HGH - Heartland Group Holdings

[Beagle]

Full year forecast looks extremely conservative ($77 - $80m) relative to the result just achieved ($39.9m) and suggests they think impairments will go up in 2H even if nobody on here thinks so. Maybe they think this new virus might affect the economy materially and people and some business's ability to service their loans ? Maybe they're right to be conservative in the circumstances ?

I for one am not getting carried away and see fair value at present as $1.89. I suppose you could pay up to $1.935 inclusive of the pending 4.5 cent fully imputed dividend.

Hey Winner - I worked these numbers out with my old steam powered slightly rusty abacus...not bad for a motley old mutt, and it seems the market agrees.

[janner]

They are just doing what they say they will do

https://www.youtube.com/watch?v=957Zr2Pre2s

Aye percy ?.

[jonu]

I reckon the institutions will set the tone this afternoon once they have had time to digest and set their strategy. This mornings flurry will have been Mum & Dad's. Volume to come with the battleground @ 1.90 I think. Once it breaks through that on volume it will be onwards and upwards.

[RTM]

I reckon the institutions will set the tone this afternoon once they have had time to digest and set their strategy. This mornings flurry will have been Mum & Dad's. Volume to come with the battleground @ 1.90 I think. Once it breaks through that on volume it will be onwards and upwards.

“ The resulting gross dividend yield was 8.3% .”
Agree Jonu, but I think even the Mum & Dad activity will take the price higher, as the dividend yield is very high,

[winner69]

Last year it was pointed out H119 relatively poor result was impacted by ~$2m of non-recurring studd related to restructure. Explained why 6% growth wasn’t too bad

No mention this time around as 20% plus is amazing

On the good old ‘normalised’ basis earnings growth H120 was only about 10%

Still pretty good but not amazing

[percy]

I knew I received something in my hundreds of emails yesterday!

We are excited to announce Heartland Bank is now offering Reverse Mortgages against investment properties and holiday homes with our new feature, Secondary Property Loans.

A Secondary Property Loan allows people aged 60 years and over to enjoy a more comfortable retirement by accessing equity from their secondary property, rather than their primary residence.

Like our regular Reverse Mortgage, Heartland’s Secondary Property Loan can be used for a variety of different purposes including home improvements, debt consolidation, travel or just taking the stress out of everyday bills.

The Secondary Property Loan may suit those who do not want a mortgage against their primary residence or those living in a retirement village who still own a property.

We continue to offer the protection of a Heartland Reverse Mortgage, including our three promises:

· Lifetime Occupancy Guarantee – your home will remain the place you live in for as long as you choose

· No Negative Equity Guarantee – the amount required to repay your loan will never exceed the net sale proceeds of the property

· Loan Repayment Guarantee – there is no requirement to make any loan repayment until the end of your loan, although you may do so at any time without penalty costs.

The interest rate for a Secondary Property Loan is the same as a Heartland Reverse Mortgage, with a floating rate of 6.95% p.a.

The loan is due to be repaid when the borrower sells their investment property or holiday home, or when they move permanently from their primary residence.

Thanks for finding that.
I am surprised,but I guess it makes sense.

[dabsman]

Thanks for finding that.
I am surprised,but I guess it makes sense.

I think it is great. Imagine someone with a rental property who needs to do some desperately needed maintenance. Spend 50k and increase rent $100 a week. The interest cost is compounded to the loan and the increased rent is pocketed - win win and if the owner occupied home is sold this rental REL is required to be repaid. Safe as houses? Safer I'd say

[percy]

I think it is great. Imagine someone with a rental property who needs to do some desperately needed maintenance. Spend 50k and increase rent $100 a week. The interest cost is compounded to the loan and the increased rent is pocketed - win win and if the owner occupied home is sold this rental REL is required to be repaid. Safe as houses? Safer I'd say

I am slowly getting my head around it.
My mind set has been along the lines people keep their house debt free, while mortgaging rentals.Have not thought of people not having rentals debt free.

[winner69]

And leaving upgrading FY guidance for another day

Clever ploy

As Snowie says H2 profits will be flat if not down if $80m npat remains guidance

C’mon Jeff, get real or you’ll end up like the Blis man in losing credibility

Maybe the timing of the inevitiable profit upgrade is related to the LTI scheme or something

[jonu]

As Snowie says H2 profits will be flat if not down if $80m npat remains guidance

C’mon Jeff, get real or you’ll end up like the Blis man in losing credibility

Maybe the timing of the inevitiable profit upgrade is related to the LTI scheme or something

It's a strange old fence you're sitting on there Winner. Your comments have been a bob each way through the day.