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Crest Nicholson Holdings PLC on Thursday said it swung to a loss in its first half-year despite increased revenue.

Shares in Crest Nicholson were trading 8.1% lower at 221.42 pence each in London on Thursday morning.

The Surrey, England-based housebuilder also announced that former chief executive officer Peter Truscott will step down from its board on Friday, having served since 2019.

New CEO Martyn Clark, previously chief commercial officer at fellow housebuilder Persimmon PLC, assumed the role on Monday last week. Clark’s appointment was announced in January, with Truscott agreeing to remain with the firm until the handover process was complete.

Crest Nicholson on Thursday reported a GBP30.9 million pretax loss for the six months to April 30, swung from a GBP28.4 million profit a year before. Its basic loss per share was 9.1 pence, compared with 8.2p.

On an adjusted basis, pretax profit still plummeted 88% to GBP2.6 million from GBP20.9 million. Basic EPS fell 89% to 0.7p from 6.1p.

Revenue decreased 8.9% to GBP257.5 million from GBP282.7 million, as home completions decreased 12% to 788 from 894.

First-half reservations were “in line with expectations”, Crest said, with the revenue decline “reflecting the low level of reservations at the beginning of the financial year”. Land and commercial sales for the period, however, surged to GBP30.8 million from GBP4.9 million.

The adjusted figures come after accounting for GBP5.9 million of completed sites charges, “also reflecting lower volume and a higher proportion of revenue from low margin sites as the group makes good progress in reducing low margin inventory”.

Crest Nicholson declared a 1.00p per share interim dividend, down 82% from the 5.50p it returned for first half of last year.

Why Dividend Stocks Are Great for Building Wealth

In my opinion, dividends are one of the most powerful forces in the world for creating and building wealth over time.
In today’s modern age, people on the internet love to pedal passive income ideas left and right because they know that passive income is an incredible thing.

The problem is that once you look into whatever new scheme they’re claiming provides passive income, what you typically find is that it’s not passive at all! 

Whether it’s real estate or a side hustle creating websites or a whole slew of other “passive income” ideas… Most of them require significant time and even additional resources to realize any passive income at all.

Dividend stocks, as far as I know, are the only thing that allows Fortune 500 companies to work on your behalf and pay you a true stream of passive income from the result of their efforts.

The Dividend Wealth Journal Team  

Performance

The Company’s NAV decreased by 5.9% during the year but at an increasingly slower rate, quarter-on-quarter, as the impact of higher interest rates and investor sentiment became fully reflected in valuations.  The quarter ended 31 March 2024 recorded a marginal increase in NAV due to profitable disposals on the back of flat valuations, suggesting an improving outlook, as rental growth and falling vacancy rates start to have a positive impact.  The first move down in interest rates should be the real catalyst for a positive shift in sentiment towards real estate investment, so later in 2024 could be a turning point in the market.

By applying its institutional expertise to the sector, through high quality asset management, covenant management and portfolio construction, the Company is able to provide an institutional offering to shareholders, generating superior income and, notwithstanding recent volatility in pricing, Custodian Property Income REIT can look back over a 10 year average annual NAV total return of 5.5% driven by strong recurring earnings with fully covered dividends.

In a departure from other cycles, the valuation decreases arising from the recent rerating have been at odds with occupational market sentiment, which has remained robust.  Our management of the portfolio and the types of assets we own are focused on areas where occupational demand is strongest, allowing us to lease vacant space across all sectors and deliver rental growth.  Both rental growth and falling vacancy have been a feature of the year’s performance, discussed in more detail in the Investment Manager’s Statement, and reflected in EPRA earnings per share increasing to 5.8p for the year compared to 5.6p in the previous year. 

Despite stability in valuations and earnings, and the prospect of rental growth, sentiment towards listed UK commercial real estate has caused weakness and volatility in the share price.  The relative weakness in the share price has enhanced the Company’s dividend yield, which we believe should be highlighted as a key metric for analysts and shareholders in assessing the ‘worth’ of Custodian Property Income REIT.  The prevailing share price implied a dividend yield of 8.3%, compared to 6.3% and 5.8% at 31 March 2023 and 2022 respectively.

