Investors Chronicle – A quartet of small-cap value plays
“…trading on a modest premium to book value, rated on less than 9x EPS estimates of 5.6p, falling to only 8x EPS estimates for the year to March 2018, and offering a 3.2% prospective dividend yield based on a forecast payout of 1.55p per share, First Property’s shares still rate a great buy in my view and with further upgrade earnings potential in the price for free. Buy.”
Investors Chronicle – exploiting strong foreign exchange tailwinds
Simon Thompson says “Investors have yet to fully factor in (house broker Arden’s) massive earnings upgrade…(which is) solely based on rental income from the current portfolio and fund management fees on existing mandates, so the forecast risk is skewed to the upside.” He rates the shares a strong buy and believe his 56p price target could prove conservative.
Proactive Investors – First Property’s attractive divi comfortably covered by recurring earnings
Investors Chronicle – High Fives – First Property major contract win
IP Real Estate – BAE Shipbuilding Industries adds £45m to First Property commitment
Investors Chronicle – Anomalously priced fund managers
Simon Thompson summarises: ‘Rated on a discount to spot net asset value, trading on just 8 times forward earnings…, and with significant upgrades highly likely in eight weeks’ time, the investment case is very solid. In the circumstances, I rate First Property’s shares a strong buy…ahead of November’s interim results and my initial target price is 56p, coinciding with the all-time high dating back to the end of last year. Buy.’
Proactive Investors – Brexit holds no fear for First Property boss Habib
“…He sees the current market instability post the UK vote to leave the EU as a big opportunity for a small firm like First Property, and means (for currency reasons) an immediate injection of profits in the short term and later, a chance to buy more UK assets, while prices are under pressure (cheaper).
Longer term is also looking good for the UK market, he reckons…”
IP Real Estate – Uncertainty peaks
Ben Habib, chief executive of First Property, is one of the few in the UK’s real estate sector to argue that a “Brexit” would be positive for both the property market and Britain as a whole. “Any volatility would only be an opportunity for small, opportunistic companies such as First Property,” he said.
Investors Chronicle – head east for profit
Simon Thompson reiterates his price target of 56p, citing “the potential for further value creation is not being factored into the current valuation. Nor is the fact that 95 per cent of the current year £21.9m revenue forecast is recurring, so offering a high degree of certainty in those estimates. The market is also failing to acknowledge the impressive track record of the company. There are not too many investments that can generate such a high sustainable return, nor have potential to continue to do so, irrespective of whether the UK stays or remains a part of the EU.”
Investors Chronicle – First Property sell-off buying opportunity
Simon Thompson reiterates his buy recommendation, noting “…that investors are being overly cautious in their valuation and assessment of First Property’s future prospects. Offering 40 per cent share price upside to my target price of 56p, I would be a buyer of the shares ahead of the forthcoming results.”
Investors Chronicle – New highs beckon
…having first recommended buying First Property’s shares at 18.5p in 2011…Simon Thompson feels that the odds continue to favour a move to the upside to his raised target price of 56p. Trading on only 1.25 times historic book value, he rates First Property’s shares a buy on a bid-offer spread of 49p to 50p.