Telford Homes Share Discussion Threads

[shaker44] 19/2/2018 10:16

Thanks Hillow. I didn't realise wjg are exposed to future rentals. Probably ok but certainly a risk factor.

[hillofwad] 19/2/2018 09:29

compnews1

Yes high barriers for entry help TEF but they laid down £30.2m unconditionally on Cambridge Heath Road which has probably cranked up £100k interest

They know the score with LBTH but even they must be suprised how difficult it has been on the planning front

The difference between TEF and WJ is that when TEF ship the scheme off to the institutional investor the day the construction completes they are off the hook on any residual liability= low risk
WJ are now having to offer up themselves up by guaranteeing the rent thru their management company so are on the hook for the annual rent and will suffer from any letting voids which might or might not occur

[compnews1] 19/2/2018 09:18

Oppositions need to be seen to do something, regardless of whoever is in the government. Assuming the current opposition becomes the government in the next general election, they still face with the COMMON problem - that is shortage of housing stocks. They then will need to resolve the issue, ie allowing more planning permissions. One needs to see this through this when investing. Telford & Watkin Jones have a a less risk strategies because some of theirs investments are forward funding by other large institutions.

[hillofwad] 19/2/2018 09:13

llf

Council elections in May which probably means councillors are sitting on the fence which doesn't help

The 3 councillors who represent the ward of Lansbury where Chrisp Street is the main event didn't even show up at the committee meeting .Disgrace

TEF suffering at Cambridge Heath Road with LBTH too This is a site which had a planning brief way back in 2003.Sainsbury's have just had their scheme close by kicked back by planners 3 times .Steffy was hoping to be on site this year on site having already put £30.2 m hard cash down .No sign yet on planning register so no doubt problems with planning

Javid then has the neck to tell developers "Use it or lose it" when local politics are the biggest imepediment

[llef] 18/2/2018 13:34

hillofwad - my post 2543 asked if the issue highighted below could cause a problem for Telford

"Local authorities in Camden, Vauxhall, Lambeth and Westminster are all facing growing opposition to their housing plans. One property industry figure said pressure was building against development in “every” Labour-controlled borough in the capital."

It seems as if the answer is YES - sadly...

[hillofwad] 17/2/2018 11:56

Chrisp Street proposals kicked into touch for deferral on Thursday despite officers recommendation as the angry brigade sway the lightweights committee who clearly don't read the script. Affordable element increased . 10 years on the drawing board and seven figures in costs incurred by TEF as they work professionally thru proposals over the last 18 months making amendments consulting with all and sundry dealing with the minutiae.




Millions of pounds of investors money have arrived in the area including M&G at Carmen Street with a large affordable element whose tenants would be attracted by the proposed offer at Chrisp Street with its night time offering

Khan wonders why London does not have enough Housing! Its clear that the planning committee members need to be brought up to speed on planning issues-they don't seem to understand the script!

[speedsgh] 16/2/2018 14:02

A very interesting piece in today's Times on how the rental market is undergoing fundamental change. Discusses trends in BTL vs BTR and the range of facilities/amenities offered in many new schemes. Brief mention of TEF...

The start of a British rental revolution -

"Greystar’s luxury rental development in Nine Elms, south London, in partnership with Telford Homes, will have 894 apartments and provide a “five-star rental experience”, including residents’ lounges, bars and restaurants, an observatory deck and a business hub."

[phillis] 04/2/2018 19:24

Chairman was happy to build up a large stake
Cant sell it all at once so bit by bit perhaps

[james188] 02/2/2018 17:12

The chairman still retains a very large stake in Telford, so I am very relaxed about this sale. TEF's share price has been pulled down by general market sentiment on house builders and some ill judged comments from Govt along the lines of clobbering builders for land banking. They would do better to focus on trying to reduce the cost and time it takes to secure planning consents (whilst maintaining proper scrutiny), particularly in London where the likes of TEF are tackling complex brownfield sites, many of which are a complete eyesore in their current state.

[phillis] 02/2/2018 16:39

nice vote of confidence from the Chairman
Not!

