St.modwen Properties Dividends - SMP

St.modwen Properties Dividends - SMP

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
St.modwen Properties Plc SMP London Ordinary Share GB0007291015 ORD 10P
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
0.00 0.0% 517.00 517.00 517.00 517.00 517.00 09:28:05
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Industry Sector

St.modwen Properties SMP Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

cordwainer: from The Times TEMPUS: Selling strategy is paying dividends for St Modwen If you are looking to buy a few shops, or perhaps a small shopping centre, or even, say, a town centre in Edmonton Green in north London, look no further than St Modwen Properties. The FTSE 250 regeneration specialist is on a selling spree and, frankly, it could not come soon enough. Until the start of last year, the company had languished as a property business with an erratic and sprawling portfolio that did not make a lot of sense. It had specialised in buying land that no one else wanted to develop, such as old oil refineries or steelworks, and turning them into huge sites of offices, shops and retail. It also held a 15-year-long landbank but no real housebuilding business to speak of, small retail assets that were not generating much income, and town centres that were returning little more than £5 million in rent, such as Edmonton — yours for £70 million, if you are interested. Mark Allan, the former chief executive of Unite, the student accommodation provider, came in and changed all that. He decided that St Modwen would continue to take on regeneration sites but the focus would be housebuilding and industrial and logistics centres. Almost everything else could go. It was a bold move and has pleased investors it seems. The share price since Mr Allan arrived in December 2016 is up to 404p from 303p. The group’s interim results show its strategy is going well. The company has sold £350 million of assets, including £95 million of retail, taking disposals since the strategy was announced last year to £635 million, representing 35 per cent of St Modwen’s portfolio. Yes, some of the retail assets are selling 4 per cent below November 2017’s book value but in this climate that should not be considered a bad run. The returns from selling properties are also showing big gains for the company. Take the £95 million of retail and £139 million of student accommodation in Swansea the group sold in the first half of the year. This was delivering a net rental income of about £10 million a year. The group has invested half the proceeds from these sales — about £110 million — in its logistics and industrial pipeline and is set for an income of £11 million a year. Scale that up to £500 million of capital being recycled and that translates into a big move on earnings and, by extension, the dividend over the next two to three years. In the past, a lot of cash generated by St Modwen was development profits, as the company sold all that it developed. Now it will hold on to assets that generate an income and link the dividend to the recurring cashflow from this activity and housebuilding profits. This means, as income increases, dividends should rise more strongly. St Modwen reported a 53.5 per cent increase in the dividend to 3.1p per share, up from 2.02p a year earlier. The cash from these disposals is enabling the management to pursue an ambitious development strategy of boosting its residential and logistics divisions by 25 per cent a year, while keeping debt at a low level, at 24.2 per cent loan to value in the first half. The shares dipped 4 per cent to 404p after the company revealed profits were down 18 per cent to £25.9 million and earnings per share fell 22 per cent to 9.4p, although net asset value per share rose by 1 per cent to 455.4p. The company expects profits to be up on the year with the interim fall due to the winding down of a joint venture with Persimmon. The total return for the half year was 2 per cent but is expected to be 6 per cent for the full year. St Modwen wants that to rise to between 10 per cent and 11 per cent within three years and that means a big boost in dividends. With shares at a 16 per cent discount to November 2019’s NAV, this is worth a buy. ADVICE Buy WHY Sensible disposal strategy is performing well and will boost dividends over a three-year horizon
bluerunner: A superb set of results from a very well managed Company.Share price NAV of circa 430p must make this a screaming BUY.
bluerunner: 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?
lazygun: What surprises me is that you have profit of nearly a pound per share, and yet the dividend is a poultry 1.9% of the current share price..... If they're making that much profit, why isn't more if that being distributed back to shareholders? L.
ed 123: Morgan Stanley joined the chorus last week. The warning from Morgan Stanley adds to concerns over a glut of homes in areas like Nine Elms,... Of course, such chatter doesn't mean that prices are certain to fall by 20%. Also SMP's share price is about 40% down from its August 2015 high. Is that enough of a fall for now, while the market awaits further price/sales data? Will today's buyers at c. 305p be laughing in 12 months time?
ed 123: Isn't the falling share price a response to rising doubt about the financial success of VSM's redevelopment of Covent Garden Market? The agreement with Covent Garden Market Authority was signed in January 2013. From what I can see, house prices in the area may have peaked at the end of 2014. Press reports, such as this, will have hit confidence. Speculative investors head for the exit in Nine Elms development I haven't read the agreement between VSM and CGMA but, if it is structured so that VSM pay for the Market redevelopment, then there is higher risk carried by VSM because the sale price per property will have to cover land cost, build cost, finance cost and a per property share of the cost of the Market rebuild. If this is the case, then projections for achievable property prices are more critical than for a normal (ie. site clear and then build flats) redevelopment. I should state that I'm not trying spook anyone. Just sharing my own thoughts on why the share price might be falling. I'm neither long nor short St Modwen, and wish holders a good outcome. Edit: Perhaps I need to add a little balance. St Modwen are very experienced developers and will have put massive effort into planning and pricing this big project, including projecting outcomes if softer end markets should hit. I suppose the question is, "Have they been sufficiently cautious?" I doubt that private investors are in a position to answer this.
creative_accountant: Maybe the new CEO will look at the dividend policy, which should help the poor share price performance.
aaainvestment: I was just about to ask the same question - why the stingy dividend policy? With sparkling results and profits like they are producing the share price should be way higher, but the dividend for a mature company appears ridiculous. BP. have just retained theirs in the face of a very poor performance!
bluerunner: Broker upgrades and press coverage may spark a re-rating. The share price is certainly at bargain levels IMHO.
deadly: Share price is certainly bizarre. Would surely make a prime takeover target!
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P: V: D:20200219 09:44:41