Rhigos
23 May 2018
Re: Results Despite good results SP -0.48% yesterday but today at 4pm when FTSE 100 -1.4% (assume US markets down as was only down a bit this morning) SP +3.1%. Is this rise today just down to broker recommendations?
claude reins
23 May 2018
Re: Jefferies have Buy and 250p target Thanks to all for their recent posts. I remain confused about the macro factors in the growing BTL market. I understand - and heard a guy with this respoinsibility in L&G - that the insurance companies see this area as a major location for significant capital. They want long term rental agreements with total control over their operations - ONCE they are built. I would have thought that the WJG model in student accommodation of sourcing land and building with staged payments so avoiding capital risk would be ideal to transfer across to the insurance company programme. Yet they seem to be moving towards a model which involves ownership.....or am I missing the point? The opportunity is clearly there in the BTL market, but which way are WJG going? Views appreciated.
claude reins
23 May 2018
Re: WJG BROKER NOTE......... and.....? Your 'take' on the company results and / or the broker note?
gretel
23 May 2018
Jefferies have Buy and 250p target [link] backs Watkin Jones’ ‘innovative’ ideasConstruction and development company Watkin Jones (WJG) is finding innovative ways to boost shareholder returns, says Jefferies. Analyst Anthony Codling retained his ‘buy’ recommendation and target price of 250p on the stock following in-line half-year results. The shares were flat at 208p yesterday.Although Codling said he would not be making any changes to full-year estimates, he said ‘the board is exploring some innovative ways to enhance shareholder returns in the medium term’ through a ‘build to rent’ plan.'The board is at an early stage of exploring ways to enhance shareholder returns via a new investment vehicle,’ he said. ‘We view this as very positive as it shows that despite the chief executive transition, the board is driving the business forward. ‘Build to Rent is a hugely untapped market and one that the traditional housebuilders are largely leaving untouched. We believe that a focused investment vehicle in the build to rent market may generate attractive returns.’"
oldjoe1
22 May 2018
Re: WJG BROKER NOTE......... WJG[link] Jones has a student accommodation pipeline of £900m across 25 sites as the sector continues to thrive.</b>CEO Mark Watkin Jones said the firm has an "excellent development pipeline"The firm added in its interim results today that it is is “currently in negotiation on a number of other opportunities which it is expected will further add to this pipeline in the second half of the year.”Strong demand in the student accommodation sector helped Watkin Jones make a pre-tax profit of £23.6m on a turnover of £158.3m for the six months to March 31 2018 compared to £21.1m and £133.7m respectively last time.Watkin Jones is also expanding in the build to rent market with five schemes planned including those in Reading and Uxbridge.Chief Executive Officer Mark Watkin Jones said: “We are continuing to see strong demand for our student accommodation developments and are pleased that demand from institutional investors, keen to acquire scale in this maturing asset class, remains robust. “We have an excellent development pipeline and we are excited about several other opportunities expected to be added to the pipeline in the second half of the year.“The Group is now in control of five build to rent development sites and remains in positive negotiations on several other opportunities. We remain optimistic about the scale of opportunities this sector offers.”
gretel
22 May 2018
Peel Hunt raise price target to 240p Peel Hunt have increased their price target to 240p (from 230p) and say Buy:[link] interims look good to me, with H1 basic EPS up 12% to 7.53p - and the cash pile up to over £38m - plus much confidence in the outlook.The creation of the new vehicle - with possibly a separate listing - to acquire the BTR properties is intriguing and may excite the market.
oldjoe1
22 May 2018
WJG BROKER NOTE......... WJG Watkin Jones....................Broker Note. [link] …[link]
mark goodair
22 May 2018
Results Interim results out this morning. Solid improvements and an impressive 12% increase in the dividend.
