F&C COMMERCIAL PROPERTY

Date: Wednesday 24 Apr 2013

LONDON (ShareCast) - F&C Commercial Property Trust achieved a total return on net asset value (NAV) of 4.4 per cent for 2012 driven by strong performance of its London portfolio.

The company made a 5.7% return on its portfolio of property investments for the year, compared with a total return of 2.8% from the Investment Property Databank (IPD) benchmark.

The portfolio recorded a top quartile performance over one year and top decile over three and five years within the IPD benchmark.

The share price total return during the year was 8.2% and the share price at the year-end was 103.7p, representing a premium of 5.0% to the NAV per share of 98.8p.

F&C maintained its dividend of 6.0p per share, providing a yield of 5.8% at year end.

"Despite disappointing UK economic growth and concerns regarding the Eurozone, the UK commercial property market in aggregate delivered modest total returns throughout the year," the group said.

Performance was boosted income returns and capital values moved lower during the year.

Central London shops and offices out-performed regional counterparts and prime property beat secondary. However, occupiers were cost sensitive and rental growth was subdued.

Investors remained cautious, favouring prime buildings, established locations and assets with longevity and security of income.

While all sectors weakened in 2012, the retail sector was most affected as a result of structural and cyclical factors.

During the year the company sold two central London properties including 84 Eccleston Square for £49.0m, and 385/389 Oxford Street for £28.1m.

Sales exceeded the most recent valuation, demonstrating a strong demand from overseas investors for Central London properties.

The company also exchanged contracts to sell Charles House, 5-11 Regent Street, London SW1 for £36.0m, compared with the last external valuation of £34.4m. The sale was completed this month.

“I am pleased to report that F&C Commercial Property Trust had a successful year in 2012, making good progress in a number of key areas,” Chairman Chris Russell said.

Maybe reason for recent rise.

http://www.dailypolitical.com/finance/stock-market/fc-commercial-property-trust-limited-pt-raised-to-2-05-fcpt.htm

As you can see SP only moved 7 points over the last 12 months so some sort of safety there. Don't buy it for any SP increase. I bought it for the dividend to re-invest in more shares and to protect my investment if that's possible.

Spain

Saw your post on GSK and went to have a look at FCPT.

The yield looks quite good and steady, but do you think there are any prospects for SP growth in the current market?

PS UT is an Uncrossing Trade and can be ignored for most purposes I think.

GLTA
CM

One of those 'UT' sell trades at close for over £1 million the reason?


Suppose this is just same as before:

Friday broker round-up UPDATE
Date: Friday 15 Feb 2013
LONDON (ShareCast) -

F&C Commercial Property Tst: Liberum Capital initiates with a target price of 109p and a buy recommendation.

Jdread, hope you don't mind the following question(s) but do you still invest here monthly or do you think IRP is a better place for your cash now the ftse is where it is?

I'm currently looking for a property play and looking at these two and swef and sli.

Hope to get a reply, but understand if ignored!

There you go. Nice, good yield on the buildings.

That's the seventh issue this year. It will be interesting to see what they are doing with all the money.

I hope buying some more property. Can't remember when the halls will be finished but could be for that as well.

Still buying and holding.

If you have no other property holdings, it is about time to buy them now, and this trust is as good as they come. I like the portfolio - well balanced and, importantly, spread about quite a lot.

...and there appears to be some scope to increase divis in both cases?

Well still going well, as is EAT. Will probably continue to do so, as long as interests rates are low.

Sell in May and go away?

Hold for now I think.

Great stuff.

IRP going well. Still around 8% yield over there.

I can't remember who the clever chap was but I think he said he made his fortune by buying too late and selling too early. Anyway, I hope he is in this one with us.
Like you I invest a monthly sum here in an ISA and am very happy with progress all of which is tax free. (two fingers up in the general direction of Mr Osbourne)

I'm surprised at that as I invest in it through F&C.
What are your thoughts on a correction?

I have been investing in these kind of trusts for about 20 years now and my strategy has been to invest monthly and to invest large chunks when the ftse has been 4500 or below and to take chunks out when the ftse goes above 6000. This is a simplification on the numbers of the ftse but you get the gist.

I am still of a mind to let it ride for now, but the exit is beckoning. My monthly investment will carry on.
Lol.

How did you make money? I never looked for the top or bottom. Some clever chap said that and it wasn't me.

I agree looks good will have a more indepth look on a personal basis, cant begin to recommend to clients though as it is classed as an Unregulated Collective Investment Scheme as it is not registered or regulated by the FSA, so it carries no FSA protection, No Financial Services Scheme Compensation, or any Financial Ombudsman Protection and Professional Indemnity insurers dont like to insure us against a claim,

So part of what annoys me is that i can find great investment opportunities but cant recommend them.

lol,

shame that its true in a lot of cases, re MERE i did look at that a while ago and I believe it a large holding in Premier asset managements unit trust of investment trusts, it also has similar characteristics to Axa Property trust in that its within its covenant and has a lot of exposure to europe.....

To be fair we are looking at our exposure to fcpt and we are slightly concerned that we are at a premium to the asset value.. so money could be made by realigning that premium to companies like mere etc, or dare I say it to a unit trust which trades at NAV....

But the argument for dividend yield and discount is what will drive these trusts forward..

another trust I looked at and still waiting to see full year accounts is the Tama european Industrial fund which has/had a divi yield of circa 10%

While on the subject of Below net asset value property stocks MERE is my top pick. They trade 67% below NAV, have 62% LTV on commercial properties, low vacancy and trading update due any day that could change sentiment as 90% of properties are in france, germany and netherlands that are all doing well thanks for china growth. Did i mention 8% dividend while we wait for the inevitable. its also isable and in 2-3 years we should be looking more like £2-£3 and in my extensive research did not find a more attractive company in the property sector to invest in.

Sorry IAG couldn't resist. Have you looked at European asset trust? Another great share to feed money into monthly.

Give a large one to an IFA.

Want to know how to make a small fortune?

As an IFA, I was overwhelmed with this share when the price had fallen to circa 60p with a NAV of 85p could not believe it low gearing high dividends and strong management, depressed due to investor sentiment and with strong sentiment that the property market will take off into 2011... My clients are loving this stock..

Would like to see the board take a bit of risk and gear the portfolio to hoover up some of the distressed assets out there..