|St Modwen Properties has booked a much lower FY pretax profit of £66m, from a profit of £235.2m a year earlier.
The results included broadly flat revenue at £287.7m, from £287.5m, but lower contributions for gains on disposals and revaluation gains. Administrative expenses were higher, and it booked a loss on joint ventures and associates from a year-earlier profit.
However, its EPRA net asset value per share rose to 460.5p, from 446.4p, and total dividend was hiked to 6p a share, from 5.75p.
"Active commercial property development and asset management, coupled with a strongly performing and growing residential arm, contributed to another good year for St. Modwen," said CEO Mark Allan.
"This is despite the turbulent market backdrop during 2016," he added.
Allen said the company had begun a review of what he believed was a "fundamentally strong" business and portfolio to determine its strategy moving forward.
"We unquestionably have an opportunity to build on our existing strengths while ensuring that our activities are focused in the optimum way and I am excited about the prospects ahead."
St. Modwen said it was a long-term business operating in cyclical markets and therefore must plan and manage its business accordingly.
"The past 12 months have been unsettled in this respect and the outlook for 2017 and 2018 looks to be similarly uncertain, as a range of macro-economic factors play out both globally and more locally to the UK," it said.
"With this outlook, it is important that we continue to manage our balance sheet prudently while also seeking out appropriate new value creation opportunities and converting existing ones.
"This will require an innovative and agile approach but our track record suggests we remain well placed to succeed."|
|Results read well. Further progress expected and sector sentiment will turn at some point, just not sure when.|
its the oxman
|A superb set of results from a very well managed Company.Share price NAV of circa 430p must make this a screaming BUY.|
|This happens on the actual account statement for both sites, rather than when searching for SMP for a quote.|
|Strange thing today.Both HL and AJ Bell are currently showing share price valuations (bid) of 234.4p for this.Anyone else experiencing this issue?|
|Cheap as chips with good prospects. What's not to like. Guess it's just the low yield.|
its the oxman
|Todays trading update
'New Covent Garden Market
We have previously indicated that during 2016 we would be bringing the 10-acre Nine Elms Square site to market. Formal marketing commenced late summer and, whilst we are still at an early stage and there can be no guarantee that any transaction will take place, we can confirm that we have received firm levels of interest from a number of parties and the Board has been encouraged by the progress to date. We will provide a further update as appropriate in due course.'
The Company intends to announce its annual results on 7th February 2017.|
|Nine elms is the train wreck that will be the icon of the bust that is about to manifest itself, as the docklands was in the 90's bust, 20k properties being built in sw8 at the moment, many completed and not a single new build transaction in august in the whole of sw8 after a single transaction in july, this is going to be very ugly, having said that a large part of the bad news is priced in and the cov garden assets will do well with increased tourism off the cheap pound ....|
|Agree.The share price weakness appears to be in line with larger house builders.|
|I see no reason for the share price weakness.
I was in the Nine Elms area on Monday. Impressive amount of building going on. US Embassy looks fully built, Battersea power station in a sea of cranes, Wandsworth council promising to beautify the riverfront, and of course the new New Covent Garden a hive of activity.
Nine Elms is on an impressive bend in the river. St Stephen's Tower to the east and the old Pink Floyd power station to the west. If I was a rich foreigner, I would want a piece of that.|
|Any reasons for the sharp sell-off the past couple of days?|
|The Treasury is to allocate £2bn to boost housebuilding and address what Sajid Javid, communities secretary, has called a “moral duty” to tackle Britain’s longstanding housing shortage.|
|Apple have announced that they are moving their UK HQ to the old Battersea power station. This adds kudos to the Nine Elms district.
|I agree with what you've said, my point was that this is overdone, as the price has been driven by negative sentiment rather than asset values. The £21M reduction is a small proportion of the portfolio.|
|Bit Thick, what you may have missed is that there was quite a lot of press speculation about overdevelopment and falling demand at one of their largest regeneration schemes at New Covent Garden Market and a write-down of values at the half-year statement in July -
"These results absorb two negative factors:
- NCGM revaluation - during the period and based on recent transactional evidence, NCGM was revalued principally on the basis of a residential sales price reduction of 3.75%. This resulted in a £21m reduction of the valuation of our share of this asset. The NCGM valuation is consistent with our expectations and demonstrates that market evidence does not support the level of negative sentiment expressed during the first half of the year towards Central London Zone 1 residential prices and Nine Elms in particular.
