Uk Commercial Property R... Share Discussion Threads

[giltedge1] 15/8/2022 09:21

I too added couldn't believe on 11th when I checked market seller at 0.75 after such a positive update & special dividend announced. I prefer specials as hold in SIPP, so going forward 4% & rising base, + 1 - 2 % specials would be great. I have posted before in my opinion best REIT as modern portfolio, mainly industrial & based more in South East than others. doesn't have an unlettable tail as in other REIT's ie full occupancy & when vacant seem to relet quickly.

[catch007] 11/8/2022 13:51

Taken a small tranche today at 75.25p - Update shows rent collection firm, large discount to Nav and special dividend so worth a punt at these levels.

[spectoacc] 11/8/2022 07:31

Away yesterday, but realised the Phoenix holding may make buy backs impossible.

Assuming Phoenix aren't sellers, particularly at this discount - obvious enough from their continuation vote intentions - then atm they own 43 of every 100 shares.

If UKCM were to buy back say 10% over time (c.£95m at current s/p) then Phoenix would own 43 in every 90 shares, getting dangerously close to the 50%.

So Specials it is. How many we get, who knows, but even if the market is turning there's still buyers out there.

[nickrl] 10/8/2022 14:15

Sky yes oil has come down a fair bit but gas hasn't and its up again today at £4/therm today or FOUR times what is was this time last year. Then because of the way electricity price is set by most expensive generator (usually gas) its driving up electricity prices to stupid levels as well. So whilst many businesses smart and forward bought energy as those fixed terms expire they will be exposed to significant increases in cost of energy and then will have to raise prices to at least part compensate. So im not so sure we will get the big drop in CPI that BoE forecasts.

Difficult to see this not getting a lot worse before it stabilises but guess what happens with REITs depends on how much the new!! govt lends support to keep the economy from crashing if they even can.

[hugepants] 10/8/2022 13:46

You'd have to be a bit bonkers to be selling on this yield and discount. It can only be VIP?

[hindsight] 10/8/2022 13:05

I just doubled my albeit small holding here today, discount and LTV and it was get rid or increase as so small. Personally think inflation is embedded unless Putin is toppled, and no one knows the answer to that

[nickrl] 10/8/2022 10:20

UKCM and Phoenix have been inextricably linked since its creation as they moved properties out of its life funds into UKCM and took a big shareholding. The logic of why they did this im not sure.

I like the special over a buyback not that im in here anymore to benefit from it but how repeatable is it given the likely state of the economy next year?

Edit: I see they are still pedalling out the aRI view that inflation is going to crash in 2023 and base rate will be back to 0.1% by 2024 not that i believe the BoE are any better at forecasting mind you but 2nd order impacts are going to keep inflation high for 18-24myhs imv as cost of energy feedbacks into almost everything we consume be it food or discretionary spending.

[chris79] 10/8/2022 08:58

It does absolutely show the laziness and as said the cosy nature of phoenix that they would pledge to support continuation given the huge gain to be made by winding up and there hardly being a lack of other similar property investments

[spectoacc] 10/8/2022 08:22

It does. Little point in a continuation vote when it's stitched up in advance via a single shareholder. Where's the incentive to bring the discount back under control?

Been unimpressed with every ABDN manager I've spoken to - maybe it's become a grim place to work. Or else they've all been checking the price of their share options :)

[steve3sandal1] 10/8/2022 08:16

Agreed, but it is a start. The continuation vote is a dead duck but if we do at least get regular specials from capital gains the discount will surely close and people can effect their own continuation vote. As an aside abrdn not performing well on a number of fronts and I'm wondering if the Board also has the manager under review. Harsh perhaps but between the board the manager and phoenix it all seems a bit cosy.

[spectoacc] 10/8/2022 08:11

I'm for buy backs, but I knew UKCM wouldn't go for them, having talked to them. But the Special is a pleasant surprise.

Market reaction says it all tho.

The one plus of UKCM is the very low LTV & debt interest rate. NAV rise wasn't much, & they seem to lack the nimbleness of the likes of SREI.

[chris79] 10/8/2022 07:55

A near 2p special does not look good enough soon enough to address a near 50p discount to NAV

[spectoacc] 10/8/2022 07:39

We'll finally have a comparison to make for "Which is better - specials or buy backs" :)

Tho it'll be a tough comparison, with the XD drops UKCM is likely to have.

I see CTPT aren't messing around with theirs.

[skyship] 10/8/2022 07:36

Specto - I was going to post the same para; but see you were ahead of me!

If you annualise the latest quarterly dividend you get 3.4p pa. Add in the 1.92p Special and you get 5.32p. Yield on that = 7.14%.

How they arrived at 1.92p will remain a mystery; but UKCM can now be considered one of the high yielders whilst trading at a 34% NAV discount.

Would expect progress back to 80p in relatively short order.

[spectoacc] 10/8/2022 07:33

"•At 13.7% the Company's gearing continues to be one of the lowest in the AIC peer group which averaged 20% at the end of June. The drawn debt has an overall blended interest rate of 2.79% per annum, of which 75% is fixed rate, with a weighted maturity of 5.4 years and banking covenants that are well covered."


And something I didn't know - UKCM are obliged to hold a continuation vote due to trading at more than a 5%(!) discount:


"Accordingly, the Company will, in due course, be publishing a circular convening an extraordinary general meeting to consider that continuation resolution and the Board will be recommending shareholders vote in favour of the Company's continuation."


Subject to the usual stitch-up:
"The Company has discussed the upcoming resolution with its largest shareholder, Phoenix, which currently holds in aggregate approximately 43.4 per cent of the Company's issued shares, and which has indicated it intends to vote in favour of continuation."

[spectoacc] 10/8/2022 07:05

UKCM breaks for the border - the first to go Specials instead of buy backs.

"The Board, as noted in recent prior statements, is conscious of the significant discount on the share price to NAV. The Board is pleased to announce the payment of a special dividend of 1.92p per share in August to return some of the strong gains that have been realised over the last number of quarters from capital allocation and asset management initiatives so that all shareholders can benefit from the recent growth in net asset value that is not currently reflected in the Company's share price. The Board believes this type of distribution could be utilised in the future to reward shareholders, while still also keeping the option of share buy-backs under consideration."

[spectoacc] 19/7/2022 15:17

Certainly a general tendency for Boards not to give a damn about smaller shareholders - the worst being those who stitch things up with the largest shareholders only, then present a fait accompli (eg SGEM recently).

[steve3sandal1] 19/7/2022 15:07

That's so disappointing by UKCM. Imagine the AGM will require attendance but I've noticed a general tendancy anyway for Boards to answer a different question to that posed with a company commercial reply in online ones too.

[spectoacc] 19/7/2022 11:06

Had to put my questions in email form. Always better to speak to someone for the nuances.

They managed to address barely any of them in their reply, and I've nothing of interest to add on here.

[peckers56] 18/7/2022 15:51

Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
St Peter, Port Guernsey
GY1 3QL
Tel: [phone]

[spectoacc] 18/7/2022 15:26

Anyone successfully contacted UKCM before, Board or manager? The number at the bottom of the RNS's doesn't lead to who it's supposed to lead to, ABRDN (manager) are beyond useless having bounced me from pillar to post (Edinburgh to London). Even with holding quite a few UKCM it's proving difficult to speak to anyone.

[spectoacc] 04/7/2022 12:19

Indeed. Bought more today.

[hugepants] 04/7/2022 12:08

Share price heading straight down the proverbial toilet here. NAV discount now 33.5%.