Summit Properties Share Discussion Threads

[davebowler] 17/1/2020 15:50

Yes, I would go along with that!

[alpal2] 10/1/2020 14:17

Since they now hold 82% there seems little logic to the listing. Would be great if they bought out the remaining 18% of us at NAV; a great start to the new year.
And they have the cash to do it having just sold the office development for nearly half the market cap.

[jeff h] 10/1/2020 13:24

Looks like Chase & Vidaco have been bought out - the last 2 remaining 3%+ holders outside of Unifinter / Summit Real Estate Holdings Ltd...maybe an offer for the remaining holders?

[davebowler] 06/1/2020 08:47

Liberum: Summit Properties Material disposal crystallises gains and provides capital for development opportunities Mkt Cap £526m | Prem/(disc) -31.8% | Div yield 1.4%EventSummit Properties has completed the disposal of an office property for €225m. The sale was originally announced in June 2019 and the sale price represents a 7.9% premium to the book value at the time of the announcement. The property had a passing rent of €4.6m, reflecting a gross passing yield of 2.1%. A 77% owned subsidiary of Summit Properties has agreed a €6.5m acquisition of an office property in Hanover. The property is adjacent to an existing asset in the portfolio. Liberum viewThe office property was one Summit's largest, accounting for 14% of the overall portfolio value. The sale will add c.1.8% to NAV in H1 2019. We believe the property that was sold is the Osramhöfe office asset in Berlin. The property has experienced material valuation uplifts in recent years due to rental growth potential. The property offered considerable remaining upside but would require quite a high level of capex in order to drive further growth. The sale enables the company to crystallise gains and recycle the capital into higher yielding assets. The disposal demonstrates the depth of investment demand for German office properties and the quality of the assets in the portfolio. The disposal will enable the company to progress a number of development opportunities. In total, Summit has 1.6m sqm of surplus land with 503k sqm of additional building rights. Current projects comprise eight schemes that are expected to deliver a mixture of residential space to sell (32k sqm) and commercial space to hold (111k sqm). The company takes a prudent approach to development and only seeks to progress projects that have been de-risked through pre-sales/pre-letting. The pipeline has involved minimal up-front capital spend, as the projects are all on existing assets in the portfolio. This gives Summit an advantage over other developers, who would have to factor in land costs for new developments. We estimate the development pipeline has a GDV of c. €450m with projects due to complete over the period to 2024. We have only included a relatively small amount of development profit over the period to December 2021 (c. €30m) given potential uncertainty over construction timing. Our forecasts imply an average NAV total return of 12% over the next three years with c.50% of returns coming from recurring earnings.

[jezreel] 28/12/2019 11:17

Always perplexed by the dividend policy here, from a company that states " Our objective is to deliver attractive and secured dividends with sustained growth in both income and capital values.'
A 0.5 cent dividend after a 14 month gap with no dividends at all. Annual dividend seems to have dropped from 3 cents to 0.5, though there is some vague promise in the half-yearly report.
I wouldn't mind if there was some sort of transparency here - the lack of information makes me uneasy.
Anyone else?

[davebowler] 25/11/2019 13:26

Sirius - now on a premium to NAV of 12%!

Liberum;

Mkt Cap £787m | Prem/(disc) 12.2% | Div yield 4.0%

Event

Sirius Real Estate's EPRA NAV at 30 September 2019 was €0.793 per share (March 2019: €0.7482) which represents an 8.3% NAV total return over six months.

The NAV performance was driven by a c.5% like-for-like revaluation gain over the six-month period. The valuation uplift is due to a combination of yield shift (47 bps of yield compression) and organic rental growth of 0.9%. The gross yield of the portfolio is still relatively high at 7.4%. The valuation of the portfolio was supported by the completion of the sale of five properties to the Titanium JV with AXA. The sale price was at a 19% premium to the prior carrying value.

Annualised rental income rose by 0.9% on a like-for-like basis over the period despite a number of large move-outs. Like-for-like occupancy has remained steady at 85%. The company has completed more than 50,000 sqm of new lettings, offsetting the impact of vacating tenants, including 25,000 sqm on newly acquired properties.

Adjusted EPS rose 14.5% in the half-year to 2.51 cents per share. The dividend has increased 8.6% to 1.77 cents per share. As expected, the payout ratio reduced from 70% to 67% and the company expects to revert to a 65% payout ratio over the longer term.

The net LTV ratio at 30 September 2019 was 30.6%, comfortably within the target of 40%.

