Watkin Jones Share Discussion Threads

[adamb1978] 08/8/2017 18:11

Very belatedly went through the interims - again solid, and the company still feels well placed with decent long-term drivers. Also, compared to other companies which journos/analysts might compare them to in laziness, there doesnt seem to be much downside to these guys in the event of a downturn. Forward selling developments removes a lot of balance sheet risk, they have net cash as it is, and I would argue that student accom should be relatively solid anyway.

Valuation isn't cheap but I could see these growing by 7% - 10% for a number of years to come, in which case you could argue that it warrants a multiple around 20x. I think they suffer from a discount to that given that they could easily be tarred as a cyclical construction company.

Last point, the 'Build to Rent' part isn't contributing as yet and that could easily be a large addition to the bottom-line within 2-3 years.

I've held for a year or so and hopefully will still be doing so in many years to come!

[marisotter] 08/8/2017 16:08

......rofl..


......there's nothing better as a (large) holder than being proved wrong :)....

.....why do some people feel that we need to know that they have .......a ....huge...lunchbox?:)...

.is this relevant?...or maybe...they think it carries more weight?..

[santangello] 08/8/2017 15:58

Lol.....my post wasn't meant to read as a poke....mearly an observation....and there's nothing better as a (large) holder than being proved wrong :)

[gswredland] 08/8/2017 15:49

Stand corrected

[santangello] 08/8/2017 15:03

Nothing like a breakout yet, and I don't see one coming without a positive RNS.Stuck in a narrow trading range till next results, and fair value where it is for me.200p bid would need to hold for any next leg to be confirmed.

[gswredland] 08/8/2017 13:32

Yes Dave looks like it. Fingers crossed

[panic investor] 08/8/2017 12:49

just bought back in here after a few weeks out. My concerns were over cladding etc but nothing seems to have materialised which is good.

[quepassa] 08/8/2017 12:33

That's good. Through 200p on the bid. An important psychological hurdle breached.


I used to invest heavily in Quintain Estates which was taken over last year. Quintain were getting increasingly involved in PRS.

Quintain just secured a £65 million loan from the HMG Home Building Fund for a massive dedicated PRS scheme

hXXp://www.building.co.uk/quintains-wembley-homes-get-funding-boost/5089075.article

That's a major PRS scheme of 6,800 homes for rent and underscores the need and appetite for this type of scheme which the government is prepared to support.

I hope that WJG ups its already impressive game and starts looking at bigger PRS schemes and taps into the Home Building Fund significantly to further add an edge to its PRS ambitions, alongside its business model of pre-sold smaller projects.

hXXps://homebuildingfund.campaign.gov.uk/

Not sure that Watkin-Jones has the balls to go big but timing would be perfect to gear up and push the envelope on PRS.


ALL IMO. DYOR.
QP

[davemac3] 08/8/2017 12:26

about to breakout?

[rivaldo] 01/8/2017 13:44

WJG are busy, busy, busy - another Belfast scheme just announced, this time Build to Rent:



"Belfast 'built-to-rent' apartment block announced
By John Campbell
BBC News NI Economics & Business Editor
6 hours ago

A developer has announced plans for Belfast's first large scale "build-to-rent" housing scheme.

It is a model where flats are built purely for private rent, with the building owned by a large investor.

It has been encouraged by the UK government as a way to increase the supply of rental properties.

Lacuna Developments and Watkin Jones are planning to develop a 19-storey block of flats on Academy Street, close to the Ulster University campus.

The same firms have been among the biggest developers of purpose-built student accommodation in the city, selling their student schemes to major institutional investors.

The Academy Street scheme would consist of about 120 flats run by a management company.

Mark Watkin Jones of Watkin Jones said build-to-rent was a "proven model" in other major UK and Irish cities.

etc"

[rivaldo] 31/7/2017 09:07

RNS this morning - good to see Octopus Investments increasing their stake, going above 4% with 10.29m shares:

[rivaldo] 27/7/2017 13:46

News that WJG are seeking planning consent for a new Build to Rent 165 apartment block in Sutton:



"26th July
New twenty storey tower block proposed for Sutton containing 165 apartments

Plans have been submitted to build 165 new homes in blocks as high as 21 storeys in the centre of Sutton.

