Urban Exposure Share Discussion Threads

[williamcooper104] 29/10/2019 00:16

Any idea why the share price tanked today Bought into this a few months ago when the divi yield looked just too tempting - but then sold out reinvested in SWEF Tempted again - at least to look

[williamcooper104] 29/10/2019 00:11

Banks under new slotting regime really struggle with development lending, banks are also, often, far harder to deal with than a loan fund If all goes well it's possible to get a 15 unlevered return - so if you can gear that at 90 percent (which is what 75 loan to end value is) then it's attractive Bank all in costs are less than 10 - but they will be c5-7 - and for less leverage - c65-75 loan to cost

[williamcooper104] 29/10/2019 00:07

They can get loan IRRs of 8-10

[williamcooper104] 28/10/2019 23:48

Any idea why the price plunged today

[picnic] 26/9/2019 22:19

Cloverleaf 374 could be an interesting shareholder.The co was only set up mid Sept
And seems to be owned by The Right Hon......Wellesley who has companies in the same arena as UEX.See if they pick up the Soc Gen shares.

[picnic] 20/9/2019 18:21

Something up?Robert Tchengiuz takes a 6m share spread bet .He joins an exotic bunch on the share register like Cloverleaf 374, Soros,Penwater Cap,GLG,Societe Gen,Invesco,
Inter trade Ptd Gibraltar and L&G.

[ntv] 13/9/2019 07:38

jonwig
I am guessing your right

Financial Review

Overall revenue of GBP5.3m is predominantly derived from fair value gains on
loans deployed on balance sheet. Our goal is to use our balance sheet as
efficiently as possible while also providing us with capacity to execute
loans quickly, before these are subsequently transferred into our asset
management business. To date asset management income has been modest but as
we grow our AUM, and more loans are deployed, this higher quality stream of
earnings should generate a greater proportion of our revenue.

[jonwig] 12/9/2019 12:53

NTV - is cash receivable the same as loands receivable in current assets?

[ntv] 12/9/2019 12:42

jonwig /SteMis The more ST recommends the more chance of some winners and some losers
All about risk I guess I am the same
Agree house builders will be self funding so maybe is leveraged US builders over here or something like that as KKR are involved, Nearly wrote KKK!!
The leverage on this one must be huge, I wonder what will happen if all the customers ask for their deposits back
They say the potential pipeline is huge and might be @ legals but not sure why overheads are increasing so rapidly either . You would have thought a few guys in a small office could do the same work.
Couldn't see cash receivable as a separate item in a/cs. Is that included in turnover?
I certainly wouldn't put my hard earned cash here despite the yield
Be a good one too short in a recession though so put it short monitor list for the mo
I think I will stick to companies with cash in the bank, very low debt or gold for the moment

[jonwig] 12/9/2019 12:01

Hi, SteMiS - well, you've named two (ie. not many) and he's very prolific, which I guess is a fault. He also dives into just about every sector of the market, which not many do, and I think is spreading himself too widely.

[stemis] 12/9/2019 11:51

ST has a reasonable track record and doesn't make many really bad calls

You mean like NBU and CAMK?

[jonwig] 12/9/2019 06:49

NTV - I guess because the banks don't lend like they used to: I think there was something in the prospectus about this.

I'm not clued-up on the housebuilding sector, but I think most of the quoted ones have decent balance sheets and can self-finance their developments. I'd think any builder who would pay UEX's rates would be a risky proposition, despite their "Never had a bad debt" claim.

ST has a reasonable track record and doesn't make many really bad calls, but this one doesn't look right.

[ntv] 12/9/2019 06:40

Why would the developer not go to their bank and borrow some more cash instead of from this company?
Surely a developer would work out their costs before committing to a project and to finance prior to starting work?
It looks like some sort of highly leveraged scheme to me like the stuff they were doing prior to the last crash. Maybe I have got it wrong. Has anyone else got any thoughts on it?
costs will be £12.5m by year end

[ntv] 11/9/2019 21:39

Never had a bad debt?

[ntv] 11/9/2019 21:39

I don't understand how their business model works. They were trying to borrow @6.5% and then lend it out
What sort of rates do they charge to make a profit after all their costs?

[f15jcm] 11/9/2019 14:34

Read Simon Thompson's tip (who I do respect). Thought it sounded too good to be true. The CEO offloading 1 million shares in May confirmed as much. I consider this uninvestable until the CEO makes a sizeable purchase.

[jonwig] 11/9/2019 13:07

It's possible he's right, as they have the earnings reserve to pay the proposed dividend of 5p. But ongoing earnings are surely unlikely to cover it, given the H1 loss.

Any company with £47m net cash in the bank can go on paying so-called dividends for years.

This may be a great bargain, as he says, but that suggests the "market" has been wrong in halving the share price and refusing it a retail bond issue.

[jonwig] 04/9/2019 14:44

@ jbacroftr - the last 43 posts, I guess! (It's worth reading back for information.)

[jbarcroftr] 04/9/2019 14:37

P/ E of 5 forecast divi of 10% what am I missing

[jonwig] 11/8/2019 05:35

It doesn't square with what they write in their admission document, does it?

The Urban Exposure Business was established in 2002 as a residential developer, responsible for thedevelopment of 5,500 units between 2002 and 2009. In 2005, the core business evolved into a primarylender to the residential mortgage market. Its focus further shifted in 2009 to providing finance in respect ofresidential development projects in the UK through loans and managing those loans through the drawdownstages to completion.Since 2010, the Urban Exposure Business has arranged approximately £687 million of development financeloans to best in class residential property borrowers, without incurring any losses or arrears.

[amarka] 10/8/2019 21:43

The Company does not believe it will have an impact. Share price down 5%. Company showboating and end of year financials don't add up. Something is wrong and the share price plunge reflects this. A lot of good talk, but no end product.

[amarka] 10/8/2019 21:43

The Company does not believe it will have an impact. Share price down 5%. Company showboating and end of year financials don't add up. Something is wrong and the share price plunge reflects this. A lot of good talk, but no end product.