Uk Commercial Property R... Share Discussion Threads

[skyship] 22/12/2021 08:07

FINALLY UKCM wakes up to the fact that borrowing at ultra-low interest rates and buying properties yielding 2-3x as much just may be a sensible strategy!

At 74.4p they are on a 21.3% discount - very high for them; so I suspect they will now turnaround - target back up to 80p:

[hugepants] 15/12/2021 12:20

It looks like cineworld is heading down the proverbial toilet. That's 3% of the rent roll.

[hugepants] 13/12/2021 11:57

Industrial acquisition from a couple of weeks ago.


So industrial/logistics up to 65% now. Add on the retail parks and that's about 80% in the best sectors.

On the downside they've about 8% in cinema based leisure parks. Rent collection may be tough going there for the next few months.

[nickrl] 08/11/2021 18:24

BoDs and inv mgr just have sit back and collect their fees why do they want to take a risk! Also all the big holders have been sitting there for years.

[hugepants] 08/11/2021 09:12

I think they need to up gearing to 20%+ before the dividend can rise to a decent level

[nickrl] 06/11/2021 15:29

HP solid update but naff divi on this one leaves me just watching it although given its large industrial exposure its surprising its on 20% discount to NAV. Good read across on retail parks valuation for the qtr should be good for EPIC.

[hugepants] 04/11/2021 09:03

Q3 update:


NAV +4.8% to 94.5p

industrial +7%
retail warehouse +6.8%
offices -2.7%

Net gearing 4.3%

[spectoacc] 25/10/2021 11:00

Thanks @HP. Missed that re retail. UKCM do look rock-solid, with the slight caveat of collection:

"Rent collection for the third quarter of 2021 (collectively the 24 June and 1 July, English, and 28 May, Scottish, quarterly billing dates) stood at 91% after allowing for agreed rent deferrals and including those tenants who have paid, by agreement, on a monthly basis. "


...Was the "2.5 visitors per year" that made me chuckle ;)

[hugepants] 25/10/2021 10:58

spec "retail" comprises retail warehouses and supermarkets. They've no high street retail now. I just added the value of the trafford retail park (in that well known city of TraffordCity) to get 13.5% total.
The alternatives are cinema based leisure parks and hotels/student accomodation.

[spectoacc] 25/10/2021 10:42

"Quality but boring" is how I've always seen UKCM. Not sure that very low gearing hasn't been a curse during the Covid recovery, as was the c.£122m of net cash on the BS. Very few bargains around.

Rent recovery not the best, nor is vacancy rate (tho as they pointed out, the biggest void was a property being held for sale).

Retail 10.7% as of 30th June - is that your "Alternatives"?

And did enjoy this typo in the Trafford Park RNS:

"Trafford Retail Park is well located in the heart of TRAFFORDCITY, one of the UK's leading retail and leisure destinations, and benefits from high traffic and footfall, attracting 2.5 visitors per year."

Agree that Industrials weighting is impressive, & should def give a NAV uplift next qtr.

[hugepants] 25/10/2021 10:19

This looks almost interesting now given the weighting to industrial/logistics. There should be decent NAV upside when the Q3 numbers are calculated. FYI after recent acquisition of Trafford retail park I estimate portfolio looks something like;

Industrial/logistics 62%
Retail warehouse & supermarkets 13.5%
Offices 13.5%
Alternatives 11%

Net gearing approx 5%

NAV 90.2p


Yield is currently only 3.5% but they've very low gearing and a lot of available cash to increase that.

[nickrl] 08/10/2021 22:56

Just caught up with interims on this and they are paying a dividend not covered at the cash level currently although recently purchase of Trafford Pk should bring it back into balance. share price dropping back moves the yield up a bit more to 3.5% so better value elsewhere but they do have a huge war chest to deploy.

[nickrl] 05/8/2021 09:31

Q2 NAV issued with positive upside of 3% with retail having a bigger uplift than industrials! Divi maintained at 0.644 leaving yield on a paltry 3.1%.

Another one with plenty of cash on the books but not finding anything to spend it on but only way to get the divi lifted up any further.

[nickrl] 23/4/2021 19:33

UKCM reported finals today and added in fith divi to cover REIT requirements for 2.7p for the year. Yield too low for me here at 3.1% with discount to NAV down to 11%.

They have nearly 17% of rent outstanding so potentially a beneficiary after moratorium ends although like most of our propcos they've done deals with many tenants to get lease extensions in lieu of rent.

[candid investor] 07/10/2020 18:32

At current share price of 70p it has lost 20p per share over the past 3 years but has offset part of it ( 11 pence in dividends ) i.e. a loss of 9p per share even after dividends over a 3 year period...this kind of return can be virtually replicated over 1,3 and 10 years...in other words, unless you managed to get in in April at 50p then you have probably lost money in it...money in the bank over 1 3 5 and 10 years would have had a higher return and risk free too..Has this been a consistently hopeless investment or am I missing something .. incidentally an ongoing management fee of 0.8% plus an extra fee for something else means that the only party to benefit from this reit is the fundmanager...avoid..

[spectoacc] 01/10/2020 08:45

Not sure there's a lower LTV tho - these are the last to go bust.

Bull case needs at least some of the missing rent to be recovered eventually.

[skyship] 01/10/2020 08:43

About to hit resistance at 70p, so may well short these.

They are of course an insti stock not a PI stock. Somehow the instis seem to accept the meagre 18.6% discount and miserly 2.5% yield. Bizarre.

[nickrl] 30/9/2020 21:25

Disappointing that they can only advise rent collection stats til end of August for a report dated 23/9. My usual concern around receivables which in this case are sitting up 45% on last report and represent nearly a 1/3rd of reported income. OK some of it will be rents moved to monthlies although what percentage is on monthlies isn't disclosed. There not short of cash and which gives a nett LTV of around 10% so amongst the lowest in the sector leading.

As EI says they've off loaded an income producing retail pk but have also managed to secure a lease on there biggest void to compensate.

Reduced divi is more than covered by paper income even if rental collection stays around 75% but an unexciting 2.8% yield.

[essentialinvestor] 21/9/2020 23:30

Interesting to look at their last sale of a retail park,
which benefited from an arguably strong range of tenants.

The issue I might have with that transction is then to chase
bid up assets in say logistics, which nearly everyone wants a piece of.

Are arguably fully valued logistics investments safer than a well let retail park, not so sure.

[nickrl] 06/8/2020 15:30

NAV update today with modest reduction due to large industrial holdings but rental collection on industrial only 86% not as good as SEGRO. Has 20% retail where most of the NAV damage comes from but reasonable rent collection of 70%.

Reduced divi maintained and limited scope to move it higher currently and at 2.8% yield theres a lot in the price already which is probably it has little interest on here.

[nickrl] 21/4/2020 12:50

One of the few remaining propco's still to put out an RNS on C19

[skyship] 06/2/2020 14:58

Doubt if there are any PIs wasting their time here on a 3.3% discount and 4.23% yield.

If there is still one stranded here & reading this - sell now and switch into AEWL on a 22.3% discount & a 7.5% yield. See all info on the AEWL thread.

[speedsgh] 06/2/2020 10:18

Net Asset Value at 31 December 2019 -

Dividend Declaration -

[skyship] 02/11/2019 16:56

UKCM a weak market as it reveals an NAV reduction in Q3’19. At 86.7p the yield is a mere 4.24%, so the share price likely to continue lower:

“NAV per share of 90.5p (30 June 2019: 93.2p), resulting in a NAV total return of -1.9% for the quarter with continued low net gearing of 17.0%.”