U And I Share Discussion Threads

[horndean eagle] 26/4/2018 14:02

HAve to admit results were pretty good. Finally they seem to be delivering. They seem to be getting shot of their retail portfolio and moving to urban schemes. The mood music on that front is exceptionally strong as per TEF and given UAI have a fair few schemes to come it should mean further progress.

[carcosa] 26/4/2018 13:52

Typically with such a large discount to NAV it would be preferable for a share buy back programme to be initiated.

[speedsgh] 26/4/2018 13:37

The following comment in today's results stood out to me...

"We continue to review the method by which capital is returned to shareholders and, after consultation with our top twelve shareholders, the Board has concluded that a supplemental dividend currently remains the preferred option of return. This will be reviewed again by the Board over the course of the coming year."

Why do they feel the need to review again over the coming 12 months? Would the board prefer share buyback vs special dividend? Are they trying to persuade major shareholders to change their preference?

Richard Upton currently owns 3m+ shares so would have thought he would prefer return of capital via special dividends, which for me is certainly far more preferable.

[scburbs] 26/4/2018 13:01

Speedsgh, Agreed 30% seems very harsh given these results and visibility on future gains.

Results presentation is on website for anyone who hasn't seen it.

hxxp://www.uandiplc.com/~/media/Files/U/U-And-I-PLC-V2/results-and-presentations/2018/prelims-presentation-260418.pdf

[speedsgh] 26/4/2018 12:51

@carcosa - re your #1076...

£47-66m vs their stated FY19 target of £45-50m. Underpromise and overdeliver works for me :o)

[speedsgh] 26/4/2018 12:49

@carcosa - Thanks for posts 1052/1062. Very interesting.

Worth noting that UAI are a corporate client of Liberum as are most of the others that sit in the most bullish quadrant of their FY+1 total returns vs Spot P/NAV diagram.

[carcosa] 26/4/2018 12:46

2019 H1
Bryn Blaen 6-8m
Charlton 2-4m (sold April 27/18)
Mixed Use Scheme A London 5-7m
Other (8) Proj 1-2m
Sub Total 14-21m

2019 H2
Curzon 4-7m
Harwell 4-6m
Kensington 5-7m
Preston Barracks 2-3m
Wind Farm 10-12m
Others (8) 8-10m
Sub Total 33m-45m

Total 47m - 66m (avg 56.5m)

Investment portfolio not included

Note that again H2 weighted

[speedsgh] 26/4/2018 12:33

scburbs - Seems our posts crossed :o)

Hopefully the 30% discount to NAV will now start to reduce over the coming weeks. Another update by Simon Thompson (Investors Chronicle) ought to help, although we may have to wait for the seller to clear before seeing any meaningful progress. Aimho

[speedsgh] 26/4/2018 12:28

Good news re Charlton Riverside. However AFAICS, according to today's results announcement, the disposal was forecast to represent a £2-4m trading gain towards a target of £45-50m in the current FY19. Comment by Richard Upton in the announcement on the disposal suggests that the gain is towards the upper end of guidance so £3m+. Not major but a good enough start to the year.

Disposal of Charlton Riverside for ?58 million -

U+I (LSE:UAI), the specialist regeneration developer and investor, in partnership with Proprium Capital Partners, announces the sale of their holding at Charlton Riverside in Greenwich for £58 million in line with the upper end of guidance for 2019.

Acquired in 2015 for c.£27million, a combination of the Greenwich area's increased popularity and the adoption of the Charlton Riverside Masterplan which designated the area as suitable for residential-led development, led to several approaches from interested parties and the resulting sale to a housing association.

Richard Upton, Deputy Chief Executive of U+I, said:
"Charlton Riverside is a great example of what U+I does best. Through astute off market acquisition, promotion and consolidation of land at Charlton Riverside we have facilitated wider regeneration in the area, driving productivity, jobs and housing. The approach from a housing association committing to a target of 40% affordable housing was particularly compelling for us and we believe they are best placed to bring this forward. With this sale U+I realises gains at the upper end of guidance.

[scburbs] 26/4/2018 12:26

Charlton Riverside looks like its been a great project, but its only worth £3.5-4m extra profit on top of the £7.5m they booked in these results.

Overall a great set of results, the most positive for some time, surprisingly muted response.

[asturius101] 26/4/2018 12:11

yes, makes no sense.

[hedge fund harry] 26/4/2018 12:11

No-one is talking about the other great piece of news released today.

U+I (LSE:UAI), the specialist regeneration developer and investor, in partnership with Proprium Capital Partners, announces the sale of their holding at Charlton Riverside in Greenwich for £58 million in line with the upper end of guidance for 2019. Acquired in 2015 for c.£27million,


So the current year is off to a great start as well. It was a mistake releasing this news today because it has been lost in the final results news.

[mikett1] 26/4/2018 11:59

Who in their right mind would sell this with an 18p dividend paid within the next 6 months?! It's a hugely undervalued growth stock with income higher than any income stock!!

[spob] 26/4/2018 11:40

there were lot's of sellers when I was buying at 140p :)

and no doubt there will be lots of sellers at 250 and above

[renewed1] 26/4/2018 11:36

Surprising the amount of selling after such good results!!

[asturius101] 26/4/2018 11:36

it's a little silly to sell now with all signs pointing to a breakout with a huge special div just over a month away!!

[orinocor] 26/4/2018 11:02

I'm not claiming to be Sherlock Holmes but I think the small rise in the share price can be explained by the holding announcement on the 19th April that showed Aberdeen Standard Life had reduced from 6.93% to 4.99%. They are most likely still selling down.

[wynmck] 26/4/2018 10:06

Peel Hunt reit's Buy and ups tgt to 250(230)

[fozzie] 26/4/2018 09:41

It does seem to be an under the radar share this one. I've held for a few years now and am up around 10% excluding divs. Been hard to sit on hands and leave investment alone when so much other stuff was flying, particularly last year.

[spob] 26/4/2018 09:36

Thanks

not sure how they are calculating epra nav

Personally I estimate the true value here at nearer to 4 pounds than 3

[spob] 26/4/2018 09:09

I can't access the Liberum note on the RT website

Does it give "EPRA" NAV estimates going forward over the next few years ?

[carcosa] 26/4/2018 09:00

HFH, hopefully following the Liberum note today that will start to improve. Perhaps there was concern that revenues will be very lumpy going forward but the inference from the Liberum note is that there is 10 years of visible profit potential. When doing a comparison of other similar companies UAI is astonishingly cheap on just about every metric.

[spob] 26/4/2018 08:57

Anyone have the full Liberum note ?

[hedge fund harry] 26/4/2018 08:40

17.9p of dividends to be collected in next 6 months
Net assets 303p
Why are the shares not over 250p