Rawson Developers’ sale of more than 100 new residential units this week shows that the residential property market remains alive, but for how long? The Browns tight end requested a trade Friday. Where might he land? JTC’s’s (LON:JTC) stock is up by a considerable 14% over the past three months. Given the company’s impressive… PORTSMOUTH — With many Fourth of July events canceled due to COVID-19, an old tradition was brought back to Market Square Saturday.Three ordinary citizens stood in front of North Church, and each in turn, read a section of the Declaration of Independence as people gathered to watch, some wearing masks and other choosing to rely on social distancing to keep their safety.”We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with
- Rawson Developers launched and sold more than 100 new residential units this week. The company says demand remains high in Cape Town.
- Ithemba Property Development says, like essential goods, affordable rental units have become resilient to income fluctuations.
- But FNB economist John Loos says the impact is yet to be felt in the residential market.
On Monday, Rawson Developers sold more than 100 units in its new live-and-pay development in Cape Town’s southern suburbs.
Never mind that it was still in the middle of a lockdown in SA and that an increasing number of companies are announcing intentions to retrench staff.
In fact, in April, in the heart of the lockdown, the company sold out its other development in Observatory – also in Cape Town.
But Rawson Developers had to be a bit creative to boost demand. The developers guaranteed investors rental for the first year when the units are ready for occupation in 2023.
Similarly, when launching its new development this week, the company marketed some units on online deals site OneDayOnly, offering hefty discounts, including one of more than R250 000.
Also, all this is now happening online, which requires a big mindset shift. Given that property is the biggest investment most people ever make, it usually makes them uneasy about signing on the dotted line without physical interaction.
Half of the development was sold in the first day, and these aren’t necessarily cheap properties. The cheapest “micro” unit retailed at more than R1.1 million with the OneDayOnly discount, and the most expensive penthouses cost around R13 million. All 60 of the micro units were snatched up within hours.
“Cape Town has always had amazing demand. We are close to UCT, so we do get a bit of the student population coming through. This specific area of Cape Town definitely has high demand. I think a lot of other developers are probably worried and holding back till they feel more certain,” said Brad Morgan, marketing manager for Rawson Developers.
This demand in Rawson Developers’ residential units is in stark contrast to what the Covid-19 pandemic has done to the commercial property market, especially retail and office sectors, where landlords have had to cut their rent to keep tenants or live with vacant spaces as the work-from-home movement grows.
People still need to live somewhere
JSE-listed Atterbury, which has mixed-use and residential developments in Johannesburg’s inner city, said while it observed a “slight slump” in its collections during the hard lockdown, the demand for affordable residential units remained resilient and its collections have recovered to near-pre-crisis levels.
“[The] residential property market is not homogeneous, and different parts of it respond differently to different stimuli or shocks like Covid-19,” said Carel Kleynhans, director of Ithemba Property Development, one of Atterbury’s partners in the inner-city residential developments.
He said while the markets for luxury seafront property, “walk-up” flats and inner-city affordable rental would respond very differently to various economic circumstances; the company has found that in the current crisis, affordable and well-located rental accommodation acts more like “an essential good” as it is very resilient to income fluctuations.
“When times are tough, people economise on their expenditure and often move to a smaller, better-located place – but at the end of the day they still need to live somewhere,” he added.
Morgan said to sell upper-end rental units, developers need to be even more creative than they were before.
“We’ve basically created a five-star hotel living environment but in an apartment block,” said Morgan, adding that to cater for the price-conscious consumers, Rawson Developers created the 29 square metre “micro” units, but had to make them liveable by providing more sharing facilities within the development.
But residential property may yet feel the Covid-19 impact
However, John Loos, economist at FNB Commercial Property Finance, said while residential property may experience less of a dip than retail and office property, this sector of the market is still going to feel the harsh impact of Covid-19.
“I do believe that residential will see some significant full-blown decline in values, with demand weakening in response to what looks like a severe recession, employment and household income loss. Yes, the affordable segment is likely to come off less impacted than the higher end, with a greater search for affordability in times of financial pressure,” he said.
