I trust you have enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2018 provides a ‘year in review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2017, as well as provide a few remarks about valuation.
Summary: From what I could tell from the chairman’s 216-word update, DJAN has had to work hard of late to achieve somewhat modest progress. Currency movements and Brexit apparently kept a lid on this H1 performance, although NAV still managed to creep to a £103 per share all-time high. Dull updates from low-profile businesses often cause share prices to stagnate, and so I’m not too surprised the property group’s discount to book has widened since I first bought during 2015. I now wonder whether I should buy once again. I continue to hold. Continue reading →
Summary:This time last year DJAN’s management was full of Brexit gloom, but here we are now with the commercial property group declaring new highs for revenue, net asset value and the dividend. Of course, the board’s caution may eventually prove to be shrewd, and I’m hopeful the veteran executives will be able to navigate through any wider property uncertainty — assisted in part by the firm’s relatively low level of debt. The shares trade at 63% of net asset value and I continue to hold. Continue reading →
I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!
This first Blog post of 2017 provides a ‘year-in-review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2016, as well as provide a few remarks about valuation.
As I mentioned this time last year, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons! Continue reading →
Summary: These results were better than I had anticipated. Boosted in part by the weaker GBP, the commercial property group declared 6% greater rental income alongside a new all-time high for net asset value. There may be a little question mark with cash generation, but debt is still relatively low while DJAN’s seasoned management should be able to cope with any ongoing sector uncertainty. The shares trade at 59% of net asset value and I continue to hold.Continue reading →
Summary: I have no complaints about these figures. Rental income and operating profit advanced significantly to new all-time highs, while further valuation gains helped the property group’s balance sheet reach a record £91 per share. Debt remains relatively low and I’m trusting DJAN’s veteran management will be able to take full advantage of any ructions in the post-Brexit property market. The shares trade at 53% of net asset value and I continue to hold. Continue reading →
After monitoring the group’s subsequent progress, I decided to buy at an average price of £58 (including all costs) between November 2015 and March 2016. The share price now is £57 and the holding currently represents about 5% of my portfolio.
I have to confess, this new position is not terribly exciting. DJAN is a low-profile business that owns a variety of commercial and residential buildings located mainly in London and the eastern United States.
Nonetheless, I do feel this £929m firm offers many traits of a respectable investment.
Important attractions for me include an impressive record of dividend and net asset growth, a conservatively financed balance sheet, a boardroom staffed by veteran family management, and a modest share-price valuation.
However, I recognise DJAN is by no means a one-way bet.
An obvious danger here is a dependence on what could be a toppy property market. Another potential drawback is that the shares have always appeared ‘cheap’ — due mostly to the directors’ 80% family shareholding and their reticence towards outside investors. Continue reading →
Today I’m reviewing the six shares that reside on my Watch List. After all, there’s no point in me operating a Watch List if I don’t occasionally review the progress of my potential investments — and ensure I’m all ready to buy when their valuations become more attractive!
So here is what’s happened at my Watch List companies since the initial write-ups.