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EPIC - their turn to look anomalously cheap...

SKYSHIP
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EPIC - their turn to look anomalously cheap...

#328802

Postby SKYSHIP » July 26th, 2020, 2:41 pm

The Commercial Property sector, especially the secondary regional players, provides a good choice of player options, each with their own differences of geographical spread, sector spread, LTV variations etcetcetc. The link below shows you most of the runners and riders:

https://uk.advfn.com/cmn/fbb/thread.php3?id=29245091

After their NAV & Trading Update last week, Ediston Property Inv. Co. (EPIC) is looking anomalously cheap versus peers, perhaps in the same way PCA was when I posted a couple of weeks back.

https://uk.advfn.com/stock-market/londo ... V/82908803

EPIC has reduced its dividend to a well-covered 4p per annum; so at 51p the yield is a very handy and now secure looking 7.8%; whilst the notional NAV (all NAVs being notional at the moment) delivers a 43% discount.

The reason for the discount versus peers is that the EPIC portfolio was deliberately skewed to Retail Warehouse; but the current valuation is excessively skewed to the downside. I expect a recovery to nearer the 60p level. NB, they were at 59p just 2 weeks ago.

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Re: EPIC - their turn to look anomalously cheap...

#331514

Postby SKYSHIP » August 7th, 2020, 10:50 am

55.5p Bid, so have banked the turn. Possibly selling too soon (as always); but difficult to ignore good trading profits these days...

Just hope Simon Thompson doesn't re-tip them later on today!

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Re: EPIC - their turn to look anomalously cheap...

#338715

Postby SKYSHIP » September 7th, 2020, 11:08 am

EPIC have returned to 50p and are again anomalously cheap - an opportunistic buy like last time.

The story is however clearly boosted by two announcements today:

# The Retail Gazette reports encouraging news for Retail Parks: "Overall footfall in August declined by 31 per cent year-on-year, an improvement on July when it dropped 39.4 per cent year-on-year, according to data from Springboard. Retail park footfall boosted the overall August figures, declining by 11 per cent year-on-year compared to the 19.9 per cent decline in July. Footfall on UK high streets was 38 per cent lower in August than the same month last year, while shopping centres were down by 34 per cent."

# RDI reports a sale of their retail parks at an encouraging valuation level: "The Disposal, which is a sale of the six associated special purpose vehicles, is anticipated to complete in mid-October 2020. The purchase price reflects a 3.0 per cent. discount to the last reported 29 February 2020 values and a topped-up net initial yield of 7.5 per cent. "

At the offer price of 50.33p inc SD, the NAV discount = 44% and the yield = 7.95% (dividend of 0.3333p paid monthly)

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Re: EPIC - their turn to look anomalously cheap...

#338796

Postby flyer61 » September 7th, 2020, 5:02 pm

Thanks Skyship. There is no doubt that retail parks are weathering the retail storm quite well. Having visited quite a few in the North West over the last few weeks they have been busy. In fact talking to store assistants many have run out of 'stuff'. Share volumes seem quite light with EPIC, SREI etc. RDI have done well with their sales and it does give the valuers something to use. The 8% yield appears well covered in the present enviroment. So I bought a few more.

Come on Simon Thompson lets have a write up :lol:

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Re: EPIC - their turn to look anomalously cheap...

#339890

Postby SKYSHIP » September 12th, 2020, 2:21 pm

EPIC have gain nicely bounced off the 50p support. Touched 52.8p Bid on Thursday, then closed out the week @ 51.4p-52.8p. Expect higher prices next week...


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