That said, Loos added that he did not believe that any segment could escape without some downturn and that individual developments didn’t quite present a picture about the overall market.
With Statistics SA’s building data showing that the number of residential units plans passed declined by 15.2% in 2019 and sharper year-on-year decline in the early months of 2020, Loos says time will tell how 2020 ends.
Author: Londiwe Buthelezi
3 Teams That Could Trade For Browns Tight End David Njoku
CINCINNATI, OH – DECEMBER 29, 2019: Tight end David Njoku #85 of the Cleveland Browns warms up prior … [+] to a game against the Cincinnati Bengals on December 29, 2019 at Paul Brown Stadium in Cincinnati, Ohio. Cincinnati won 33-23. (Photo by: 2019 Nick Cammett/Diamond Images via Getty Images)
Browns tight end David Njoku requested a trade Friday afternoon. Reports indicate that the Brown would like to keep Njoku, but according to Njoku’s agent, Drew Rosenhaus, “It is in David’s best interest to find a new team at this time.”
Njoku’s role in the Browns offense figured to shrink after the Browns made Austin Hooper the highest-paid tight end in football. And if Friday’s trade request is any indication, Njoku prefers not to share targets at his position.
With that in mind, here are three tight end-needy teams that could engage the Browns in a trade for Njoku.
Green Bay Packers
Jimmy Graham caught 93 passes for 1083 yards during his two-season stint in Green Bay, and there’s no obvious replacement on the roster. Asking 36-year old Mercedes Lewis to match that production is unrealistic, and the rest of the Packers’ tight ends have caught a combined 21 career passes.
That’s not an ideal setup for Packers coach Matt LaFleur, who likes to call plays out of two tight-end formations. LaFleur was the Titans’ offensive coordinator in 2018, when Tennessee ran 30 percent of its plays from 12 personnel (one running back, two tight ends), which ranked third in the NFL. That number dropped to 20 percent when LaFleur got to Green Bay last season, but that could be attributed to the Packers’ lack of tight end depth.
Now they’re even thinner at that spot, and the Packers possess three fourth-round picks and two sixth-round picks in the 2021 draft. It’s worth calling the Browns and offering a few of those surplus draft picks.
New England Patriots
The Patriots drafted both Devin Asiasi and Dalton Keene in the third round of the 2020 NFL draft, but it’s unclear whether those rookies will be ready to play after the virtual offseason. Matt Lacosse, who has caught 40 passes in his five-year career, has caught more passes than any other tight end on New England’s roster.
Along with the need, the Patriots have a history of trading for disgruntled players and helping those players find success. Players like Darrell Revis and Jamie Collins revived their careers after signing in New England.
The question would be the price. After spending two third-round picks on tight ends in this past year, would the Patriots be willing to part with more draft capital?
The Texans’ tight-end room could use an upgrade, too. And like the Patriots, they telegraphed as much by spending a third-round pick on Kahale Warring from San Diego State.
The Texans targeted their tight ends on 20 percent of their pass plays last season, which ranked 15th in the NFL. That’s a high number considering their tight ends consisted of Darren Fells, who’s largely been a blocking tight end during his six-year career, and Jordan Akins, a 28-year-old who had never played in the NFL before 2018.
After trading Deandre Hopkins, the Texans could use a dynamic weapon like Njoku, who is familiar with Fells from Fells’ 2018 stint in Cleveland. Drafting a tight end this year might preclude the Texans from trading for Njoku, but again, the virtual offseason could be tricky for rookies to navigate.
Plus, we all know Bill O’Brien loves trading draft picks.
Author: Jimmy Watkins
JTC PLC’s (LON:JTC) Stock’s On An Uptrend: Are Strong Financials Guiding The Market?
JTC’s’s (LON:JTC) stock is up by a considerable 14% over the past three months. Given the company’s impressive performance, we decided to study its financial indicators more closely as a company’s financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to JTC’s ROE today.