- Stamp Duty Land Tax (SDLT) - a one-off £13m impact from the increase in SDLT announced in the recent Budget."
I'm sure over the long term this well-run company will continue to do excellently but at the time, that spooked the market and it took another hit - with all other property co/builders - on Brexit.|
|Bit Thick:cuts not following Current property values but expected Future property values since it will take years o convert its land bank to saleable properties.|
|Not sure this share follows property prices. In August 2015 it was nudging £5, in June 2016 it was less than half that. Did I miss the halving in property values? This is oversold and represents good long term value at these levels.|
|Property prices have been reported to have levelled off in the last few months. It had been predicted that the rises would end at some point. Perhaps it's a case of sell the rumour buy the news.|
|Best day for some considerable time for SMP. Any clues as to why? It would be nice to break and stay above the £3 barrier.|
|The world is getting smaller and outside of the EU we can trade with, and have investment from so many other countries. Yes, the transition may be volatile, but the risks from the Eurozone are ever present and Italian banks are likely to need a bail out. Then people will rush towards good, solid investments.
We may not have reached the bottom here but the descent is slowing. this is a good long term investment.|
|Global sovereign wealth funds are waiting to pounce on bargains instead of paring stakes in the U.K. following the Brexit vote, a senior industry expert said Friday.
"Sovereign wealth funds are patient capital. They have a long term investment horizon," Michael Maduell, president of the Sovereign Wealth Fund Institute, told CNBC's "Squawk Box" on Friday.
"When everyone is freaking out about the pound sterling going to a 31-year low, wealth funds can come in and tactically purchase assets and tactically place bids on companies."
In the wake of the U.K.'s referendum vote to exit the European Union (EU), the pound has plunged to its lowest levels since 1985 and a leadership vacuum has emerged in the wake of the resignation of Prime Minister David Cameron.
A rush of fund outflows from the U.K. has spurred several property funds -- including those run by Standard Life, Aviva, M&G, Columbia Threadneedle and Henderson -- to suspend redemptions as investors clamored to yank their money.
In addition to short-term market gyrations, a possible exit from the EU will also have long-term consequences.
Brexit may have put London's status as a major financial center at risk as an exit from the EU would likely cost it its ability to trade freely with the continent.
"These are the opportunities that cash rich wealth funds can take advantage of," Maduell said. "They can jump on real estate when it goes too far down."
Maduell noted that a number of sovereign wealth funds, including Singapore's Temasek, Malaysia's Khazanah and the Kuwait investment office, already had offices in London.
Brexit may also be a factor in a slowdown in deals by sovereign wealth funds, Maduell said.|
|The fund suspensions should help in the short term, but this panic has a few weeks in it yet. I've got my vomit bag ready.|
|I'm not sure we'v reached the bottom yet but i've got my fishing rod out just in case.
Seeing a couple of Director buys is always encouraging.|
|Don't think Carney is helping. There cannot have been reliable statistics, post Brexit vote, so I can't see the justification for all this doom and gloom|
|Yes - the sector is getting battered.Investors also further spooked by those property fund suspensions no doubt.Jonas Crosland in the IC has reiterated his buy stance this evening.'Analysts at Peel Hunt expect to downgrade full year end NAV from 477 to 460.''Given rental income is growing well, the discount is hard to justify. We're still buyers.'Balls of steel and all that but, taking a longer term perspective, could this now be a good buying opportunity?|