[llef] 01/2/2018 16:04

article in the FT today headlined "London developers face growing activism over affordable housing"

extract below

"Local authorities in Camden, Vauxhall, Lambeth and Westminster are all facing growing opposition to their housing plans. One property industry figure said pressure was building against development in “every” Labour-controlled borough in the capital."

Could this be a problem for Telford in future developements?

[compnews1] 01/2/2018 09:24

Hardman &Co produceda 52 pages report on UK REIT, Telford was mentioned on pages 44&45. I don't know how good their analysis but worth a read. Link below
Key points : 1)A major change – BTR forwardsales are 77% of the total and upfrom zero two years ago; 2)Telford’s pipeline of sold developments is higher than the sector and the ratio is growing; 3)BTR gross margins lower with lower pricing; 4)Return on equity higher – cashgeneration is high; Telford is working with the ‘bigboys’; US based Greystar; Revenue share of BTR for 2016/17 was 26%, up from 8% in the prior year; 6)Low gearing set to rise with reinvestment; 7)Gross margins falling as formerinflation drops out and with shifttoward a higher capital-turn BTR mi
Investor chronicle also recommended Telford. I think their porfolio is more balanced withstand the market and regulartory risks much better


hxxp://www.hardmanandco.com/docs/default-source/newsletters/homes-for-investors-article---hardman-co---november-2017.pdf

[muscletrade] 29/1/2018 20:25

Jock...nope, but I know a man who does.
call and ask them (or TEF directly)

[shanklin] 29/1/2018 17:33

Aah, thank you.

[jockthescot] 29/1/2018 16:07

Jones Lang Lasalle. selling agents

[jockthescot] 29/1/2018 15:26

You got links into JLL muscletrade?

[muscletrade] 29/1/2018 14:42

speed.....over 80 NGQ reservations made in HK over the last few days.

[speedsgh] 23/1/2018 08:40

TEF are advertising their New Garden Quarter development in Stratford in the South China Morning Post...

New Garden Quarter: building a community in East London's powerhouse -

[v11slr] 13/1/2018 10:10

Same here, I was astonished.

[seans66] 13/1/2018 08:31

Believe it or not, but the divi arrived on the correct date in my barclays account. First time ever!

[pillion] 03/1/2018 14:30

Good find Speed

[speedsgh] 03/1/2018 13:52

From Simon Thompson's article today on housebuilders...

Alpha alert for housebuilders -

"My final play is London housebuilder Telford Homes. It’s proved a cracking investment with the share price rising almost 50 per cent since I spotted the potential less than 18 months ago ('London property trading play', 22 Aug 2016). I last advised running profits at 397p in the autumn ('A trio of small-cap plays', 16 Oct 2016), since when the share price has risen 8 per cent to 420p and is now heading back towards the May 2017 high of 439p. I reckon there is a decent chance of a chart break out.

The company continues to de-risk its £1.5bn plus development pipeline of 4,000 new homes by entering into build-to-rent funding arrangements with large institutional investors, while at the same time targeting the lower end of the London property market where there are chronic housing shortages. This strategy de-risks the forward sales pipeline, accelerates profit recognition, drives a higher return on capital as Telford no longer needs to fund these developments, and reduces gearing levels as capital is released from its land bank and working capital.

Indeed, chief executive Jon Di-Stefano noted at the recent interim results that Telford is bang on track to deliver pre-tax profits in excess of £40m for the 12 months to end March 2018, having secured over 95 per cent of anticipated gross profit already. Moreover, it has already secured two thirds of the gross profit needed for pre-tax profits to exceed £50m in 2018/19. Rated on less than 9 times Equity Developments EPS estimates, falling to 7.6 times 2018/19 forecasts, priced on a miserly 1.2 times March 2019 forecast net tangible assets, and offering a 4 per cent prospective dividend yield, Telford’s shares rate a trading buy with a chart break-out on the cards. Buy."

[chrisb1103] 03/1/2018 13:37

Breakout brewing here i hope £5 won't be too long away. And that's still cheap :-)