.7% (between 2 and 9 years)

The full year dividend is 18p, giving a 2.5% yield.

Norways sovereign wealth fund has assets of $800B? so effectively free cash and 26% of SHB.

SHB has the prime prime assets in London which will never change.

Buy the company, clear the debt, cancel divi and you are on a 6% yield plus future capital growth.

Compounded it's paid for in 10 years, by which time the assets will be worth another 25% minimum.

[konradpuss] 10/3/2020 21:18

It's the 'perfect valuation' that worries me.

A very low yield (O.K. money is veryyy cheap) and high rents.

What do they say 'a safe investment is one you have not seen the problems with'.

The saving grace might be a bid from Sammy - not at £8.88 now mind!

[essentialinvestor] 10/3/2020 20:51

Nothing lasts forever - tell me about it!! - I'm asthmatic and there is
a new virus which may lead to pneumomia doing the rounds ).

Their geographic location is about as prime as it gets, was still not hard during the last financial crisis, though quickly recovered.

[konradpuss] 10/3/2020 20:49

Essential, the reversion to ERV might just not be there.

I love the location of the portfolio, I love the fact that there are two large shareholders = each might bid, however they have had a good run in respect of increasing rents - nothing lasts for ever.

[essentialinvestor] 10/3/2020 20:40

Re NAV/valuations, agree the scope for valuation declines should be kept in mind, I've flagged this up a number of times previously.

We are trading around £2 a share Under last reported NAV atm.

[essentialinvestor] 10/3/2020 20:12

I think that may week happen re the virus, that may be the time to take a look
at the pub sector, selectively.

[konradpuss] 10/3/2020 16:18

hindsight, my concern is valuation. There is some reversion, however no growth and perhaps even some negative growth in respect of rents.

[hindsight] 10/3/2020 16:04

I've been nibbling but concern I have here is London becomes like Rome for a while. On other side of coin think EU trade deal will happen as BoE/ECB will over rule any politics. And of course gilts yields shifted income returns.

[essentialinvestor] 10/3/2020 15:23

That's me in.

[essentialinvestor] 10/3/2020 14:04

Sitting duck?.

[konradpuss] 06/3/2020 17:06

Loaf, I cannot disagree with you.

I am unsure it will test that level mind.

[loafofbread] 06/3/2020 11:56

Looking to get back in at £7.50 again.

[loafofbread] 03/3/2020 07:50

Nice vote of confidence. £120K first purchase.

[konradpuss] 01/3/2020 13:13

Do we think that 'the trouble on the high street' will finally hit Shaftesbury?

If you think it is mostly or completely immune then is this a buying opportunity?

[loafofbread] 25/9/2019 07:25

A decent statement in these turbulent times.

[phillis] 20/9/2019 16:49

I presume Sammy’s funds come from his UK interests
My bet is on the Norwegians

[konradpuss] 20/9/2019 15:59

Come on Sammy bid before the pound strengthens.

[phillis] 20/9/2019 15:41

Indeed
RNS coming

[loafofbread] 20/9/2019 15:39

Impressive auction!

[konradpuss] 30/8/2019 17:31

Loaf, a very good call.

I have traded these twice over the last three years. I missed this one.

The bid must come soon.

[essentialinvestor] 30/8/2019 14:34

Nice couple of weeks.

[phillis] 30/8/2019 14:27

Not sure why you lot are moaning
Company's job is to maximise the rent roll and convert new footage to buildings that attract tenants paying optimum terms

Poor old wine bar!