ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

UKCM Uk Commercial Property Reit Limited

69.80
0.40 (0.58%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Uk Commercial Property Reit Limited LSE:UKCM London Ordinary Share GB00B19Z2J52 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.40 0.58% 69.80 70.10 70.50 70.80 69.10 69.60 2,317,620 16:35:24
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Real Estate Investment Trust 73.38M -222.33M -0.1711 -4.12 916.09M
Uk Commercial Property Reit Limited is listed in the Real Estate Investment Trust sector of the London Stock Exchange with ticker UKCM. The last closing price for Uk Commercial Property R... was 69.40p. Over the last year, Uk Commercial Property R... shares have traded in a share price range of 47.15p to 70.80p.

Uk Commercial Property R... currently has 1,299,412,465 shares in issue. The market capitalisation of Uk Commercial Property R... is £916.09 million. Uk Commercial Property R... has a price to earnings ratio (PE ratio) of -4.12.

Uk Commercial Property R... Share Discussion Threads

Showing 26 to 47 of 700 messages
Chat Pages: Latest  4  3  2  1
DateSubjectAuthorDiscuss
04/12/2008
13:44
Skyship,
Good discussion and of course I agree with the mathematics. Our divergence seems, therefore, to be the definition of "shareholder value."

You appear to say shareholder value = NAV

I believe shareholder value = total shareholder return = share price performance + dividends + any other cashback.

On anothre note, judging by the buy/sell activity its interesting to not the number of small chareholders. Whilst watching the trades I haven't seen a single large transaction go through.

ptolemy
04/12/2008
12:27
Ptolemy - agreed, we're on the same wavelength re the value to be found, we just disagree in the timing - that's what makes a Market!

Can I just finally say that I have total humility about my investment prowess, usually pretty good, but really caught on the hop by the severity of the decline in the tertiary oil sector - which is where all my losses are. The reason I say "guarantees increased shareholder value" is that it is 100% true. It is a simple question of mathematics, ergo:

1,000,000 shares in issue, net assets of £1,000,000 = NAV of 100p/share

Buy-in 100,000 shares at, say, 75p (or any figure that is at a discount to the prevailing NAV). Issued shares now 900,000, net assets now £925,000, therefore NAV INCREASES to 102.8p, ie UP 2.8%. Hence shareholder value increased.

I'm sorry, but buybacks work on the basis of simple mathematics when applied to NAV-based investments. Incontrovertible fact.

Of course, it can most certainly be argued that the Company should conserve cash and do nothing; but it cannot be argued that buybacks do not increase shareholder value when applied at a discount to prevailing asset values. It is why the Board sought our approval to do so....

skyship
04/12/2008
10:00
Dozens of IT Cos have done share buybacks.

I reacted cautiously to your note 31 because of your use of the 'G' word. You believe a share buyback guarentees increased shareholder value. I adopt greater humility in my investment approach.

What can they do with the cash?
1. Pay a special divi, 2. buyback shares, 3. take advantage of their position of strength to buy assets and to make the company bigger/stronger.

1 and 2 they can do anytime (assuming they have cash). 3 can best be done at times of market turmoil - such as now. If the can't find a better opportunity for the cash than buying their own shares, it doesn't say much about their competence as property managers.

Bottom line is we're on the same page. In the longer term it looks a good investment.

ptolemy
03/12/2008
16:10
PTOLEMY - Sorry, but I do believe that on this occasion you are missing the point. As I stated in Post No.28 above: "I know that buybacks have a chequred history, but for asset valuation investments such as property companies and investment trusts, they are a very sensible way of using market aberrations to increase NAVs."

Property companies and investment trusts are valued on the basis of Net Asset Value / share. As such, they are unlike the rest of the quoted trading companies which have been buying-up share capital; and then made to look foolish as the shares continue to descend, or plummet as in the case of the Banks.

As the Directors of UKCM stated earlier this year:

"It is the Board and Manager's intention to monitor opportunities in
the market carefully for investment opportunities and to continue
with the use of share buy backs through the utilisation of existing
cash resources and any appropriate debt facility to enhance returns
to shareholders."

Buybacks IN OUR CASE do exactly that - ENHANCE RETURNS TO SHAREHOLDERS.

I hope the Board took advantage of today's sell-off to hoover up some cheap stock; as I did....

Incidentally, you may well be right that we haven't yet seen the worse; however a further 15% property valuation decline from 30th September would give us an NAV of c.68p. So at 50p one is buying into a 26% NAV discount + a 10.5% Yield.

skyship
03/12/2008
15:36
Skyship, good points. I'm just not sure we've seen the worst. How many CEO have said your words in the last 12 months? Namely "buybacks at these levels undoubtedly can guarentee shareholder value"

There's an opportunity cost associated with spending you cash; if great opportunties arise they can't take them or need to need to borrow. Seems to me in this climate the strong should buyout the weak (or preferably, the best parts of the weak).

I'll buy when the market has a 'death plunge day' (if they haven't wasted money on a buyback!)

ptolemy
03/12/2008
14:33
No problem with your recommendation at all SKYSHIP, I too have been a buyer at these level`s and will continue to be so on any weakness.
Regards.

pip_uk
03/12/2008
14:22
PTOLEMY - "If I were UKCM I'd be much more concerned about preserving cash than using it to provide temporay support to the share price."

hmmm - seems to me quite clear that investing in property in the current climate cannot guarantee increases in shareholder value, whereas share buybacks at these levels undoubtedly can. At the last count (15th Oct'08)we had CASH reserves of £64m, so no-one reading the stats can possibly say that
there is any need to conserve CASH - remember UKCM is totally ungeared!