The Board continues to believe in the merits of the Company’s income-focused investment strategy with an emphasis on regional, below-institutional sized assets that are well-positioned to deliver rental growth.  These types of assets provide a clear yield advantage over larger properties with similar tenant profiles and allow us to generate higher income returns and capital growth for shareholders.

Dividends

The Company’s commitment to a property strategy that supports a relatively high dividend, fully covered by EPRA earnings, remains a defining characteristic.  In May 2024 the Board announced a 9% increase in the prospective dividend per share from 5.5p to 6.0p and a special dividend for the year of 0.3p per share to take the dividend for the year to 5.8p, which is testament to that commitment.

These dividend increases, which are expected to be fully covered by net rental income, reflect the improving earnings characteristics of the Company’s portfolio with recent asset management initiatives and the profitable disposal of vacant properties also increasing occupancy and crystallising rental growth.  Our Investment Manager continues to control costs tightly, while the Company’s substantially fixed-rate debt profile is keeping borrowing costs below the current market rate.  Based on the current forward interest rate curve the Board expects that the ongoing cost of the Company’s revolving credit facility will fall, improving earnings further.

The Board’s objective remains to continue to grow the dividend at a rate which is fully covered by net rental income and does not inhibit the flexibility of the Company’s investment strategy.

VPC Specialty Lending Investments PLC

(the “Company”)

DIVIDEND DECLARATION

The Board of Directors of the Company has declared an interim dividend of 1.89 pence per share for the three-month period to 31 March 2024. The dividend will be paid on 18 July 2024 to shareholders on the register as at 21 June 2024. The ex-dividend date is 20 June 2024.

The dividend declared of 1.89p represents a 2.00p equivalent dividend adjusted to reflect the reduction to NAV as a consequence to the B-Shares issued to shareholders on 19 April 2024 and redeemed on 25 April 2024.

The Company has elected to designate all of the interim dividend for the three-month period to 31 March 2024 as an interest distribution to its shareholders, thereby “streaming” income from interest-bearing investments into dividends that will be taxed in the hands of shareholders as interest income.  No income tax will therefore be deducted at source from this, or from future interest distributions.

Foresight Solar Fund Limited

(“Foresight Solar” or “the Company”)

Declaration of Dividend

Foresight Solar is pleased to announce the first interim dividend, for the period 1 January 2024 to 31 March 2024, of 2.00 pence per ordinary share. The shares will go ex-dividend on 25 July 2024 and the payment will be made on 23 August 2024 to shareholders on the register as at the close of business on 26 July 2024.

Man writing ‘now’ having crossed out ‘later’, ‘tomorrow’ and ‘next week’© Provided by The Motley Fool

By Jon Smith

Things to start ticking off

The first step is seeing how much I can allocate to dividend shares right now. A lump sum of £1,000 or more would be great to kick off with. At the same time, I want to run my numbers and set a realistic figure of how much I can invest each month going forward. This will help me to build up my portfolio to a level where it generates income each month.

Once I’ve got my figures sorted, I need to decide where to actually invest the money. There are three main elements to this.

To begin with, I need to pick stocks that have an above-average dividend yield. the higher the yield, the higher the risk associated with the dividend payments. So I have to pick a risk level that I’m happy with.

Another element is the fundamental business operations. Is the company growing? Does it operate in a sector that has a bright future?

From zero to hero

The theory is great, but let’s now put it into practice. Let’s say I have my £1,000 initial investment ready to go and have picked Glencore, Anglo American, BT Group and HSBC as four stocks that I like.

By putting £250 in each, I’ll have a blended average dividend yield of 5.95%. Next month, I’ll endeavour to invest an additional £100 in each stock (£400 total). After a few months, I can mix it up and include some different shares. Ideally, I’d like to get the portfolio to a dozen or more stocks.

