(THG) Terrace Hill

Just wondering if anyone is aware of a recent NAV for Terrace Hill. Also any thoughts on the PE ratio which at 23 would appear high for a property share.

Anyone here to enjoy the ride?

Definitely a share that's so far off the radar it's not true. A couple of unexciting posts on the LSE and a pretty dead ADVN board.

Obviously a good time to be topping up here as at some time THG will get some big notice.

gl all

m

http://www.investegate.co.uk/terrace-hill-group-(thg)/rns/sale-of-residential-portfolio/201302081644085352X/

Just a little something to make your weekend that bit more special!

gl all

m

I am also a fan and like their work building supermarkets and university accommodation which has the potential to generate high and growing rental returns. Added to my holding at 15 p the start of the week.

The Julio

A good article in today's Inv Chronicle, on THG being very under-priced - against 26.8p of NAV, is the reason for the buying interest. Seems folks think THG should be more like 25p and that's before you take into account their rosy future...and also that over 60% of the shares are tightly held in one hand.

Still cheap.imo.

m

Thisis a very quiet board given the impressive performance of Terrace Hill in 2013.

This share has been quietly forgotten but has an interesting blend of property assets. They are unique in that they have residential developments, retail joint ventures with supermarkets and also an involvement in student accomodation.

In addition, they are not soley focused on one geographical sector but have involvements as far north as Sunderland and as far south in Portsmouth. The jewel in the crown is their development in Central London which will produce fantastic returns.

i've got my decimal point in the wrong place should be 0.28 and 0.26% .Not such a big deal then!

another 2.6% of the shares just traded in one lump, more director buying?

That's a unusually large trade for this share,probably a buy but as usual you shouldn't bet on it.
2.8% of issued shares so we probably will get to hear more about it.

Vg BUY write-up in last Friday's IC.

I'd be surprised if this doesn't now rise a bit more, from here.

m

Going forward it will be steady upticking at THG if today's positive RNS is anything to go by, imo.

http://www.iii.co.uk/investment/detail/?display=news&code=cotn:THG.L&action=article&articleid=8810217

m

That could be about to change.As somebody else has mentioned in the last few days (sorry forgot name) has anyone noticed the amount of directore buying this year...? caught me by surprise-its alot.The results are due this week and at a price of only 10p maybe now is as good a time to buy as any,just wish I had the spare funds......

Madoff Jnr

.....cheap.

This year the dirs have been paying up to 12.65p for large amounts of shares, inc FD.

m

Change of emphasis at Terrace Hill UPDATE
09 January 2012
Terrace Hill is winding down its residential property portfolio to concentrate on growing demand for new supermarket sites.
http://bit.ly/zFWzE9

A couple of shareholders have contacted the company today (one being my father) saying they had received phone calls from a party interested in buying their shares (with an improbable price of 58p being mentioned) and non existent warrants in the company (which the third party claimed expired in a few weeks). This is not the first time this has happened but the company is monitoring the situation and confirmed that they knew nothing about it beyond what shareholders had told them.

http://www.investorschronicle.co.uk/Tips/Buy/TipsOfTheWeek/article/20110527/1e08fd84-87bb-11e0-b922-00144f2af8e8/Terrace-Hill-takes-a-haircut.jsp

Created: 27 May 2011 Written by: Stephen Wilmot

Property developer Terrace Hill has made decent progress with its pipeline of supermarket projects. It expects planning consent next month on its sites in Sunderland and Whitchurch, both of which are pre-let to Sainsbury, and has reached pre-letting agreements on two further schemes. Demand for food retailing has held up even as other areas of the High Street have suffered, so these schemes should prove profitable. The problem is knowing when - chief executive Philip Leech admits the timing is "hard to predict".
None of this was reflected in the half-year results, however, which were marred by asset sales in its residential property joint venture. The company had been hoping to turn the portfolio into a unitised fund with the help of insurance giant Aegon, but demand for such a product turned out to be thinner than expected, forcing Terrace Hill to repay a tranche of bank debt by selling assets quickly, for £5.1m less than book value.
The debt profile was also improved by the sale of a large London office building in Victoria for £26.8m, and gearing now looks comfortable. Meanwhile, it is building a mixed-use development at another Victoria site, alongside a joint venture partner, with plans to launch into the booming west end office market in 2012-13.
House broker Oriel Securities expects full-year adjusted net asset value of 41p (48p in 2010).
TERRACE HILL (THG)
ORD PRICE: 23p MARKET VALUE: £48m
TOUCH: 22-24p 12M HIGH / LOW 27p 16p
DIVIDEND YIELD: NIL TRADING STOCK: nil
DISCOUNT TO NAV: 41%
INVEST PROPERTIES: £30.9m NET DEBT: 64%
Half-year
to 31 Mar Net asset value (p) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2010* 37.0 0.66 0.10 NIL
2011 39.0 -1.22 -0.83 NIL
% change +5 - - -
*Half-year to 30 April
Guide to the terms used in IC results tables.
More analysis of company results
More share tips and updates...
TIP UPDATE:
Buy
Terrace Hill has a number of promising schemes in the pipeline. The shares are well up on our tip (buy, 17p, 6 November 2009) but still trade at a big discount to adjusted net asset value. Buy.
Last IC view: Buy, 19.5p, 13 December 2010

