Mr Return
12 Oct 2017
Re: Inflation linked dividends? Hello ! Glad to see that I am not the only one watching FCPT. Great dividend stock and I imagine slightly lower than average risk due to large tenant base. I do not see BOE interest rate rise beyond 0.5 -0.75 over the next three years from the current level. It is simply unaffordable to serve more state debt. I reckon that in 1,2,3 years dividend yields of 3% will be the top of the range and therefore I do see a bit potential upwards for FCPT over the next 5 years. 180 - 200 in 2022 perhaps + yearly dividends - that is a very nice savings plan it seems. Nice drop today to 145.5 ! I am buying some more. I wonder whether FCPT moves up back to 147/148/149 over the next two weeks again for investors to secure the dividend? Everyone who has sold today and does not really need the cash will have to think where to invest the money again...I also hold HICL and CNA. Do you have a few more recommendations ? I am also looking at "megatrends" and am speculating that car parking stocks might be more in demand since all the electric and self driving cars will need to be charged and maintained somewhere in city centres. Large car parking providers might become the petrol stations and service stations of the future = added business. Has anyone an opinion on that thought ?RegardsMr.
percentagegain
12 Oct 2017
Re: Inflation linked dividends? I hold for the dividend. I bought a significant dollop of these 6 months ago when the share price was around 5% lower than currently. In that time, any upwards swings in share price seem to be driven mainly from an increasing premium rather than a growing NAV.Not sure there will be much capital growth in these for c12-18 months. Sadly, the income squeeze pushing up all dividend paying assets means that FCPT isn't as safe an investment as it used to be. But then if you are looking for income, I'm not sure if there are any relatively safe assets out there at the moment.
devonplay
12 Oct 2017
Re: Inflation linked dividends? I purchasesd after the Breixt vote and when prices started to recover.I dont have much in this, but I've been happy to hold, but not add yet.If we get some bad news I might add more, Ive been making cash for sometime, and so in many I'll be waiting on development towards the end of the year/early '18 before adding.I like the fund, believe it's well run and the porffolio has lots of defensive qualities.Myself I run a broad portfolio c50 stocks and invest monthly, but having a range gives me the oppotunity to add on weakness. That's what I'll be doing with this one. I recently added CNA, HICL and RUS (on less weakness).Political risk can be an invetors best friend if you can wait.DL
Mr Return
12 Oct 2017
Re: Inflation linked dividends? I bought in again at the 146 - 147 mark and will just hold it to get 4% dividend yield. Has anyone else any thoughts on FCPT ? 
Mr Return
26 Jul 2017
Re: Inflation linked dividends? Hello All,FCPT had a good run albeit on seemingly quite low trading volumes.NAV gap to Market Captalization is widening a bit and the dividend yield may drop below 4% soon.Central banks are hinting possible increases in interest rates in 2018, more importantly QE will stop in autumn 2018 in the EMU which may push overall rates up so very slightly. I just sold hoping to buy back at 133-139. What are your views? Do you expect investors to take some of the cash off the table to realize capital gains?