Liberum view

Sirius has delivered another set of positive results and the company is on track to generate a NAV total return in excess of 15% for the fifth consecutive year. Today's results demonstrate continued strong performance with operational gains in addition to an uplift from yield compression. Significant upside remains given the scope for asset management improvements across the portfolio. The value-add properties represent 46% of the portfolio and have a vacancy rate of 27.3%. The company's capex investment programme is delivering significant gains and there is considerable potential to increase this across the portfolio. Approximately 42% of the vacant space in the portfolio is going through the capex investment programme.

The occupational market has improved over the past three years which has enabled the company to generate a material increase in both portfolio occupancy and the average rate per sqm over that period. The price achieved for the asset sales to the JV demonstrates the level of investment demand for commercial assets in Germany. Sirius remains well-placed to maintain its strong NAV performance with rising rental growth in addition to potential yield compression.

[jeff h] 22/11/2019 00:02

SREHL presumably already has a waiver for having to make a takeover as it already owned over 29.9% (50.5%) before today's purchase to take it to 69.8%.

B of NY Nominees = Invesco/Mark Barnett I am told.

[alpal2] 21/11/2019 18:47

Is there any requirement to make an offer to all shareholders at same price €1-45; nicely above current market price.

[jeff h] 21/11/2019 17:52

Looks like Unifinter (Summit Real Estate Holding Ltd)has bought 78 million shares at E1.45 from Bank of New York Nominees

[davebowler] 21/11/2019 09:36

Liberum:Real Estate Summit Properties  Positive signals from investment market Mkt Cap £500m | Prem/(disc) -35.5% | Div yield 1.5% EventSummit Properties' NAV at 30 September 2019 was €2.03 per per share, representing a 0.9% increase for Q3 and 7.4% to date in 2019. The return was driven by recurring earnings as the portfolio was not revalued in the quarter. Rental income received to date in 2019 is €60.9m, 29% ahead of the same period in the prior year. Funds from operations (FFO) have increased by 28% to €39.6m (9m 2018: €31.m) including €2.3m from residential development profits. This is in line with previous guidance of €51-56m of FFO for 2019. Summit has also reported stable occupancy of 92% across the portfolio (excluding properties held for redevelopment). Summit previously reported the sale of a property for €225m, 7.9% ahead of the book value. The sale is due to complete in December. The company has also received offers for two properties significantly above their book value of €68m. Liberum viewThe trading update has confirmed that Summit is on track to deliver a significant earnings uplift in FY2019. Our forecasts imply a 23% increase in recurring earnings in 2019 excluding residential development profits .The potential sale of two further assets at a material premium to book value highlights the strength of investment demand for German commercial property despite lower GDP growth projections for the country. Total investment volumes for commercial properties in Germany totaled €38bn in the nine months to September 2019. This was slightly down on the prior year although this is mainly due to a shortage of supply. Investor demand remains high due to positive market fundamentals. Yields for city fringe and secondary locations continue to compress due to a lack of supply of investment properties. The average vacancy rate across the Top 7 German cities is projected to be 3.1% at the year end (source: Jones Lang LaSalle). Recent M&A activity also demonstrates the value offered by Summit (35.5% discount). Funds managed by Blackstone completed an all-cash transaction to acquire all of Dream Global REIT's assets and subsidiaries for CAD$6.2bn. The price represents a 9.1% premium to the June 2019 EPRA NAV

[jeff h] 31/10/2019 16:26

All these buy backs and cancellations will all help to increase the NAV at the forthcoming 31/12/19 year end.

[davebowler] 31/10/2019 16:12

28 October 2019

Summit Properties Limited (the "Company")

Transaction in Own Shares

Summit Properties Limited announces that pursuant to the general authority to make market purchases of its own ordinary shares of no par value ("Ordinary Shares"), granted by shareholders of the Company on 10 July 2019, the Company repurchased for cancellation 2,600,000 Ordinary Shares at a purchase price of EUR1.28 per Ordinary Share on 25 October 2019.

[davebowler] 17/10/2019 12:16

17 October 2019

Summit Properties Limited (the "Company")

Transaction in Own Shares

Summit Properties Limited announces that pursuant to the general authority to make market purchases of its own ordinary shares of no par value ("Ordinary Shares"), granted by shareholders of the Company on 10 July 2019, the Company repurchased for cancellation 300,000 Ordinary Shares at a purchase price of EUR1.28 per Ordinary Share on 16 October 2019.

Total voting rights

[davebowler] 17/10/2019 12:16

17 October 2019

Summit Properties Limited (the "Company")

Transaction in Own Shares

Summit Properties Limited announces that pursuant to the general authority to make market purchases of its own ordinary shares of no par value ("Ordinary Shares"), granted by shareholders of the Company on 10 July 2019, the Company repurchased for cancellation 300,000 Ordinary Shares at a purchase price of EUR1.28 per Ordinary Share on 16 October 2019.

