smilingmickey1
06 Apr 2016
Re: Why the recent decline ? I'm sitting on a small capital loss having invested during 2015 with the purpose of a long term hold, relatively risk free, securing a decent yieldIt's a while since your post. The results for the year have just been issued. It's worth noting the significant increase in Company property portfolio valuation during the year. This combined with the relative weakness in the share price means that the market cap of the business is now just below its NAV. The market perception appear to be that property valuations are unlikely to continue to rise at the same rate as in previous recent years hence the change in share price/NAV ratio. Depending upon one's view of where property values will move this could be a good entry point. Maybe as we approach the Brexit vote we will see more share price weakness in the short term.The Company has strongly benefitted from the refinancing of its debt on more favourable terms. to the tune of more than £10 million per year.It's worth noting that the dividend cover increased from 50 to 80% of the cash flow, so an improvement but not yet fully covered. The cash holding as at the year end was approx the same as the expected annual dividend payout assuming the current rate of payout.. At some stage to maintain the divi there may either need to be property asset sales, or some additional borrowing required. The gearing of the Company is however quite modest. In retrospect my entry point was probably too soon but I feel the dividend payment is secure so I can sleep easy with a return much better than I could get with a bank deposit with acceptable risk and hopefully over time an increase in capital value.
foolish learner
02 Dec 2015
Re: Why the recent decline ? I took a nice 15% or so profit on theses at about 142 about 9 months ago and bought FRCE which have slowly climbed 5% despite the FTSE fall, may be getting near to reverse buy/sell position if these fall back to 126 markBLND are moving up and down and down a bit, divi is less but 4 to 5 percent quick capital looks realist opt
grapheve
21 Nov 2015
Re: Why the recent decline ? You are correct, the current yield is 4.4% and the monthly divi is 0.5p. I bought FCPT as a lower price and I was looking at the yield on my holding cost.
Mr Return
21 Nov 2015
Re: Why the recent decline ? Hello fellow FCPT investors. I wondered what your view is on the recent decline in FCPT share price and did a longer scan with the google's help trying to find news. I would appreciate your feedback on the following thoughts. The 2015 half year statement showed that the dividend cover is only 0.7 i.e. not sustainable to be paid for i.e. years. In previous years it was as high as 3.5. I read that FCPT invested ~9% into an office complex in Aberdeen. With the oil industry aching under the 40-50$ price per barrel Aberdeen is probably in decline rather than on the up as an real estate investement destination?Then, FCPT let Gatwick office space to Virgin, but 18 months rent free?! Also I recall that supermaket space is let to ASDA but the store is closed. The letting agreement is to continue.With the recent dreadfull terrorist attacks on the continent I wonder how that affects shopper sentiment to go out on into the heart of Lodon to St. Christopher's place and whether this has an impact on the tenants balance sheet.Last but not least the FED will incease the interest rates,only by a margin I reckon maybe 3 or 4 0.25 % steps. Might this be enough to affect mortgage rates in the UK at all?I image I noticed in the volatile period since August 2015 that if the overall market drops FCPT is steady or even goes up. If the market goes up FCPT is more likely to drop. I wonder whether it is used as a cash park since no stamp duty is to be paid due to the fact it is a trust i.e. short term purchases/sells are cost neutral. But the trade volume is surely to small for this to be attractive?Last but not least the NAV is based on RICS surveyors assessements which is on paper but there is no guarantee that gains can be realized. Next year the NAV might not rise but drop perhaps in case London property prices really do take a nose dive.The dividend yield ~4.3 % is very attractive but is it real? Does anyone know how it dropped so within a year from 3.5 to 0.7? One more thing: Is it correct that the board of directors is averaging 60 years of age?! Is that "normal" or an indication of an non rejuvenated trust?Looking at the above i wonder whether FCPT is earmarked for a serious correction, down to 1.10 to 1.25 levels. Where it would be an interesting buy again?Stay in or sell? I appreciate your thoughts.
WarrenGemini
21 Nov 2015
Re: Why the recent decline ? Surely the dividend is current ~4.4% (rather than 5%) or has the monthly 0.5p amount changed ?
grapheve
20 Nov 2015
Re: Why the recent decline ? Interesting comments. IMHO I concur with the view that an interest rate rise (in the UK) is still 12 months away.I am thinking of topping up in FCPT and others SLI or SREI
jonwig1
20 Nov 2015
Re: Why the recent decline ? This week, both LAND and BLND have issued statements which have been on the cautious side: restricting development programs, selling non-core assets, etc.It may be that they see prices too high, or that a rise in interest rates is imminent, but the market is being spooked a little bit.
JohnOfYork
20 Nov 2015
Re: Why the recent decline ? Every time the yield goes over 5% I top up. I think there are general fears about the economy slowing down with subsequent consequences for the property market. However, if you look in detail at FCPT's portfolio it is heavily biased towards London and the SE where there is no evidence of a slowdown. Indeed, the reverse is true as many available sites are being used for housing with a resultant squeeze on commercial rents.
grapheve
20 Nov 2015
Why the recent decline ? At 136p FCPT is now paying just over 5% in divis and sits at just a small premium to NAV , 103%, down from almost 120 % at one time. Other commercial property Investment trusts have also fallen.Any ideas / insight ?
zanadoo
18 Mar 2015
Re: Views On This Fund Appreciated May regret but sold today to keep profits. Eager to get back in though when things stabilise. Of course that will probably be today now I'm out. Good luck all
My name is Bond James Bond
13 Mar 2015
Re: Views On This Fund Appreciated 60% of the fund comprises London and SE which is one of the highest weightings among property trusts. The recent interest of, and bids made by, foreign investors interested in assets in this part of the UK probably accounts for a higher rating relative to its smaller peers. Aberdeen leases average around 7 years and a lot can happen in this time. As the Aberdeen property is prime would not expect it suffer too badly although capital values may be flat to marginally negative for 2-3 years. The highly weighted London and SE should more than offset this.FCPT may well up the dividend payout over the next year as property rental yields have risen but the dividend has not. They have made comments about recent acquisitions "increasing the level of dividend cover" Also gearing is a relatively low 18%. Vacant property is running at 5% so again room here to squeeze some extra income for the assets. Regar
grapheve
13 Mar 2015
Re: Views On This Fund Appreciated I am watching this one as well, trying to decide about trading in the range movements. I keep an eye on the premium to NAV which has been recently as high as 122% and today at 113%. Assets are reviewed quarterly , next one is due 31/3/15. Hopefully this figure will nudge up reducing the NAV premium. I missed two limit orders to sell at 146 & 148 this year..Also with no stamp duty these are cheap to trade without losing too much in charges.
rugosaplants
13 Mar 2015
Re: Views On This Fund Appreciated Looks as if it is on a bit of a slide, and for short-term investors, some profit-taking might be in order. But I am a long-term investor, and see property as a good one for the future, as well as giving a nice monthly dividend. I am sticking with it.
zanadoo
13 Mar 2015
Re: Views On This Fund Appreciated Any new thoughts on this. Nice upward run has now stalled and reversed. Hope for the future?
jonwig1
28 Jan 2015
Re: Views On This Fund Appreciated I think largest single is less important than geographical location. As far as I know, they have nothing else of note up there.However, I haven't seen the video, so thanks.