Mr Return
10 Feb 2017
Re: Inflation linked dividends? Hello Triceratops,Firstly, thank you very much for compiling your recommendations ! I was meaning to answer a lot earlier but got caught up in a few matters of urgency which are now resolved.I like your style and you obviously put a lot of thought into your investment structure. You seem to have found a way to balance things out and that allows you to sleep well at night.I feel that I do have a similar approach in some ways, where I differ is fixed income investments in terms of corporate / government bonds, if I understood you correctly.Taking a look into the future: I expect marginal interest rate rises 0.5 – 1 % on the short end and 1-2% for 10 year bonds for the next 1-3 years. The inflation however will be galloping soon, I think mainly due to imported inflation in the UK. The BOE and other central banks will thoroughly enjoy that and tolerate inflation to burn state debt. That is my best guess, anyways. Brexit and Trump turmoil and not to mention a EU breakup cannot be fully discounted. Brexit will have a medium negative impact on the City and real estate, I fear.Your portfolio appears to cater for it by high infrastructure exposure and high yields but appears to be very focused on UK investments and real estate perhaps?Similar to you I am looking for higher yields and a proper dividend cover, ideally with some upward potential.Some boring but lucrative stocks I hold:Munich Re - superb dividend and cover track record. They rather let a deal go in case it is to hot. Biggest Re – insurer in the world. Downside if stock is in ISA since corporation tax is not being reimbursed. Intentional exposure to EURO.Allianz – Global insurance power house. Has capability to force up insurance premiums annually. Downside if stock is in ISA since corporation tax is not being reimbursed. Intentional exposure to EURO.L&G – Apart from high DIVI it is in itself a fund and reflection of the FTSE250 just without the cost for a fund. Divi cover is questionableAXA – again same as above, French leader. Intentional exposure to EURO.The above is very very insurance heavy which is not healthy in itself. However, slightly rising interest rates and their proven ability to raise premiums above inflation should make this reasonably stable. CTY – instead of a fund.FCPT – I really like that stock. Monthly! Dividend, very broad geographical spread in the UK. Good mix. I was quite concerned about their investment park in Aberdeen which is let to OIL exploration companies when oil was 30-40$. This looks a bit more stable again. St. Christopher’s Place is let to high number of tenants. Good retail units in Solihull. Div cover needs to improve though in near term. Also it is very small + small trade volume. No dividend increase either.More niche and capital gains motivated rather than dividends driven:Wirecard – low dividend but a good story. Key player in online and retail payment service provision. Very large global and extremely rapidly growing customer base. There were some deliberate fake news spread to cause the stock to take a dive. ( quite interesting ) Unfounded in the end and a reason to buy. I see this as a megatrend and long term bet.BBiotech – if you desire some exposure to the highly lucrative world of Biotech BBiotech is essentially an early investor into promising Biotech companies. I see this as a megatrend and long term bet.Berkshire H. – Uncle Buffet made huge infrastructure investments in the USA in recent years ( railways ) which should do well. If all goes pear shaped he will buy in cheap – if he is still around that is. Essentially an accumulating investment fund in the US market without a fee. Succession has been taken care of already by a young lady who can run the show for the next 40 years. Intentional US $ exposure.Fidelity Special Situations - China - not without controversy , perhaps I should sell before Trump starts proper trade war with China.I
triceratops
16 Dec 2016
Re: Inflation linked dividends? Hi Mr R,Always happy to share investing ideas. I have an "inflation linked pot" which I allocate around 15% of my ISA to. The idea is that either the income the investments provide go up in line with inflation or the asset value does. I have around 30% in fixed income and the rest in equities.Main categories for me are;Renewables, dividends go up inline with inflation. The main risk with these kind of investments is retrospective government action which may cut subsidies going forward. BLUEFIELD SOLAR INCOME FUND LIMITED (current yield about 6.8%)GCP INFRASTRUCTURE INVESTMENTS LIMITED (current yield about 6.1%)JOHN LAING ENVIRONMENTAL ASSETS GROUP LIMITED (current yield about 5.9%)I've also got my eye on TRIG (yields 5.7%) though not bought that yet.Infrastructure funds, availability based infrastructure such as hospitals, social housing, schools where the government/council pay inflation linked cash flows. Currently yielding around 5%JOHN LAING INFRASTRUCTURE FUND LIMITED HICL INPP infrastructureAircraft leasing (this is a bit more tenuous as the coupons are fixed, but the theory here is that the residual value of the airplane will fluctuate with inflation, provides a good headline yield but these are quite risky in that the residual value of the planes are a big unknown)DORIC NIMROD AIR ONE LIMITED (running yield 7.9%)DORIC NIMROD AIR THREE LIMITED RED ORD PREF SHS NPV (running yield 8.3%)DP AIRCRAFT I LIMITED (running yield 7.2%)Pure REITS; (4.1% to 4.7%)TRITAX BIG BOX REIT (storage)SECURE INCOME REIT (retail)BRITISH LAND CO (London office space)There are lots of others REITS, I've got my eye on Empiric Student Property (ESP) which provides student accommodation but I suspect there is a bit of a bubble in this sector so will hold off for the short term. Would be interested to hear what kinds of things you have gone for.Tops
Mr Return
12 Dec 2016
Re: Inflation linked dividends? Hello triceratops,you mentioned below that you hold other REITS and investments with a steady increase in dividend over the years. I am looking to spread investment into other dividend rich and "safe" stocks. Do you mind sharing your favourites list with us?Thank you. Mr.
