yorkists
20 Jan 2015
Re: Yield matters An informative comment, as always, I couldn´t find the short data on British Land for comparative purposes but is 5% "heavy" for a property company?? I have money in PHP as I prefer the NHS backing, and the short term nature of HSTN leases has to be a concern. But that PE still seems too low.
yorkists
20 Jan 2015
Re: With an increasing focus on Germany well according to Digitallook, the EPS is shown as 6.8p giving a PE of about 15, with projected EPS rising EPS, whereas BLND has EPS of 31p this year hence PE of 25. So I think the numbers are correct. The projected EPS figures 2 years down the line? Both companies show about 15% growth. With property companies the yield is obviously more certain several years down the line and in a fear-driven world of 0.5% 10 year sovereign bond yields I guess this explains the high PEs. And with the risks outlined by GI above, a lower PE for HTSN is right, but a whole 10 points less???
Greyinvestor
20 Jan 2015
Yield matters To my mind the difference between HSTN and the other REITs is yield. HSTN operates in a shorter lease, higher yield area of the market. So it is typically straining for a 10% yield, way above the competition. It also tends to trade properties to generate extra profit, and runs an OEIC.Yes, there is a serious exchange rate risk, which is partially hedged. It helps that borrowings are matched to the currency of the rent. But this doesn't remove the exchange rate risk on NTA and on profits.There is also a risk associated with the LTIP, which is exceptionally generous and which is starting to kick in.Despite all of the above, I have a serious part of my worldly wealth tied up in HSTN, and I don't own any other REITs (I once owned AlphaPyrenees and Invesco's property REIT and what dogs they turned out to be). So I'm backing HSTN to perform. They have been excellent so far.Finally, don't forget that these are heavily shorted; someone believes that the shares will fall......
PJ Foster
19 Jan 2015
Re: With an increasing focus on Germany Hi Yorkists,I'm not sure you have your PE rates correct - for BLND iii is giving P/E of about 7 and Google Finance is giving a P/E of 5. On that basis, BLND does not look stupidly over priced. (Although as a holder of BLND, I'd prefer a bit more of the earnings to be returned to the shareholders as a dividend)Cheers,
yorkists
19 Jan 2015
Re: With an increasing focus on Germany in sterling terms it depends whether the tenants are exporters in which case they´re doing better, and within Euroland there is zero effect anyway, except for the macro issues. so earnings will suffer in pound terms, is that it? seems an awful lot of risk priced in with a of 15 v 25
theprior
19 Jan 2015
Re: With an increasing focus on Germany With the. £/€ going above 1.30 the German assets must be under pressure.TP
yorkists
19 Jan 2015
With an increasing focus on Germany we must now be at approx. 50% UK and 50% Germany, just how risky is this?. Currency risks we are aware of but cannot measure. The EPS increase projections looks exciting for a REIT, rising from 6.8 to 7.85p for y/e 2017. So why hasn´t the SP re-rated like pure UK plays? On a PE of 15 it´s well behind BLND which is ridiculously high on 25. Obviously just currency and Euroland risk issues. Surely there is zero short term risk of debt costs increasing?
theprior
18 Dec 2014
Re: RNS further disposal. Yes, W. The market seems to like it too. Not seen a multi pence rise for a long time.WB, welcome. You've obviously done your homework here. As our friend W says, make sure you get the tax benefits sorted !Regards to all, and best wishes for the festive season and beyond.TP
wangbaudan
18 Dec 2014
Re: RNS further disposal. TP,Yes, I noticed that too. Also woder where the cash is going this time. Maybe a small chunk of a Dresden suburb. Exciting isn't it
wangbaudan
18 Dec 2014
Re: RNS further disposal. A very wise decision, especially considering the special tax situation from REITs. Make sure your provider claws back the PIDs for you. They sometimes forget or don't know. If you bought your first shares in 1971 you must, like me, have an interest in pension supplementation and I find Reits ideal. I also have sgro and bbox.good luck
Warren Buffoon
18 Dec 2014
Re: RNS further disposal. Hope all is well here. Bought in today and its my first ever REIT (first share bought in 1971 !!). Looking for a bit of long term income. . . . Any feedback from you old hands welcome. . . .
Greyinvestor
18 Dec 2014
Re: RNS further disposal. Well spotted. I would class these as disposals of poor quality assets at moderate prices. In theory the Chippenham asset should be good, but in practice there is a huge glut of empty property in that area.A neutral move to me.
theprior
18 Dec 2014
Re: RNS further disposal. New disposal announced today. Interestingly no info on acquisition costs of these properties ??
theprior
13 Dec 2014
Re: RNS further disposal. Hi folks, sorry if I appeared to be ignoring posts recently, I've been otherwise engaged and not paying attention to my 'garden'. Need to get to work clearing some weeds now (that doesn't include HSTN!).Good luck, TP
Greyinvestor
12 Dec 2014
Good cash recycling Don't know if you noticed some good cash recycling by HSTN, on Dec 8th?It's just typical of them; flog some stuff at a higher price, fully occupied, then buy some stuff that is 20% empty, and at a higher yield. Well done HSTN, and a good explanation of why you have done it.Ironically the seller is SGRO, in whom I have shares and about whom I've constantly grumbled that they sell higher yielding stuff and buy lower yielding stuff in the hope of a better future return. Not the strategy that I would follow.HSTN seems to be a bit out of favour and have a mountain of shares being shorted. I know that the LTIP will probably knock the NTA back by 2p to 3p, but I am still perplexed as to why they believe that HSTN will decline. I hope not; I have a significant amount of my worldly wealth tied up in it! I'd love to know what they are thinking.........
