Slamming Sammy
05 Jul 2016
Overblown?! As usual the market over-reacts (in either direction!) .I presume that a lot of the properties are on long leases (and therefore the rental income will still keep coming in for the foreseeable future) so once the dust has settled (and new corporates are attracted by our new tax haven status!) the market will stabilise and this fund will be a bargain at this price. I am rolling up the dividend into new shares so even if the price never moves up from these levels (which is highly unlikely!) this will be a very good long-term play.
trivaskus
05 Jul 2016
Re: Stick or Sell ???? I'm not sure how the property sell off will effect this company - their remit is to provide an attractive income with the potential for income and capital growth. I believe that potential for growth is still there as long as the income from their properties is maintained. Have been in from 87p and have taken 20K in income in the last 15 years.
Stepenwolf
05 Jul 2016
Stick or Sell ???? Do fellow contributors feel that the property sell-off is now overdone, and there will be a rebound when investors realise that property has been oversold in the post Brexit hysteria OR....is it the start of a long, drawn out and painful process caused by real bubble valuations that are now starting to pop ? The dividend on this and the other F&C Property (Real Estate) fund is still very good at over 5% so one could take the view that if no need to sell, at least the income is good (?)Thanks for any views
trivaskus
05 Jul 2016
Re: Why the recent decline ? But surely the income from their portfolio of properties covers the dividend to a large extent?
grapheve
05 Jul 2016
Ouch !!! This is looking painful. All the property investment trusts are getting a pounding this morning.Post Brexit the outlook for commercial property ain't great. The Standard Life Property Fund (which is an open ended fund) has halted trading because their cash reserves are exhausted. They may become forced sellers, which will negatively impact NAVs of other property investment vehicles.At a price of 102 these are trading at 75.5% of NAV, with a yield of 5.88%. Are these are starting to look attractive?
Dingledangle
16 May 2016
Re: Why the recent decline ? The dividend is not fully covered but has improved considerably. The sp is no longer at a premium to nav, If fact at a discount now.
EssentialInvestor
15 May 2016
Re: Why the recent decline ? The dividend is not covered, do people realise this and we are at or near peakcycle with an uncovered dividend.The premium to NAV was the stuff of la la land, warned elsewhere that investors wouldcome to regret buying at one stage a double digit premium.Where is the scope for any medium term dividend increases? - the risk maybe a cut, all IMV only.
Dingledangle
10 May 2016
Re: Why the recent decline ? Most property funds and Reits have had gentle declines over the past 6 months, as investors look ahead 24 months and think the property boom may be coming to an end. I think F&G is a well managed fund, additionally interest is paid monthly so useful for income seekers. I think money has been coming out of property over recent weeks and going back into commodities, where the yield is more favourable.
Mr Return
10 May 2016
Re: Why the recent decline ? Within 2 weeks FCPT dropped from around 135 to 125. This 10 Pence drop is an 8% correction. The yield now stands at 4.7%. I appreciate that there might be nervousness in the market around a possible Brexit but I would have thought that, in particular FCPT which is a commercial property trust in the UK, would be one of the more stable investments there can be?In Nov 2015 when I put up a question in this forum the stock was at around 145 in 2015. This is about a 12% drop. Or a wipe out out of 100 Million pounds of market cap of FCPT.Unless there are some revelations on the horizon in the AGM and once the Brexit is confirmed or out of the way I would think this is becoming a buy now.Has anyone seen any news about FCPT at all?I wonder whether investors are mistaking FCPT with the US/Canada based and Dollar listed FCPT which might be suffering from the fires in Canada ? FCPT UK is a separate UK commercial property trust which is run by the canadian F&C group but it is completely standalone.The low interest rates appear to be here to stay for a decade. This should be beneficial for property companies such as FCPT or others since concrete gold remains attractive.Also, I do not expect significant increases in borrowing costs in the future for two reasons:Firstly, the UK nor the US would want to increase interest rates since the currencies would otherwise appreciate fast against EURO, YEN and RENIMIBI.Secondly, the state debit of the UK and US and also the private debt in both countries is so high that any significant rate increase would lead to a massive increase in interest repayments which neither the private nor public sector can afford. Apart from perhaps 0.25 or 0.5% increase in 2016/2017 ( if that ) I would be amazed if further interest rates can follow.Unless there is something hidden in the balance sheets of FCPT which will be announced in the AGM in June I do not understand why FCPT is not going up?!Any other thoughts? Am I missing something ? I think I will gradually buy in.
WarrenGemini
05 May 2016
Re: Why the recent decline ? It's very odd, over 600K shares traded already today which is way more than usual.WarrenGemini
Mr Return
04 May 2016
Re: Why the recent decline ? The stock dropped 4.6% now just today ? I do not recall when this happened before with FCPT. Lost of stopp loss orders caught out for sure. Lots of small trades. Either there are some negative news which are not public yet or this is a bargain now?
grapheve
04 May 2016
Re: Why the recent decline ? I think that there are few factors weighing on this stock and the sector.The last NAV update showed the first decline that I have observed (I have owned FCPT on & off for about 4 years) and possibly the first ever. This was attributed to the changes in SDLT. Slowing economic activity must lead to reduced demand for commercial property.A possible Brexit vote will only reduce demand for commercial property at least in the short term IMHO.Brexit uncertainty is having an overall downer on the market.
jonwig1
04 May 2016
Re: Why the recent decline ? Big propcos jittery ahead of referendum, esp in London? Just my take on it, no evidence.
Mr Return
04 May 2016
Re: Why the recent decline ? There has been a rather swift decline from 135 to 126 in the last 5 days of this seemingly so steady FCPT stock, one week before dividend record date. I have not seen any news which would justify this at all? Any ideas anyone?Also, has anyone got any thoughts on my post from 21.11.2015? In contrast to that then oil has stabilised slightly and some on FCPT's tenants in their Aberdeen office park might have a less bleak future. The dividendyield is >4.5% and it seems like an opportunity or am I missing something? Thank you.
azzalyzarc
06 Apr 2016
Re: Why the recent decline ? smilingmickey - thanks for useful analysisI like fcpt because the gearing is relatively modest for property trust. I am a long term holder / stakebuilder for future income - and don't want to see this go out of business as other highly geared property trusts have done (I speak from experience !) in case of a downturn. SP settling back to NAV is fine by me.
