St.modwen Properties Share Discussion Threads

[solomon] 20/11/2017 11:40

I agree. Automated stops can, on some occasions, make a loss for you. In this case it is beyond my comprehension why the first three minutes traded so mysteriously and then took 15 minutes to recover fully.

[davr0s] 20/11/2017 08:42

Today's an example as to why I refuse to have automated stops in the market any more. Wtf was that at the open?!

[its the oxman] 14/10/2017 16:10

May be a mistake but sold out this week c.380p. GL to those who remain.

[linhur] 18/9/2017 12:49

anley

I don't dispute your optimism but I am not sure how many millions might be available for future developments.
They will have to pay tax on their gain at Nine Elms as they are not a REIT.
Some of the proceeds have been set aside to develop the area of the old market.

I shall be more hopeful when Swansea University gets sold.

[anley] 12/7/2017 09:57

We are now into July and that deal was completed so they can move on.

In the meantime one is buying a share with a £1 discount to NAV which includes millions of cash in the bank. It is not often one gets these chances especially with more property to sell.

[deadly] 21/6/2017 12:33

Looks like good progress:

ST. MODWEN EXCHANGES CONTRACTS WITH WANDA HK FOR THE SALE OF NINE ELMS SQUARE FOR £470M

[hillofwad] 10/6/2017 13:36

From FT
In Nine Elms, analysts have long questioned the sheer number of planned luxury apartments. “It’s looking to be quite a major oversupply,” says Roarie Scarisbrick, agent at Property Vision. Another developer, St Modwen, wrote down the value of its land holdings in the area by 17 per cent last year. Battersea Power Station Development Corporation, which is developing the historic building itself, has applied to delay the construction of 103 affordable homes and review other affordable housing commitments. Citing rising costs and economic uncertainty, it said its expected internal rate of return had dropped to 8.2 per cent from a projected 20 per cent. It is not the only group seeking to modify its affordable housing obligations as Brexit casts a cloud over the economy.

Edoardo Mapelli Mozzi, chief executive of the London developer Banda Property, says: “The private sector alone cannot deal with affordable housing. This way, it only gets built if the top end of the market is working.”

This contrasts with Greystar@s response in Property Week

“We’re aware of all the noise, we read everything everyone else reads, but we’re just a very long-term business and the long-term potential for this area is amazing,” Allnutt said. “If you fast-forward six, seven, eight years it should be an incredible new place in London on the river.”


Royal Mail still have land available to accomodate another 900 apartments and with Greystar servicing the plots will be in a more oven ready position for market The site is of course close by SMP

Can see another £30-£50m trimmed from book value which will only be slightly mitigated by the potential windfall on Swansea Shame that all the good work in the regions is overshadowed by this

[redartbmud] 07/6/2017 23:14

Perhaps they are asking too much.

[spacecake] 07/6/2017 21:11

Royal Mail has agreed to sell two of the seven plots on the site of its former south London mail centre at Nine Elms site to US-based developer Greystar for £101m cash, which has appointed AIM-listed Telford Homes to deliver 894 build-to-rent homes.


If Royal Mail can do it, why can't St Modwen ?

[redartbmud] 07/6/2017 07:45

Yes.
They have created a new stand alone house building arm that broadens the business base. The only danger to that is a fallout in the market.
The sale of the Swansea Campus is the right move. It will free up capital for new developments.
Nine Elms is still a sticking point. For whatever reason, nobody is jumping through hoops to buy it.
Management is doing a good job.

[broadwood] 07/6/2017 07:25

Pretty confident statement.


- St. Modwen said that since the start of the financial year its diverse portfolio and wider business has continued to perform in line with directors' expectations.

It said it had demonstrated resilience in the face of broader market uncertainties.

CEO Mark Allan said over the last six months St. Modwen had undertaken a detailed review of the current portfolio and the existing opportunities within its extensive asset base.

"The outcome of this review has been positive, highlighting the strength and depth of opportunity within the business and portfolio to create value through our regeneration, commercial and residential expertise," he said.

"Having experienced a positive start to the year that reflects management expectations, we will now continue to refine the strategy further and concentrate on those areas of our deep and diverse portfolio that present genuine opportunities for value generation and further business growth which will ultimately lead to enhanced shareholder returns."

[broadwood] 07/2/2017 08:09

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."

OUTLOOK

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."

[its the oxman] 07/2/2017 08:03

Results read well. Further progress expected and sector sentiment will turn at some point, just not sure when.

[bluerunner] 07/2/2017 07:38

A superb set of results from a very well managed Company.Share price NAV of circa 430p must make this a screaming BUY.

[bluerunner] 23/12/2016 14:41

This happens on the actual account statement for both sites, rather than when searching for SMP for a quote.

[bluerunner] 23/12/2016 14:38

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?

[its the oxman] 09/12/2016 11:00

Cheap as chips with good prospects. What's not to like. Guess it's just the low yield.

[spacecake] 05/12/2016 12:45

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.

[catsick] 17/10/2016 10:43

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 ....

[bluerunner] 07/10/2016 11:27

Agree.The share price weakness appears to be in line with larger house builders.

[solomon] 07/10/2016 11:06

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.

[bluerunner] 07/10/2016 10:26

Any reasons for the sharp sell-off the past couple of days?

[spacecake] 03/10/2016 21:07

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.

[solomon] 29/9/2016 11:40

Apple have announced that they are moving their UK HQ to the old Battersea power station. This adds kudos to the Nine Elms district.

[bit thick] 23/9/2016 14:03

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.