Sigma Capital Share Discussion Threads

[johnmcd51] 06/12/2017 11:23

Have posted on LSE, iii and ADVFN before, looks like we are the only ones interested in this, very glad to see it rising albeit slowly over the past year but this nice run is looking good, hope it continues. With all the housing shortages talked about I'm surprised this is still well below the radar unlike the ever popular very risky oilers etc, Good luck to us.

[busterdog2] 27/11/2017 12:48

Good to see a little bit of interest this morning :-)

[busterdog2] 30/8/2017 20:19

No rental income from the properties sold to REIT, it's all explained in their news releases regarding the REIT.

[busterdog2] 30/8/2017 20:15

No rental income

[topvest] 30/8/2017 19:55

OK, thanks. Why does selling to the REIT lower profits though, as shouldn't be any different to selling to a third party? I'm confused.

[olliemagern] 30/8/2017 17:57

topvest, most of the houses sigma were going to build and purchase this year are now going to the prs reit in order to get their investments up to speed.
Sigma should be back to normal growth next year, as well as getting paid for managing prsr.

[topvest] 27/8/2017 17:55

I've been looking at this. Could someone please help me on why the REIT float has pulled back the current year forecast EPS so much?

[masurenguy] 15/7/2017 15:39

IC Comment: "The PRS REIT also intends to use gearing to enhance equity returns with this capped at 45% of gross asset value. The REIT is targeting a stabilised dividend yield of 6% or more per annum and net total shareholder returns of 10% or more per annum post stabilisation, with a target dividend yield of 5% in the period to 30 June 2018.

Broker forecasts
House broker forecasts for the year ending December 2017 are for adjusted pre-tax profit of £3.8m and adjusted Earnings per share of 3.7p. For the year ending December 2018 forecasts are for adjusted pre-tax profit to rise materially to £8.3m and Earnings per share to rise to 7.9p. Plenty of opportunity for this PRS specialist to deliver meaningful returns to shareholders."

[busterdog2] 15/7/2017 10:46

Investorschampion latest coverage...

[busterdog2] 30/5/2017 13:59

The free bit says....
Impact of the REIT on FY 17e PBT of -70%, so PBT around the same level as 2016, but the REIT is expected to generate around £32m income and development profit over 5 years.

[hastings] 30/5/2017 11:42

New Singer note out today where the broker sees intrinsic value for Sigma well north of £1.00 per share.

[asagi] 26/5/2017 09:28

Hi olliemagern,

once net assets begin to rise next year, there will be a stampede to get in for the yield.

I feel similar.

Asagi (long SGM, no position PRSR)

[olliemagern] 25/5/2017 22:55

PRS Reit allocation. First £10,000 get all, after that get 58% up to a maximum £62,500.
I think everyone will be happy with their allocation. Like the BBOX float, once net assets begin to rise next year, there will be a stampede to get in for the yield.

[asagi] 25/5/2017 09:21

oh yea of little faith, jonwig ;-). RNS here:


surprised not to see more of a pop for Sigma shares. Oversubscribed raises prospect of further issuance, leading to more fees for Sigma.

Asagi (long SGM, no position PRSR)

[riddlerone] 25/5/2017 07:53

Agreed very good news,will be really interesting to see the broker forecasts when they come out.

[hastings] 25/5/2017 07:46

Yes Jonwig, excellent result.

[jonwig] 25/5/2017 07:18

SGM holders can be delighted that the PRSR launch was significantly oversubscribed. It should trade at an immediate premium and give SGM some fairy dust sparkle.

[jonwig] 21/5/2017 06:28

buster - not as yet. The company gave a presentation to brokers on the 15th, but I haven't had anything back.

Fortunately something else has turned up which fits my risk appetite better: AEW UK Long-Lease REIT.

[busterdog2] 20/5/2017 14:45

jonwig - any response from your broker regarding your concerns?

[riddlerone] 16/5/2017 18:03

Well just over a week to go !!!I have been looking at our three large shareholders-Hendersons,JO Hambro and Invesco.They all have quite substantial funds investing in REITs around the world.With the support they have given SGM over the years(Especially Hendersons)you would have to hope that they would also be in the PRS REIT shareholder list.

[asagi] 14/5/2017 15:13

was watching Homes under the Hammer recently. Frequently, the properties acquired and renovated yield 4.5% - 6% estimates for rental.

"Yeah, yeah, that's the sort of amount we were thinking"

say the property developers, nodding with a naive semi-confidence.

given all the time and energy that goes in, shouldn't such people just be giving their cash to PRSR and collecting the quarterly income? You can well see shares in REITs like PRSR becoming a staple recommendation of financial advisers (though I think many are not savvy enough to recommend them).

Furthermore, they would acquire an income at vastly less risk of voids etc. diversified across hundreds/thousands of properties, with no renovation/repair headache. The comparison makes PRSR shares seem a no-brainer.

Asagi (long SGM)

[riddlerone] 14/5/2017 14:42

hxxp://www.insidehousing.co.uk/sigma-targets-1bn-prs-investment-in-five-years/7019908.article
"The UK’s first real estate investment trust (REIT) dedicated to the private rented sector is targeting £1bn of deals over the next five years.

"Sigma Capital, which last week announced its intention to float its PRS REIT on the London Stock Exchange, is partially funded by £25m from the Homes and Communities Agency and has £375m of transactions in its current pipeline, which could ultimately reach £1bn of deals, with up to £400m of leverage".