Unite Share Discussion Threads

[maddox] 07/8/2015 13:10

Hi WO,

True, also there can be no certainty that other sectors will be unscathed by a rise in interest rates. Consumers spending will undoubtedly be hit - with highly leveraged mortgagees the worst affected. This is likely to filter through to all sectors of the economy.

Further, it is worth noting that student accommodation was the best performing asset class during the Global Economic Crisis. So, on a risk/reward basis the defensive characteristics of Unite are compelling.

Cheers Maddox

[wirralowl] 06/8/2015 17:28

Thanks for your detailed reply, Maddox. Its a question I guess many investors are asking themselves, where to be invested, once interest rates start to rise? Certainly investments that can continue to grow dividends above inflation will be more attractive than fixed income and with student demand only increasing (ref: the recent Telegraph article), and debt levels perfectly manageable, UTG shouldn't have too many issues continuing to achieve this.

BR,
WO

[eggbaconandbubble] 06/8/2015 12:41

Bit of a ditty in The Times today - 'Buy for the long term'
i don't think there was any mention of the land they have at Wembley next door to Quintain's lot.

[maddox] 05/8/2015 16:42

Hi WO,

Ok an interesting question. On the assumption that rates rise only gradually and not to the extent as we used to have - say to 2.5% max then I don't see foresee any significant effect.

My rationale: Clearly, a rise in interest rates will reduce real returns, however, capital needs to find a home. Will a rise in base rates disproportionately affect student accommodation and favour other asset classes? No, all asset classes will be affected with the exception of gilts. Gilts will obviously be more attractive but they only really present the investment case that you will be losing your money less quickly.

If an investor is looking for an absolute return will they find a better risk/return elsewhere? I don't think so, the underlying characteristics that the market has now come to appreciate in student accommodation will remain in the medium term.

Happy to be challenged on this hypothesis.

Cheers Maddox

[wirralowl] 05/8/2015 14:19

Hi Maddox,

I ask myself the same question regularly too, lol! They've been on my watchlist forever now, I guess I always convince myself that they're due a big pullback, which just hasn't happened. I also have interest in a couple of student property REITs, namely, ESP and DIGS so don't want to become over-exposed to the sector.

With specific regard to UTG, I worry slightly about premium to NAV, but this is in keeping with many other property companies and it is still growing very nicely. Income is the key ingredient for me though and it still lags my own target for investment(though their progressive policy is a big plus!). If I do purchase UTG, it'll more than likely be in a SIPP rather than an ISA, for this reason.

Going forward, do you feel that impending interest rate rises will have much impact on the company? I'm presuming with the pent-up demand for student accommodation it shouldn't have that great an effect, but would welcome your thoughts....

Cheers
WO

[maddox] 05/8/2015 13:30

Hi WirralOwl,

Yep a sparkling results and a very positive outlook - seems to have pleased Mr Market up 11.5p to 655p as I post, can't imagine why you haven't gone for some shares as well?

Cheers Maddox

[wirralowl] 05/8/2015 12:31

Hi Maddox,

Just checking in, but pleased to see UTG producing another excellent set of results.

As you know I'm a UTG bondholder, so these results make me inclined to add more, especially if we get the much-touted bond sell-off in wake of the start of rising rates..

In case you hadn't seen it already, here's a very positive article on UTG :



Regards
WO

[maddox] 05/8/2015 08:40

It was clear to me that these results would be good, but these exceed my expectations, these are excellent. The headlines:

'EPRA earnings up 45% to £29.6 million (30 June 2014: £20.4 million)

EPRA earnings per share up 30% to 14.2 pence (30 June 2014: 10.9 pence)

EPRA NAV per share up 20% to 521 pence (31 December 2014: 434 pence) equating together with dividends paid to a total return on opening EPRA NAV per share of 22.1% (30 June 2014: 6.1%)

On track to achieve like-for-like rental growth of 3.5% to 4.0% for the full year, up from 3.3% for 2014

Average portfolio yield compressed by 47 bps in the first six months to 5.8% (31 December 2014: 6.3%) and further compression expected over next 18 months

Interim dividend increased by 150% to 5.5 pence per share (2014 interim: 2.2 pence). Policy remains to distribute 65% of full-year recurring EPRA earnings by way of dividend each year.'

I am particularly pleased to see the transformation towards income generation as the business matures.

Regards, Maddox

[maddox] 13/7/2015 20:47

The expected re-rating of Unite's assets has shown-up in impressive first-half portfolio revaluations.

"Joe Lister, Unite Students Chief Financial Officer, commented: "The demand for high-quality, well-located student accommodation, together with rental growth, has resulted in an 8.5% and 12.5% like-for-like increase in the values of the USAF and LSAV property portfolios respectively during the first half of the year. The yield compression has been supported by a strong operational performance with reservations already at 86% for the forthcoming academic year."

This effect should be further magnified when reflected in the NAV as the gross asset inflates but the debt remains unchanged. So, the H1 headline figs to be reported on the 5th August should make for some excellent headlines.