Developer Five Nine Living has applied to build on vacant land at Sutton Court Road, less than 150 metres from the station and High Street.

If accepted ten studios along with 77 one bedroomed, 68 two bedroomed and ten three bedroomed apartments would be available for rent.....

..... Five Nine Living, the applicant for the block, is a part of Watkin Jones Group which aims to develop Build to Rent accommodation across the UK.

They said they are “keen to secure consent at the earliest opportunity so that development can commence and new homes be delivered in Sutton”.

Manchester and Leeds are two other cities in the UK where Five Nine Living have developed rented apartments.

etc"

[rivaldo] 19/7/2017 07:28

News, as WJG have bought another planned student housing scheme in Belfast with planning permission - and forward sold it:



"Belfast student housing scheme bought by new developer
17 July 2017

A planned student housing scheme in Belfast has been sold to a new developer.

The site at Little Patrick Street received planning permission in October 2016, following an application by UniCiti LLP.

It has now been sold to Lacuna Developments and the Watkin Jones Group.

The joint venture partners have developed other student schemes in the city.

The Little Patrick Street project currently has permission for 354 student studios in an 11-storey building.

Sold to investors

A revised planning application proposes to reconfigure the scheme and increase the number of beds from 354 to 430.

Watkin Jones and Lacuna have also secured an institutional investor to "forward fund" the scheme.

That means the investor pays now and gets control of the building on completion.

Watkin Jones/ Lacuna developed Belfast's first major purpose-built student scheme at John Bell House in the city centre.

They are currently working on two other schemes at the Athletic Stores building and on the Dublin Road.

They have forward sold all their schemes to institutional investors, including a fund managed by the Swiss bank UBS."

[its the oxman] 18/7/2017 08:17

Ntbr results today worth a look if you like building related plays. Dyor.

[quepassa] 14/7/2017 06:34

100% performance from 100p to 200p in a year is fantastic.

Much more to come over time.

Patience will reward handsomely.


ALL IMO. DYOR.
QP

[davemac3] 13/7/2017 22:14

£2 looking a tough nut to crack

[jonwig] 13/7/2017 09:01

4% fall in university applications:



On the supply side, the FT has reported about oversupply of accommodation in some areas. Suggests to me that the forward pipeline for WJG is peaking, as institutions become less keen on the asset class. But there's still PRS and traditional housebuilding.

[douglas fir] 04/7/2017 09:39

Residential building continued to outperform
commercial work and civil engineering in June.
Moreover, the latest rise in housing activity was
still
the second
-
fastest since December 2015.

hxxps://www.markiteconomics.com/Survey/PressRelease.mvc/9f748a4200ed45fdbc4bc25c843c5f91

[quepassa] 01/7/2017 09:17

Just to clarify.

WJG gets two separate significant mentions/articles in the IC this week.

1. The Simon Thomson feature, page 15., where he upgrades Price Target to 225p and says "run profits"

2. Share Tips columns. Page 40 article headed "Watkin Jones' low-risk model" citing the Bull Points of

Low-risk business model
Strong pipeline
Expanding into Private Rental Sector
Debt free

The article stamps a BUY rating/recommendation on WJG.



ALL IMO. DYOR.
QP

[leafysuburb] 01/7/2017 08:11

You can't fail to be impressed with the growth in the share price this year.

Its a simply a terrific play on burgeoning need for student accommodation.

dyor etc

[jonwig] 30/6/2017 11:14

peters - most of the article describes the firm for those not familiar with it.

It does give Peel Hunt's estimates for 2017 and 2018: eps of 13.4p and 15.1p, with dividends of 6.6p and 7.3p.

Unfair, I think, to post the whole article.

[petersinthemarket] 30/6/2017 10:40

Link is no use unless you are a subscriber

[rivaldo] 30/6/2017 08:34

Cheers EC and jonwig - here's a link:



"Watkin Jones' low-risk business model

Watkin Jones (WJG) was established way back in 1791 and has been building student accommodation since 1999, but only floated on the Alternative Investment Market (Aim) in March last year, having abandoned its construction contracting activities a year earlier. Since then it has come along in leaps and bounds - a reward for being in the right place at the right time."