My name is Bond James Bond
01 Dec 2016
Re: Inflation linked dividends? The dividend is only 87% covered. The higher exposure of FCPT to London and the SE relative to other property trusts provides for a lower rent roll relative to assets. FCPT have said that it is an aim to fully cover the dividend within the next 5 years. I personally prefer property trusts that have fully covered dividends or, in the case of relative market newcomers, the prospect of fully covered dividends once the cash drag is fully invested. Nice to have monthly income but a portfolio with a spread of property trusts and investment trusts generally can offer this anyway. Regar
Slamming Sammy
18 Nov 2016
Re: Inflation linked dividends? Good point, does seem a bit odd as presumably their rent roll has increased but presumably if not paying out as divis then will be increasing their net assets as retained reserves?
Slamming Sammy
18 Nov 2016
Lucky we stayed the course! Looks like we're approaching historic highs - glad we didn't panic Mr Mainwaring! Any thoughts about likely direction?
triceratops
28 Oct 2016
Inflation linked dividends? Could anyone explain why this fund has been paying a 6p annual dividend since 2006 with no uplift for inflation?I like the idea of regular dividends and have several other Reits and infrastructure,renewable funds which increase their divi each year. This one doesnt seem to...Am I missing something here? Thanks in advancetops
Mr Return
27 Sep 2016
Trade watching FCPT up for month end? I had a day off today and spent some time following FCPT throughout the days trades. What was noticeable is that in the morning there appeared a very very low volume of trades , sometimes just a few hundred pounds of completed deals managed to shift this 1 Billion £ stock. Until lunchtime the total £ trade for this fcpt stock was around 300.000£ . A few limited buy orders dropping from 125 to 123.5 and some sales seemingly shifted the stock downwards. Remarkable.presumably that shook some day traders out? In the evening volumes picked up. In Total below 1 Mio £ of trades for the day. I reckon that when the dividend gets paid this friday which should be around 4 Mio £ in total then the pieces I picked up for below 124 can be sold for 126+ ? I guesstimate that at least 1-2 million of that dividend are automatic reinvestment? I presume there are no statistics available on this?I have been holding the stock for years and seemingly the automatic dividend investment price is always that little bit higher?Any thoughts anyone?
Stepenwolf
06 Jul 2016
Re: Stick or Sell ???? Thanks Trivaskus. It seems to me that the rental income is fairly safe, AND there is no pressing need to sell the properties as this is not an OIEC/Unit trust and so at least no pressing need to panic sell and add to the conditions for the self-fulfilling prophecy of a fire sale. With the discount it seems to be turning into a BUY - what do you think? OR am I delusional?
Dingledangle
06 Jul 2016
Re: Overblown?! I am assuming a worse case scenario of a technical recession next year and a crash in London property prices. Whatever happens the ripple effect will cause companies to stop hiring, expanding and rents will stagnate or fall. I have liquidated nearly every property investment I have with the expectation of buying back in 6 months time at much cheaper levels. This is one Trust I still hold. The monthly income is useful but I can't help feeling it will be possible to buy back much cheaper soon.