Regards Maddox

[leeson31] 02/6/2015 08:15

...."UNITE Group plc (LON:UTG)‘s stock had its “overweight” rating restated by research analysts at JPMorgan Chase & Co. in a report released on Monday. They currently have a GBX 700 ($10.70) price objective on the stock. JPMorgan Chase & Co.’s target price suggests a potential upside of 12.18% from the company’s current price.".....

[leeson31] 01/6/2015 08:16

looking good, just a few pence more to go, and in theory should see a surge. I'm aiming for ~660p-~675p in peak of expected rise, initially.

[mike740] 22/5/2015 12:27

UNITE Group plc’s “Add” Rating Reiterated at Numis Securities Ltd (UTG)
May 21st, 2015 - 0 comments - Filed Under - by Thomas Dobrow

Numis Securities Ltd reissued their add rating on shares of UNITE Group plc (LON:UTG) in a research note released on Tuesday morning. They currently have a GBX 657 ($10.34) target price on the stock.

UNITE Group plc (LON:UTG) opened at 620.00 on Tuesday. UNITE Group plc has a 1-year low of GBX 388.30 and a 1-year high of GBX 626.00. The stock’s 50-day moving average is GBX 594. and its 200-day moving average is GBX 519.. The company’s market cap is £1.25 billion.

A number of other analysts have also recently weighed in on UTG. Analysts at Jefferies Group reiterated a buy rating and set a GBX 610 ($9.60) price target on shares of UNITE Group plc in a research note on Monday, April 27th. Analysts at JPMorgan Chase & Co. raised their price target on shares of UNITE Group plc from GBX 610 ($9.60) to GBX 700 ($11.01) and gave the company an overweight rating in a research note on Wednesday, April 22nd. Analysts at Stifel Nicolaus reiterated a buy rating and set a GBX 593 ($9.33) price target on shares of UNITE Group plc in a research note on Tuesday, March 24th. Finally, analysts at Oriel Securities Ltd reiterated an add rating on shares of UNITE Group plc in a research note on Wednesday, February 25th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of GBX 640 ($10.07).

The Unite Group plc is a United Kingdom-based Company. The Company is engaged in the development and management of student residential accommodation in the United Kingdom. The Company acts as co-investing manager of four specialist student accommodation vehicles that the company has established, as outlined in the table overleaf.

[dr kuntz] 19/5/2015 20:24

Deary Me Leeson

I thought you were bankrupt, glad to see you about.

[leeson31] 19/5/2015 18:33

Mine seems disabled as no twitter icon.. But i may look into twitter.

Cheers

[mike740] 19/5/2015 17:25

Ill take a look at that Leeson31 post 448.

Yep that blue button above next to last post nos all you do is click on it and you can transfer your post and and anyone elses that look interesting to all your twitter followers.

Massive platform up there now for the stock market plus you get news and analysts news/ broker comments through far faster than the norm.

I strongly recommend signing up, if your not there already.

[leeson31] 19/5/2015 16:59

Didnt know that was even possible lol. Cool. Cheers.

[mike740] 19/5/2015 16:58

Hope you dont mind Leeson31 just transfered your chart above to my 4,500 twitter followers through the tweet button above.

[leeson31] 19/5/2015 16:57

Go long on zirtek!! :) and hedge it with vitamin D. :)

[mike740] 19/5/2015 16:55

Well and truely on the next leg up now Leeson31, 700p will do me but I think theres a lot more than that left in it.

Will have to see if it hits the ceiling of the channel and breaks through.

Nice to have a stock that isnt up down and around around, this market is volatile at the moment.

Having said that Ive allowed myself to get lop sided on my folio with too big a % of resource stocks.

Strange Im usually very strong on the management side.

I blame it on the Hayfever LOL.

[leeson31] 19/5/2015 16:42

top of channel range ~700p / ~2 months


free stock charts from uk.advfn.com

[leeson31] 19/5/2015 16:39

already broke out on the line chart at ~600p, but today the share price closed higher than the recent candle chart high >>


free stock charts from uk.advfn.com


hence, a technical candle chart breakout...

roll on ~660-700p :-)

[leeson31] 19/5/2015 12:46

22 Apr JP Morgan Cazenove Overweight 623.25 610.00 700.00 Reiterates

[mike740] 18/5/2015 18:30

New leg up yes, Leeson31. 700p will do me.

[leeson31] 18/5/2015 18:06

My apologies Wirral. I misread the results and got the exdiv date wrong. I basically flicked thru the results and recalled the date and amount wrongLol

Thx for the clarification.

Thechart does appear to be commencing a new upwards range now. Id have thought 660p would be achievable inthe first instance but perhaps 700p thereafterwards. Solid stock and trend.

I first put this on my monitor when the share price was sub 10per in may 14.

Cheers

[wirralowl] 18/5/2015 16:59

Leeson, its the ex-dividend date where you would usually see any adjustment (drop) in price and in this case it went ex-divi on 23/4 for 9p. The payment date of a dividend shouldn't have any affect on the share price.