Property plays

Created: 18 April 2011 Written by: Simon Thompson

Investors are starting to warm to the merits of several of the shares I selected in my bargain share portfolio a few months ago (Bargain shares, 11 Feb 2011) and specifically those in the property sector. In fact, virtually all my real-estate plays have had a good news story to tell in recent months and, with the potential for significant re-ratings, an update on these positions is urgently in order
First Property
Last week European property fund manager First Property Group released a bullish pre-close trading update, which revealed that assets under management (AUM) have risen by 20 per cent to £365m in the 12 months to 31 March 2011.
It's worth noting that the company has significant exposure to Polish property, so, although sterling's weakness is rather bad news for UK holidaymakers in Europe, it is very good news for First Property. In fact, around 75 per cent of those AUM are invested in Polish property and a further 3 per cent in Romania. In addition, the company manages and invests in a pan-European commercial property fund, Fprop Opportunities, which has so far made two acquisitions in Poland for a combined €25m. First Property also own two valuable commercial properties in Warsaw, one of which was valued last October at $18.1m, or £11.1m, based on a yield of over 8 per cent.
So, with sterling plunging by 4.5 per cent against the zloty and by 6.5 per cent against the euro since mid-February, First Property's real estate is benefiting from a strong currency tailwind. And that is hardly likely to change any time soon, with the European Central Bank firmly in monetary tightening mode and any chance of an interest-rate hike in the UK now far less likely after retail sales figures in March showed alarming signs of consumers retrenching.
By my calculations, if you mark the company's assets to market value, the shares are trading modestly above the book value of First Property's assets which means in effect we are getting a fast-growing property fund management operation - which analyst Chris Thomas at broker Arden Partners expects to make profits of around £3.1m this year - in the price for "virtually nothing". And there is also a decent 5.1 per cent decent yield on offer, based on a 5 per cent increase in the full-year payout to 1.08p, which Mr Thomas predicts. The board can certainly afford to raise the payout as it would be covered twice over by EPS of 2.18p.
So it's hardly surprising that the Aim-traded shares have started to be re-rated, rising 14 per cent to 21p, since I advised buying at 18.5p nine weeks ago - a price that was readily available at the time. But they are still too lowly rated on nine times March 2012 earnings estimates of 2.36p a share and, underpinned by a decent and growing yield - and benefiting from exposure to a robust Polish property market - I continue to rate them a strong buy ahead of the full-year results on 21 June.
Terrace Hill
UK property development and investment group Terrace Hill has made three separate residential sales worth £41.4m in its 49 per cent-owned residential joint venture in order to fund the next 18 months' amortisation requirements under the joint-venture's banking facilities. Although the transactions were priced £10m below aggregate book value, this still leaves potential upside from almost £200m of assets held within the joint venture. On balance, the deal looks sensible to me.
In addition, Terrace Hill has secured two notable new lettings at its office scheme in Maidenhead, generating annualised rent of almost £0.5m. A global pharmaceutical company and Seagate, the hard-disk drive and storage solutions provider, are renting a total of 19,000 sq ft of space at a headline rent of £26 per sq ft, which indicates there is still demand for quality space even in the tough Thames Valley lettings market.
Shares in Terrace Hill have moved also moved up 12 per cent from 20.5p to 23p - calculated on

Should tighten up tomorrow and edge up a few pence.

Terrace Hill was one of 10 stocks tipped in Simon Thompson’s ‘Bargain shares for 2011’ column in the IC today.
Several have risen by 10% or more.
I'm not invested, but just looking.

Valuta


Investors Chronicle
Bargain shares for 2011
Created: 11 February 2011
Written by: Simon Thompson

Randall & Quilter, Polo Resources, Ambrian Capital, Terrace Hill, First Property Group, Shore Capital, Victoria, PV Crystalox Solar, Nobel Investments, Pilat Global Media.
http://www.citywire.co.uk/money/friday-papers-updated-with-share-tips-from-investors-chronicle/a470609?ref=citywire-money-latest-news-list

This has been overlooked for a long time now, but with relatively few shares in issue a little buying pressure could see the decent rise it deserves.
IMO it is massively undervalued at this level and when it does start I think it could move up quick.
Been in here for over a year now but my own personal target price is 50p by early 2012.
Good luck all -
VT

Tried to buy when the market opened. The maximum that the MM's would allow is 7,500

The 'new' half year ends on Thursday. Perhaps there's another trading update due soon.

Some selling today by a number of investors - 134,481 and 4,864 through PLUS - but prices appear unchanged.

If it drops it'll be time for a top up.

http://www.iii.co.uk/articles/articledisplay.jsp?article_id=10095015&section=Planning

Terrace Hill (THG) [21.75p/£46.10 million]

We have attended a management presentation of Terrace Hill, the quoted property group. The company reported in March its prelims for the year to 31 October which shows the group is through the worst having previously suffered a 22.7% fall in adjusted NAV however the ship stabilised in the second half of last year.