Total voting rights

[davebowler] 14/10/2019 14:51

To increase the NAV.
The same applies to any buyer -buying below NAV (which is 2 Euros+) is a sound strategy- but as a manager they must have hoped to push up the share price after the news.
If its NAV performance had been poor over the last 5 years I could see why a big discount would be ignored by buyers but in fact its up by 200% over that period -much higher than Sirius, its German Commercial Property rival.

[alpal2] 14/10/2019 11:51

But why would Summit pay over the odds [€1.28 vs €1.25] to someone who wants out?

[davebowler] 14/10/2019 11:46

Amazing that there was no effect on the share price.
Institutional shareholder wanting to exit?


11 October 2019

Summit Properties Limited (the "Company")

Transaction in Own Shares

Summit Properties Limited announces that pursuant to the general authority to make market purchases of its own ordinary shares of no par value ("Ordinary Shares"), granted by shareholders of the Company on 10 July 2019, the Company repurchased for cancellation 7,800,000 Ordinary Shares at a purchase price of EUR1.28 per Ordinary Share on 10 October 2019.

[alpal2] 02/10/2019 16:35

DB: Thanks for Sirius post. Very frustrating that Phoenix Spree and Summit remain stubbornly at >30% discount. Only major difference I can see is that Sirius pays out a very much higher proportion of earnings as dividend.

[davebowler] 02/10/2019 16:05

Liberum on Sirius Real Estate:Mkt Cap £745m | Prem/(disc) 8.4% | Div yield 4.2%EventSirius Real Estate has delivered a reasonably positive trading update for the six months to September 2019, with like-for-like rental income growth of 0.9% in the half-year. Like-for-like occupancy has remained steady at 85%. The company has completed more than 50,000 sqm of new lettings, offsetting the impact of vacating tenants, including 25,000 sqm on newly acquired properties. The Titanium JV completed in the period, releasing €70m of net proceeds back to Sirius. The company has c.€170m of firepower to fund acquisitions and €66m of assets were notarised in the period (c.7% acquisition yield).  Liberum viewThe occupational market has improved over the past four years, which has enabled the company to generate a material increase in both portfolio occupancy and the average rate per sqm over that period. Sirius has generated a NAV total return in excess of 15% for four consecutive years, driven by operational gains in addition to an uplift from yield compression. The company's capex investment programme is delivering significant gains and there is considerable scope to increase this across the portfolio. Approximately half of the vacant space in the portfolio is going through the capex investment programme. The key risk for the company is the slowdown in the export-orientated manufacturing sector. The services sector has held up reasonably well to date but would be at risk in a prolonged contraction. :

[alpal2] 25/9/2019 09:27

Company seems to have a strong cash flow but a very low dividend yield. Would a higher dividend payout bring the share price into line with peers? What are dividend yields of peer companies.

[davebowler] 25/9/2019 09:21

Conclusion-
Summit’s -39.6% discount to the June 2019 NAV is over 30 percentage points wider than the 7%
average discount for peers (Alstria, TLG Immobilien, Aroundtown SA, Dream Global Office REIT,
Deutsche Mittelstand Real Estate and Sirius Real Estate). This is despite Summit’s significantly
stronger NAV performance since IPO in 2014. In our view, the outlook for sustainable double-digit
NAV returns remains robust given the stable recurring income, asset management potential
(reversionary upside, low capital values) and positive market fundamentals. We upgrade our Target Price to €1.58 (from €1.27) to reflect strong NAV growth. Our TP implies a 25% discount to the December 2019 NAV forecast.

[davebowler] 25/9/2019 09:15

Liberum;
Summit Properties

40% discount on high quality portfolio

Mkt Cap £491m | Prem/(disc) -39.6% | Div yield 1.6%

Event

Today's interim results have confirmed strong operational progress with Summit Properties on track to increase adjusted EPS by 20%+ in FY 2019. The portfolio is benefiting from strong occupational markets across its key cities which are experiencing very low vacancy rates. The accretive disposal of the Berlin property will provide capital to fund development opportunities within the portfolio. We forecast a three-year NAV CAGR of 12%. We believe the shares are highly attractive at a c.40% discount to NAV, particularly in light of recent M&A activity. We upgrade our TP to €1.58 (from €1.27).

[holts] 18/9/2019 19:38

Ta , Was a thought , but I think I bought VTA through them without messing about , must check.

[davebowler] 18/9/2019 17:37

I think it's because it's quoted in Euros.

[holts] 18/9/2019 16:19

Unable to buy any at all directly online , meets with request to submit order on selftrade every time , even as low as 100