PIE-EATER
18 May 2018
Re: Two good RNS's today Particularly impressed with CEO appointment and the handover...should prove positive for SP as he is no mug and is already quite well known to WJG.
gretel
18 May 2018
Two good RNS's today - the new CEO is an impressive appointment from the Unite Group. Good to see MWJ working closely with him for the foreseeable future - and there's a new, large high spec BTR scheme to be built in Reading, importantly to be development funded by large partners to the tune of £68.5m. And it will start construction immediately.The tone of the BTR update indicates more opportunities coming soon in a similar vein.
gretel
08 May 2018
Glasgow planning permission obtained New article about WJG getting permission for a big 400 bed development in Glasgow (despite opposition from a local councillor):[link] comes after plans for another block of student flats in Townhead was given the go ahead.The former Watson Printers site on Kyle Street will soon be demolished to make way for the 400-bed development.Close to Glasgow Caledonian University, the multi-storey property will be sandwiched between other student flats, Caledonian Court and Buchanan View.The nine storey purpose built, managed student accommodation will comprise of a mix of studio and cluster flat bed spaces with amenities, a retail and commercial unit as well as a courtyard, gym and plant room.Developers, The Watkin Jones Group, have previously developed Bridge House on Old Dumbarton Road, Dunaskin Mill, Dunaskin Court and Dobbies Point on North Hanover Street."
gretel
30 Apr 2018
Tipped today on i.i.i WJG are featured today as one of 5 companies in the FTSE AIM UK 50 "which are growing and throwing off cash but are on much lower multiples":http ://www.iii.co.uk/articles/499598/these-aim-big-boys-are-going-cheap"Watkin Jones (WJG)Watkin Jones (WJG) is growing strongly on the back of demand for student accommodation, and it is beginning to supplement this growth with developing private rental projects. The company finds UK sites, secures planning permission and then the land is forward sold to institutional investors. Watkin Jones will then construct the accommodation. The main growth in revenues over the coming years is expected to be from the build to let developments.It has not all gone Watkin Jones' way. It has lost some business in its student accommodation management company Fresh Student Living because the properties have been sold to a new owner, which is taking management in house. That will stall the division's revenue growth for one year and then it will restart in 2019-20. There is also uncertainty concerning who will take over from Mark Watkin Jones.Pre-tax profit is forecast to improve from £41.8 million to £45 million this year. Net cash should rise from £41 million to £50.6 million by the end of September 2018 and Watkin Jones should be able to pay growing dividends and still generate £10 million plus a year of spare cash in each of the next few years. This year's dividend is expected to be 7.5p a share.The shares are trading on 13 times prospective 2017-18 earnings. The share price has been weak in recent months, although it is still nearly double its flotation price two years ago, and this provides a buying opportunity."
gretel
23 Apr 2018
Cardiff scheme making good progress Cardiff is going well - note that WJG's FSL will be managing the property:[link] Tallest Building will be Home to nearly 500 students from SeptemberRhys GregoryApr 23, 2018Bridge Street Exchange, Cardiff's tallest building and newest studentaccommodation development, which is being developed by Watkin Jones plc, hits a construction milestone this week with a traditional "topping out" ceremony held on the 26th floor.At 85m high, Bridge Street Exchange is currently the tallest building in Cardiff and boasts fantastic views all around the city and further afield from the upper floors.Having taken just over a year to reach full height, the scheme will officially open its doors this September, providing high-quality student accommodation across 477 en-suite rooms and studio apartments.The scheme will have two roof gardens and three high-speed lifts have been installed to serve all of the 26 floors. A gym, cinema, laundry and social space will ensure that Bridge Street Exchange offers an unbeatable living experience in the city.The accommodation will be managed by Fresh Student Living, who manage over 16,000 beds across the UK and the Republic of Ireland. Jane Crouch, COO for Fresh Property Group, said:"Bridge Street Exchange will offer students an exceptional standard of accommodation in the heart of Cardiff within easy reach of both Cardiff University and the University of South Wales. We're excited to be moving into an iconic local landmark and look forward to welcoming students this September."Watkin Jones plc are developing the scheme, which previously housed retail units and restaurants, and the facade to the Charles Street elevation has been retained as it falls within a conservation area. The pavements and road surfaces around the scheme will be upgraded to enhance the local area further, and plans are in place to build four duplex apartments on the site. An application to allow non-students to live in the building in its first year has been submitted to the Council."