No. Buybacks must be undertaken when there is a perverse disparity between
the share price and the underlying NAV. That is why shareholders approved
the Scheme. There are times for buybacks; and now is most undoubtedly an
extremely good time. Though I suspect they won't be able to buy many, they
should certainly be attempting to do so.
===============================================================

Pip_uk - sorry I was a bit early with my recommendation elsewhere. Obviously
there is a liquidation firesale taking place, so the share price may remain under water for a few days - who knows. Personally I topped-up again @ 50p.

skyship
03/12/2008
09:09
If I were UKCM I'd be much more concerned about preserving cash than using it to provide temporay support to the share price. The fact they aren't doing it suggests they beleive matter will get worse before better. But that's no surprise, they said that in the recent statement.

There appears to be good value here at some point but I'm not sure we're there in the cycle....yet.

ptolemy
03/12/2008
08:56
I certainly have,bought a few yesterday and look forward to an interesting ride.
To find a property company that is ungeared must be virtually unheard of.
Strange old world, when things are motoring you tend to overlook this type of solid firm, and go for the high flyers,so it`s with thanks to you SKYSHIP for flagging this up.
Another good dividend payer is CHESNARA just thought it might interest someone with good divi`s in mind.
See you on MW`s.
Cheers.

pip_uk
03/12/2008
07:53
Certainly should. I just wish they'd take advantage of this second major dip to renew buybacks. I know that buybacks have a chequred history, but for asset valuation investments such as property companies and investment trusts, they are a very sensible way of using market aberrations to increase NAVs.
skyship
02/12/2008
21:34
Should be held as they have no debt and earnings cover on the dividend.
topvest
02/12/2008
11:26
Topped-up with a few @ 51.75p. Yld (if divi held) = a tad over 10%.
skyship
01/12/2008
15:25
Having sold out on the great rally back to 65p, I'm happy to be back in today @ 53.75p. Yield = 9.76%.......NAV discount, who knows, perhaps in the range of 25%-28%.
skyship
29/10/2008
13:40
This high volume really does provide a splendid opportunity to recommence the buybacks.

They have just 12.87m shares in Treasury after the last buyback on 27 November 2007 when they bought 450,000 shares @ 73.5p per share.

skyship
27/10/2008
14:35
Good luck Skyship. If that doesn't prove to be a good long term investment we're all in very serious trouble...
chopshs
27/10/2008
13:46
chops - topped up today @ 53.25p...
skyship
27/10/2008
13:16
Even though I've been bearish I can't believe how quickly this has fallen. With the share price at 52p, it's at a 35% discount to NAV (ungeared), with a 10% divi.
See SLI's IMS today for a comment on how bad things are. Have rarely read anything so gloomy from the horse's mouth.
I'm not buying but at this price I can see why UKCM might be perceived as good value. Agree they ought to start some buybacks.

chopshs
26/10/2008
17:27
Not Manu - thnx for that - certainly the property portfolio is a class act.

I see the following statement in the Apr'08 Finals:

"No further shares have been bought back since the period end. Your Board will continue to use share buy backs in future where it believes that it will enhance shareholder value while giving careful consideration to the Company's cashflows and development and asset management opportunities as they arise and will carefully monitor the effectiveness of the programme."

Wouldn't be at all surprised to see a few buybacks kicking in at these levels.

I also see that ADVFN have got the dividend yield wrong. Better to base yld projections upon 4 x 1.3125p = 5.25p. So the yield @ 56p = 9.4%. Having sold a few properties that could well reduce to 5.00p for a yld of 8.9%. Looks good to me!

skyship
26/10/2008
13:23
Anyone know whether this company has a website - must be one surely, but darned if I can find it!!
skyship
22/10/2008
14:41
It's about time the discount to NAV is increasing. Do like the ungeared balance sheet.
not manu
22/10/2008
10:53
I accept that lower interest rates are good for property but until such time as the banks are prepared to lend then it's a little academic. A few months ago I was also of the view that there could be a quick rebound as someone switched the light back on. However, I now believe the recovery will be slow. From a political point of view I expect the banks to be under more pressure to lend to the residential sector rather than the commercial one.
I monitor the sector for short term pricing anomalies and for the forseeable future reckon the only way to make money out of these things is to trade them (which isn't my normal investment style). I actually use UKCM as a proxy for the markets expectations of future valuation declines. As it's ungeared it's very easy to see and then provides a reasonable comparison for the attractiveness of the geared funds.
As a long term holding I'm sure you will be okay with UKCM at these prices but I suspect you will be getting an opportunity to top up at a lower level in the next few months.

chopshs
22/10/2008
07:41
CHOPSHS - I accept all you say, but believe that the bear story is already reflected in property share prices across the board - in many cases excessively so. Property sales are still achievable - see IERE today. The bull point is that interest rates are falling again - inc. LIBOR. As the trend is confirmed so the asset class will again be identified as attractive; and the light will switch on overnight, perhaps with the appearance of a large deal from one of the vulture funds.

As for UKCM in particular; my purchase is for a long-term holding in my SIPP and initially just with a 3% weighting. I will increase that should we see a fall back to the low 50s.

skyship
Chat Pages: Latest  4  3  2  1

Your Recent History

Delayed Upgrade Clock