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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| St.modwen Properties Plc | SMP | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 559.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 559.00 | 559.00 |
| Top Posts |
|---|
Posted at 05/7/2018 05:16 by 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 |
Posted at 08/7/2016 06:46 by dlku 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. |
Posted at 05/7/2016 18:17 by bluerunner 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? |
Posted at 04/3/2016 18:36 by 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. |
Posted at 05/2/2016 16:58 by webclick99 Volume today not excessive. Level 2 from what I can see seems to show a reasonable balance between buys and sells.As an investor though, I'm lacking guidance and future financial forecasts. I couldn't find any in their annual results. People want to buy on the future, not the past. Where is the future financial guidance? If anyone has any, pls share |
Posted at 02/2/2016 09:09 by aaainvestment Peaeff - it's dividend mate, it's a massive disincentive to investors because there appears no reason why they are not paying a higher one.There are loads of secure companies that don't pay dividends or small ones because they are growing or having problems, but that doesn't fit for SMP they are not under pressure or in need of building financial strength, they appear to have a policy of not distributing the gains to shareholders, I suppose it's OK for some but to most shareholders it's intolerable because there is never a real pay-day. When does a shareholder receive a decent dividend? 2020? 2030? it needs aligning with profits, most investors will choose the likes of Vodafone or some other FTSE company that pay a %5+ dividend and have share price growth. I'm back to what I said in a previous post, who are the management running this for? As I said, I have just bought in and can see this going higher in the coming days/weeks/months, but until they sort that issue out they will retain a silly PE ratio. |
Posted at 02/2/2016 08:43 by aaainvestment redartbmud - but its a mature business not a growth company and even level headed long term investors that will accept lower levels of income want 2 - 2.5%, the share price growth tells everyone it's not a growth company.If it was a true growth company the share price would have soared this morning, I'm amazed the share price has fallen today. Bought a few, but the dividend my main concern as a newby - that should tell you something about where the problem lies. The management need challenging on who they are running the company for IMO, smack of cosy little niche for them. |
Posted at 02/2/2016 08:33 by redartbmud blueThe poor dividend yield is the Achilles heel. Since the days of Stan Clarke, they have run it as a growth business. Income is a minor consideration. It helps in hard times, because it isn't a drag on cash but at the same time puts off a certain class of investor. red |
Posted at 01/2/2016 12:48 by jeffian I did, but it was principally about the glut of residential apartments being put up - mainly for foreign investors - and criticising the planning process. SMP are carrying out the New Covent Garden Market development which is mainly commercial property. |
Posted at 02/10/2015 11:32 by bluerunner The update may not be a mandatory requirement but surely it's a good thing in terms of investor relations.Otherwise we are largely reliant on financial press coverage which is a bit random. I'm hoping for something soon.I'm quite committed here and have also taken advantage of the recent dip. I intend to hold for med-long term but an update every 6 months can't be too much to ask for. |
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