This property trust is now trading at a 7.5% discount to the last reported NAV which is unusual for a property trust and unusual for UKCM which also is among the lowest geared for the sector. Yet sellers are still appearing. Strange. Wonder if the fund managers are going to launch a share buy back programme or make a tender offer for the shares to improve/enhance ratios and NAV per share. Shares are tightly held by a few big institutional holders so little liquidity and I guess that a few trades can have a significant impact on the market. But even so a 7.5% discount and a covered yield from rental income currently at 4.6%.....
"UK COMM PROP (LSE:UKCM) Â is managing to track ahead of the market. While its share price volatility isn't the most exciting, it has tended prove reliable over the years. In the event of the share trading above 92.65p, we tend expect near term ..."
The good news in the prelims was the increase in NAV to 73.1p. Yes, the dividend cut was unwelcome, but the dividend had been uncovered for ages and was always vulnerable. And when you compare the small premium in the current price to the NAV against other property companies (F&C Comm Property, F&C UK Real Estate), this is starting to look good value.
The Board announces a move to a more sustainable dividend policy of 3.68p per annum equating to 0.92p per share per quarter, a 30% reduction to take affect from May. This underpins the Company's portfolio strategy, whilst still providing an attractive yield of 4.8% (based on share price as at 30 January 2014);
I have just posted on the PCTN board re Liberum recommendations and seams similar issue here
Since February they have a Hold (4 times) on a 68/69 price recommendation about 10% below the SP when these people publish meaningful projections I can only see this going up, Not much but Certainly worth holding given present divi
Doom and gloom merchants will tell you to stay clear. Money is filtering back into the market with people fed up with low interest. Here we have no gearing, high yield and in my opinion a bull market. I'm staying put.
Hello foolish learner: I just liked what I saw by way of assets, revenue and performance. I have enough comparisons in mind when evaluating. These will include similar companies and yields available elsewhere. This link might help you. Good luck.
iii list this share under Real Estate on its Fundamentals tab, great to see its gone up circa 5% over past few months, but unfortunately any comparison to its sector is not practical on iii as they dont list Real Estate under its various Sectors on the Research tab
How do others see the rise in comparison and why the rise given the fairly flat retail markets and lack of any positive news
Hello jw1. From actions taken I would expect this to improve in the current year. If not a modest cut in the 5.25p is likely. This is an income play and my current intention is to hold - but I might change my mind! Thank you for posting though. d
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