THG has refinanced its debt and it now trades well within it covenants. The group is split into three areas. Firstly, a 49% stake in a legacy portfolio of almost 2,000 residential units with a gross value of £238 million, £13.5 million of net debt.

Secondly, a 75% stake in a land bank in Scotland of which 69% of the land is awaiting planning consent. And thirdly, and very much the jewel in the crown is the commercial portfolio with a particular expertise in out of town retail development for food retailers.

A recent typical deal was the purchase of an option for £10,000 over 5.25 acres of land in Helston, Cornwall on which THG obtained planning consent for a Sainsbury's supermarket resulting in a sale of the land to Sainsbury's (SBRY) for £10 million giving a profit of £5.8 million.

Quite wisely, the strategy of the group now is too focus on the commercial division and it's looking to spin out its residential portfolio into a separate fund and sell down the land bank as planning consents are obtained.

As at 31 October 2009 the adjusted NAV per share was 44.6p (and prices have risen since then) and with an estimated another 12p from a further five committed food sites and a possible 8p from four sites in legals we can see the discount reaching a staggering 33%. This share is about to climb the hill very shortly.

Deutsche Bank getting on board with a 5% holding must be good news - do you think they took heed of my ramblings? The mention that Deutsche Bank are on board certainly moved the share price today.

Hopefully, other people have taken my ramblings seriously and can see the logic in them. This share is still way too low - mind you, I’ll be saying that when they hit 30p. Of course, because it is true. The NAV at the year end (31 October 2009) was 44.6p and if it has increased by a mere 5% since then it will mean that the NAV is now about 46.8p. The SP being still less than 50% of the NAV!

What I’d really like to know is at what discount (or premium) to assets other property companies are selling.

It’s unfortunate that we, and prospective investors, know nothing of what was said at the AGM especially as a presentation was made to analysts on the same day.

Nobody wants to share the good news from the AGM. They've topped up but not given us the chance to make a few quid. How foolish can they be?

To reiterate from my post of the 19th:

“About time this started to motor. If it sold at a 30% discount to historical (they have started, albeit slowly, to rise) Net Assets then the SP should be on its way to 30p not languishing at a measly 20p."

Mention of how our property stock is rising and by what percentage will enable us to monitor the NAV and estimate what the SP should really be.

For example, if Terrace Hill were selling at a discount of 30% then the share would be around 28p. Add to this an as yet 'undeclared' rise in NAV of 5% then the share's real worth will increase by a small amount. Of course, if the NAV should decrease then the share price would again fall. Fortunately, property prices have 'bottomed' and are again rising - unfortunately, not as quickly as they fell.

Unlike many other quoted property companies, Terrace Hill has a first class management team and a possibly unbeatable business model.

The shares are selling on at pathetic price, which can only go upwards.

i was thinking that myself

Some strong buying today perhaps by attendees of the AGM.

Did any members of this bulletin board attend the AGM?

Good news yet to be announced is usually mentioned. It would be interesting to know at what rate the company's properties are rising following the year end.

If anybody attended, please share what was said with us.

Perhaps there'll be good news in a trading update following the end of the half year later this month.

M

A well-run company with a first class management team selling at around half Net Asset Value! Ridiculous!

About time this started to motor. If it sold at a 30% discount to historical (they have started, albeit slowly, to rise) Net Assets then the SP should be on its way to 30p not languishing at a measly 20p!

nice to see over 20 p short term break out recent valuations over 40 p
thinking of buying today as i have watched over last week
imho

Nice large buys today ticking us up.

the arse feel out them

Yes there were more sellers than buyers

almost 10% (2p) down at midday anyone have any ideas what's happened for this to fall so much today??

Terrace Hill moots fund launch

http://www.growthcompany.co.uk/news/1204623/terrace-hill-moots-fund-launch.thtml

There are no loans in place measuring on an aggregated basis loan to value ratios. A number of loans have loan to value covenants based on the value of the assets secured against them and where required, these have been amended or removed entirely. Again, we believe this is further evidence of our relationship banks' continued desire to support the Group.

sorry - really tired this morning

i should pay more attention lo

If you are "brave"
http://www.growthbusiness.co.uk/news/smallcap-spotlight/1204623/terrace-hill-moots-fund-launch.thtml
*
http://www.bfnnews.com/display/?id=3797225&sectionId=standardNews

1)I am pleased our TNAV increased in the second half of the year and we have been successful in creating value through development. I look forward to further TNAV growth and am confident that we can generate strong returns for our shareholders over the medium term
2)All Group and joint venture and associated undertaking debt that required re-financing in the period has been agreed. The banking climate has been challenging and I am pleased with the achievements we have made and that our bank financings are on a sound footing.
2010 will see these regain the 2008/2009 losses in SP to some extent. certainly see nearer 40p this year.

These are results the year to 31 October 2009.
since then the IPD index has increased so we will have an increase if done now. We are 5mths on from then.