From the beginning, I know that if I can keep my average yield at 5.95%, I need to get to a pot size of just under £202k. This will ensure £1,000 of monthly second income from that point onwards.

Using that calculation, it’ll take me 21 years to reach the target. This will change from person to person based on how much someone can invest and how high a yield that can be achieved. Yet from a standing start of zero, it’s an impressive feat.

£££££££££££

Remember in your Accumulation stage if a Trust u own falls in price, as long as the dividend is ‘secure,’ u get more shares from your dividend re-investment.

A win win plan. GL

Decide what to buy when Mr. Market gives u the chance, better with a dividend as u wait to be proved correct and u need to re-invest the dividends.

TMPL current yield 3.5%, share price covid low 115p dividend 10.28p yield 8.5%. Of course u might not have bought as u didn’t know if the price was still going to fall but if u bought the yield u wouldn’t be that concerned.

When Mr. Market gives u the chance, watch your list of Dividend Heroes, belt and braces. Now that the price has risen the yield has fallen u could re-invest, by selling part or all the holding and re-invest in a higher yielder to grow your Snowball, which should be different to the Blog’s portfolio.

Remember it’s always easier in the rear view mirror, because as the yield fell to 7% u didn’t know if it was to fall further but if that was as low as it was going to get. Of course there were other Trusts to buy if u missed the one u wanted to buy.

There seems to be some perverse human characteristic that likes to make easy things difficult.
Warren Buffett

Investing doesn’t have to be scary if u take advantage of Mr. Market who is always right but sometimes not that bright.

VALUE AND INDEXED PROPERTY INCOME TRUST PLC

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED 31 MARCH 2024

Strategic Report

Chairman’s Statement

The Company’s capital performance was disappointing last year, with a net asset value total return of -9.7%. The discount to net asset value also widened, resulting in a share price total return of -10.3%. Since our year end on 31 March 2024, however, the share price has rebounded and the discount narrowed again. Rental income growth was well above inflation last year, and since the year end, 100% of rent has become index-related.

The weakness of the property market is principally the result of the abrupt end of the extended era of exceptionally low interest rates which followed the global financial crisis. Central Banks around the world have been indicating that the next moves in rates are more likely to be down than up. But we should expect a return to historical normality rather than a resumption of the near zero cost bank financing.

As a result, there are some indications that the worst is over for property, although confidence is still fragile and transaction volumes are low. The election in Britain, which will take place on July 4, may result in a degree of political stability which has been missing for most of the current Parliament. It is difficult to maintain similar hopes for the outcome of the US Presidential contest in November. In both countries, fiscal projections bear little relation to reality. The geopolitical uncertainties which contributed to the rise in inflation and consequent increase in interest rates have compounded. The war in Ukraine continues and hostilities have ravaged Palestine. The ambitions of China’s leaders are a growing source of tension and concern.

While no asset classes are immune from these factors, the Company’s portfolio of UK property assets with good locations, strong covenants and rents linked to inflation is well positioned to be robust to external events. During the year, the portfolio was strengthened with the purchase of three long-let leisure investments at yields over 8%, and the sale of seven weaker properties including the last Stonegate pub holdings. That company has since announced it is seeking to refinance its debts. All the remaining tenants appear well financed. All rent due in the last year was collected in full.

We continue to improve the sustainability credentials of our properties, post year end 100% of all Energy Performance Certificates are now A – C. All rent due in the last year was collected in full.

A major restructuring of the Company’s debt was completed last year with the repayment of the costly debenture and the Company now has a comfortable loan to value position locked in at affordable interest rates.

Underlying income growth was strong with 11 rent reviews adding 4.9% to total rental income. As the revised name of the Company, adopted in 2021 emphasises, our focus is on achieving value from secure indexed property income.