gretel
16 Apr 2018
Tipped on Motely Fool Featured here as a buying opportunity:[link] cheap Neil Woodford dividend stocks I’d buy for my ISA todayRoland Head | Thursday, 5th April, 2018This could be safer than housingIf you’d like some exposure to UK property but are concerned about the housing market, student accommodation specialist Watkin Jones (LSE: WJG) could be an ideal alternative. The Watkin Jones share price rose by nearly 4% in early trade this morning after confirming it’s on track to meet full-year expectations. All of the student developments due for delivery by summer 2018 have now been pre-sold to landlords, as have some of those due for completion by summer 2019. In total, the company has secured planning approval for over 8,300 ‘beds’ from its pipeline of 9,800 beds. Watkin’s build-to-rent housing business is also growing. The pipeline of sites with planning approval has risen to 700 homes during the six months to 31 March. The firm now expects to build 1,500 homes over the next five years. Why I’d buy The shares have fallen by about 15% since mid-January, when chief executive Mark Watkin Jones announced plans to stand down after 15 years in charge. I’m not too concerned by this. His departure is being carefully managed and he intends to remain available to the firm for advice. I think the weakness we’ve seen so far this year could be a buying opportunity. Unlike conventional housebuilders, this business is focused on the more buoyant student accommodation sector, which should provide stable long-term demand. Alongside this, the company builds houses for large rental landlords, another area where demand is growing. Taken together, I expect these operations to provide fairly reliable profits. And with the shares now trading on just 12 times forecast earnings and offering a 4% dividend yield, I believe this stock deserves a buy rating."
gretel
11 Apr 2018
Now tipped in the IC.... Tipped by Simon Thompson in the IC:"Watkin Jones (WJG:190p), a construction company specialising in purpose-built student and private rented sector (PRS) accommodation, has issued a robust pre-close trading updated ahead of its half-year results on Tuesday 22 May 2018.The company has a pipeline in excess of 9,800 student beds, of which 88 per cent have planning consent. All 3,415 beds scheduled for delivery in the 12 months to the end of September 2018 have been forward sold, which underpins Peel Hunt’s forecast that revenues will rise by 15 per cent to £345m and boost pre-tax profit by 9 per cent to £47.8m in the period. On that basis, expect EPS of 15.2p and a 10 per cent hike in the dividend per share to 7.3p.Importantly, the pipeline is equally robust as Watkin Jones has already forward sold all 2,675 beds at five of the seven schemes in development for delivery ahead of the start of the 2019 academic year. It’s also actively marketing a number of schemes to institutional investors for delivery ahead of the 2020 and 2021 academic years, and reports strong demand, adding weight to analysts’ forecasts of a further ramp up in revenue to £413m in 2019 and £478m in 2020. The company is developing five build-to-rent residential sites, too, another lucrative source of income. On that basis, analysts at Equity Development and Peel Hunt expect EPS and dividends per share to increase to around 16p and 8p, respectively, in the 2019 financial year, rising to 17.6p and 8.6p the year after.True, the shares have drifted slightly since I last advised buying at 207.5p ('Six small-cap plays', 22 Jan 2018), having first recommended buying at 103p when the company floated on Aim ('A profitable education', 3 Apr 2016). One reason for the pullback is because chief executive Mark Watkin Jones sold 1.5 per cent of the shares in issue at 195p in early March and is stepping down from his position, as I flagged up in January. However, the share sale was only made to facilitate the financial settlement of his divorce and the Watkin Jones Family still retain a hefty 27.6 per cent stake, aligning their interests with those of outside shareholders.Moreover, the shares offer a prospective dividend yield of 4.3 per cent for the 2019 financial year and are only rated on 10 times cash-adjusted forward earnings after stripping out a burgeoning cash pile that could be worth 25p a share by September. A trading buy."
