II Editor
24 Jan 2017
NEW ARTICLE: Stockwatch: 5% yield at a discount "Is it too late to consider commercial property-related shares in this cycle? The sector plunged after the EU referendum, only to bounce back - although it's still possible to find discounts to underlying net asset value (NAV) and useful yields to ..."[link]
EssentialInvestor
14 Jan 2017
Re: Portfolio update One of my largest holdings now.I won't click a strong buy as wider equity markets are beginning to looka tad excitable, that does not usually end well.
Greyinvestor
05 Dec 2016
Portfolio update My confidence in HSTN looks well placed. If there is one word that I'd use to describe them, it's Solid.At a time when some corporate profits are starting to feel wobbly, this one doesn't.A good sector, a very experienced management team, price below NAV, straightforward presentation of accounts. Just what I like to see.The update says nothing about financial performance, which I take to mean that it's 'on track'.Good stuff.This is equal in size to my other large holding, a non life insurer, which gives me an 'each way' bet on interest rates.A strong Hold for me.
foolish learner
01 Dec 2016
Re: Shorting Back ground appreciated thank
Greyinvestor
30 Nov 2016
Shorting Being a careful bloke, I both emailed the directors of HSTN and read posts on other bulletin boards before adding to my stake (do a Google on ADVFN HSTN)I ended up being satisfied that the shorting is essentially technical. I'm lousy at maths but it seems to be investors buying the convertible bonds and selling the equities at the same time. The bonds must convert at a better price than the sold price. In othe words it's just good mathematicians locking in a modest profit per share. Too clever for me.Other issues are the LTIP, which is incredibly generous to directors, and which encourages them to make short term profits at the end of the LTIP time period. But of course they only get rich if we get a bit richer.Also the likely fall in property prices due to a) brexit and b) rising interest rates. In my view both will be modest but may well happen.To my mind this is a fairly safe, RPI proof, yield, with modest capital growth. I regard it as being less likely to fall than the wider market, which I believe will at some time fall fairly heavily.I rate the management and got a good response from them to my questions.I'm just an amateur though, so I could be wrong.......
foolish learner
30 Nov 2016
Re: Added again GreyinvestorDoes the recommendation run against your usual stance of avoiding stocks that are heavily shorted? These have been attractive to the shorters from the 120 mark, so do you think ths may be the low point in the current climateFL
Greyinvestor
30 Nov 2016
Re: Added again Good stuff. In my view if you worry about your income, the capital takes care of itself. That simple strategy enabled me to stop real work at 50, and in the subsequent twelve years my financial situation seems to have got better, not worse. I'm just an ordinary bloke.When you stop worrying about income, you run the risk of overpaying for something. A bond market paying less than nothing is telling you something; you've lost your marbles.........
Warren Buffoon
30 Nov 2016
Re: Added again Nice post Greyinvestor. I bought these in 2014 and currently returning me 5.7% pa including dividends. Never invested in property before (except living accommodation) so I'm working on it, Having bought my first unit trust in 1971 you might have thought I might have bought some before." I don't own a single bond. In my view government bonds are about as nice as the plague." ..... love that sentiment. I'm exactly the same. I'm not convinced anyone knows what they're doing (look at Bill Gross).And yes, surely the whole market is overvalued with a p/e ratio of around 24 when the long term average is around 15 !Just sticking with it throught the ups and downs............
Greyinvestor
29 Nov 2016
Added again I started buying HSTN in 2012. I then eased my stake back when the share price went north of £1.20. I've since bought them all back, and added more today. So I have a big stake.My thoughts are that this REIT has the widest gap between rental income and interest rates. The management team are very experienced and have been good traders of property. I like light industrial property as a concept, I think it's the best part of the market, although I also hold some NRR. The management team have skin in the game plus a huge bonus from the LTIP if they deliver.The biggest threat is not being able to raise rent as fast as interest rates. But I think that we are still in a deflationary world.To me these have always been a bond substitute. I don't own a single bond. In my view government bonds are about as nice as the plague.Finally, these are trading at below NAV. Even if you believe that they should be, this represents a good deal for the shareholder.A very strong Hold/Add for me. I think that the whole market is overvalued. But these are fairly priced, in my opinion. But DYOR.
Greyinvestor
23 Aug 2016
Results out Good results out today, I thought.EPRA NAV 124p or 120p after exercise of bond conversion. +12% although the underlying property value increase was only 1% Normalised income profit £29.2m v £22.8mGearing 44% v 41.2%Vacancy level 12.9%Basic business model is generating a yield of 7.6% v cost of money 3.2%.Dividend +4.8% to 2.2p, payable NovemberMy thoughts; I have always regarded this as a bond substitute. I still do. The divi has been raised again, by more than inflation, and the decline in sterling has, as expected, pushed up the NAV. All of this is good.For the future, interest rates need to stay low and the management needs to work the portfolio hard. Maybe the company should go further east to find higher yields. There are no easy gains to be had any more, the original 'buy it cheap' cycle has run it's course. But if you believe, as I do, that the stock market is overvalued, these are a solid Hold.A firm Hold for me. Perfectly decent results, in my view. I have a large holding, which I added to at around £1.A full year divi now totalling 5.35p gives a running yield of around 4.67% @ £1.145 share price, which is a discount of around 8% off NAV. Sensible value today, the price might rise.
theprior
26 Jul 2016
Now hold 100% of AIF Very promising.TP
Greyinvestor
27 Jun 2016
Topped up Topped up today at 96p. Not stunning value but certainly much, much better than last autumn.I can only see interest rates falling further, and with the pound falling too the European income should rise.
Greyinvestor
27 Jun 2016
European exposure I may be wrong, but I think that this is roughly 40% UK, 60% Euro area, which seems like a reasonable split to me....I'm evaluating a top up......
theprior
24 Jun 2016
Only 4% down As most of our assets are in Europe I expected to pick up some more shares at a lot less today !Bodes well for the future though.TP
north wall hammer
18 Jun 2016
Dividend Query Was a 3p/shr special dividend paid in May this year along with the interim?