At the year end, the yield on the Company’s shares (at the proposed dividend) was 7.7% as against 0.1% on the UK Government’s 2031 indexed gilt, which is linked to the Retail Prices Index (RPI).

Some of the rents on VIP’s properties are linked to the RPI, others to the slightly slower rising Consumer Prices Index (CPI), which is the basis for the 2% target prescribed for the Bank of England. The Company’s index-related rent reviews should make it well placed to at least match inflation now it is nearer to the official target.

As anticipated, dividend cover has now been restored and the Board aims to maintain the Company’s thirty-seven year history of progressive dividend increases. The Board is recommending a final dividend of 3.6p per share, making total dividends of 13.2p per share for the year to 31 March 2024, compared to 12.9p in the previous year, an increase of 2.3%. Subject to Shareholder approval at the 2024 Annual General Meeting (AGM), the final dividend will be paid on 26 July 2024 to Shareholders on the register on 28 June 2024. The ex-dividend date is 27 June 2024.

John Kay

Chairman

The Tip Sheet
The Mail on Sunday thinks Impax Environmental Markets shares are a bargain, while The Investors Chronicle believes Caledonia can solve a quandary faced by some investors. Quandary? The Tip Sheet reveals all.

By
Frank Buhagiar
11 Jun, 2024

MIDAS SHARE TIPS: The unheralded eco firms being turned into green giants
According to the Mail on Sunday tipster, there’s one fund which gives investors exposure to ‘the unheralded eco firms being turned into green giants’ – Impax Environmental Markets (IEM), a fund that focuses on ‘small and mid-sized businesses with an environmental twist, from hazardous waste treatment in America to reusable pallets in Australia.’ The small to mid-cap focus sets IEM apart from its peers which typically invest in either unlisted cash-hungry businesses and projects, or large-scale companies that face stiff competition. It also has the potential to drive ‘faster growth over time’.

The share price is down around a third since 2021, as economic and market uncertainty have weighed on the valuations of IEM’s underlying holdings. But this works both ways – the portfolio managers are looking to take advantage of the current market environment to pick up stocks at attractive prices. Could be perfect timing as climate change continues to rise up the agenda which ought to benefit ‘companies with robust green credentials’.

Midas concludes, ‘Impax Environmental Markets has been through a rough few years but, at £3.96, the shares are a bargain. The group combines green credentials with hard-nosed commercial nous. Buy and hold.’

Investors Chronicle: A clever and cheap way to invest in private equity
Hot on the heels of last week’s tip in The Telegraph, Caledonia Investments (CLDN) finds itself the subject of another positive piece, this time from The Investors Chronicle. The article kicks off by highlighting a quandary faced by investors considering allocating a portion of their portfolios to private equity. On the one hand, there are the stellar returns generated by private equity investment trusts over the past decade, several of which have returned over 200% in this time. On the other hand, some investors will be put off by the sector’s high debt levels, particularly with interest rates high and economic conditions challenging.

What to do? Enter CLDN ‘For those who are intrigued by private assets but are unsure about whether to back a private equity fund, Caledonia Investments (CLDN) is an attractive proposition.’ Why? Because it is a multi-asset investment trust with a long-term buy and hold approach – currently 59% of assets are in private markets with the remaining 41% largely invested in listed companies. And the fund’s strategy has a track record of delivery. The IC highlights how the fund has outperformed broker Investec’s composite index (35% the FTSE All-Share; 65% the MSCI ACWI excluding the UK) – over the last five years, Caledonia has generated a +10.9% NAV return a year, compared to the benchmark’s +10.2%.

And then there’s the income. CLDN has grown its dividends for 57 consecutive years – the shares currently yield just under 2%. All of which leads the IC to write ‘Investors in search of a trust with a long-term approach, a unique strategy and growing dividends will find a lot to like in Caledonia’s portfolio’. That is ‘as long as they are happy not to shy away from private markets.’ And for those worried about investing in the private sector, the 35% discount to net assets at which CLDN’s shares currently trade at provides a useful margin of safety.