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In simpler terms, it measures the profitability of a company in relation to shareholder’s equity.
See our latest analysis for JTC
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for JTC is:
13% = UK£17m ÷ UK£129m (Based on the trailing twelve months to December 2019).
The ‘return’ is the amount earned after tax over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.13 in profit.
Thus far, we have learnt that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or “retains”, and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
At first glance, JTC seems to have a decent ROE. Be that as it may, the company’s ROE is still quite lower than the industry average of 19%. Still, we can see that JTC has seen a remarkable net income growth of 66% over the past five years. We reckon that there could be other factors at play here. Such as – high earnings retention or an efficient management in place. However, not to forget, the company does have a decent ROE to begin with, just that it is lower than the industry average. So this also does lend some color to the high earnings growth seen by the company.
As a next step, we compared JTC’s net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 14%.
LSE:JTC Past Earnings Growth July 5th 2020
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock’s future looks promising or ominous. What is JTC worth today? The intrinsic value infographic in our free research report helps visualize whether JTC is currently mispriced by the market.
JTC’s three-year median payout ratio to shareholders is 12%, which is quite low. This implies that the company is retaining 88% of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.
Along with seeing a growth in earnings, JTC only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders. Looking at the current analyst consensus data, we can see that the company’s future payout ratio is expected to rise to 25% over the next three years. Still, forecasts suggest that JTC’s future ROE will rise to 17% even though the the company’s payout ratio is expected to rise. We presume that there could some other characteristics of the business that could be driving the anticipated growth in the company’s ROE.
In total, we are pretty happy with JTC’s performance. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. Having said that, the company’s earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Author: Simply Wall St
‘Safety and Happiness’: Declaration of Independence read in Market Square
PORTSMOUTH — With many Fourth of July events canceled due to COVID-19, an old tradition was brought back to Market Square Saturday.
Three ordinary citizens stood in front of North Church, and each in turn, read a section of the Declaration of Independence as people gathered to watch, some wearing masks and other choosing to rely on social distancing to keep their safety.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”
As he read the cherished words, Ryan Terrell of Nashua created an air of solemnity. Not a sound was heard from any of the people gathered.
Terrell, a state representative candidate, was followed by 12-year-old Charlotte Godfrey of Portsmouth, who wore the uniform of Girl Scout Troop 164.
“She is working on her public speaking badge,” said Sue Polidura, the third speaker and organizer of Saturday’s event.
“I did this in the square several years ago,” said Polidura, who is a state Senate candidate from Portsmouth. “Someone suggested we do it again this year because so many other things are canceled. I agreed and invited some people to speak, and here we are. Maybe a new tradition will happen.”
Robin Rousseau of Portsmouth was instrumental in seeing the tradition revived. She wrote a letter to the editor May 29 because she was upset that activities did not happen on Memorial Day because of the coronavirus.
Rousseau wrote “On Memorial Day, my friend and I walked through North Cemetery on Maplewood Avenue to pay respects to the great men of our community who had the courage to participate in the Revolutionary War. Buried there are two signers of the Declaration of Independence – Whipple and Langdon. There are many others who contributed to the war by storming Fort William and Mary for ammunition and those who fought on the battlefields. And yet, no one took the time to place American flags at their graves. These people are the veterans of all veterans. Without their tireless efforts to form a new, free nation, the quality of your life and mine would be dramatically different.”
Rousseau said at a time when freedom is unstable it is more important than ever to stand for the country and for those who fought for it.
Terrell is a New Hampshire resident who arrived by way of New Orleans.
“I moved to New Hampshire in 2011 to study at Southern New Hampshire University,” he said. “I loved it here and stayed. It was an honor to be asked to read the words of the forefathers today.”
Jeff Chidester, a Rochester resident, WGIR FM radio show host and Seacoast Sunday opinion columnist, served as master of ceremonies.
The Piscataqua Rangers Jr. Fife & Drum Corps played a round of patriotic tunes before and after the reading.
Author: Karen Dandurant