GCP Student Living

[Aprilfool62]

Hello. this is my 2nd post and I hope its on the correct board. (this share yields 3.9% maybe that's not high enough to qualify?)
I hold this in my portfolio and have been sent a subscription offer (rights issue) and I have to make a quick decision. they are offering 140p per share and a minimum purchase of 1000. It is for further private student accommodation in prime sites in London. I get a nice quarterly dividend from this investment, however, it has its risks. Does anyone else hold this share?

April

[tjh290633]

I don't hold but it is on my watchlist, Epic DIGS. It's a bit marginal for an HYP, but worth keeping an eye on. Compared with Unite it's a lot better yield. Primary Health Properties PHP is another one with a slightly better yield at about 4.6%, but that is Health Centres rather than student accommodation. Both ought to be steady sources of income.

TJH

[monabri]

DIGS wouldn't be my first choice (nor second). Their share price closed at 143.25p today so their offer of 140p per share isn't that wonderful IMHO. They are raising £60 million via new shares - so this will reduce the value of the current ones........

Their market cap is £380 million so that is a little on the low side for "HYP". The dividend cover (30 June 2016 - source London Stock Exchange) was 0.94 (1.25 the year before).

You could do better and hopefully safer with some typical HYP shares. If you have shares in DIGS already, why not "diversify" and potentially increase your yield?

Don't put all your eggs in 1 basket.