|I have started a new BB thread for this Investment Trust (since change of name and ticker, hence thought it would be more relevant), if anyone is interested:
All are welcome
Tamar European Industrial Fund Limited (TEIF)
|....How about 34p? Surely good value here....even in these torrid times!|
|Adjusted NAV 81p, increase in retained profits 1.8p for the quarter, increased portfolio yield and occupancy, "signs of improvement" (in the market).
All for 36p, can't complain! K.|
|Nice recurring profit figure. Once hedges come off we should be generating very strong underlying earnings.|
|IMS on queue. Adjusted NAV has stabilised with a small increase to 80.9p.
|Last two Q1 IMS releases have been 19th May (although clearly management has changed since then).|
|More good work from KEIF. Net asset value continues to look increasingly robust and discount too wide.
"Kenmore European Industrial Fund is pleased to announce that it has sold a light industrial asset in Fyllinge, to the south of Gothenburg, Sweden, to a private investor for a net price of £3,452,750 million (SEK 38,000,000) after deduction of an allowance for latent capital gains tax. The net sale price is 1.4% above the property's December 2009 valuation."
|Interest rate hedges are coming to an end soon. They should hopefully be able to take advantage of lower rates. Margin on the loans will increase but their LTV compares very favourably with the other Euro trusts in London.|
|Another small sale. With quality European properties now rising in value the discount to NAV looks too high to me. Positive refinancing news and a more progressive dividend policy should get things moving in the right direction.|
|So it looks like billionaire entrepreneur Joe Lewis has bought a further stake in KEIF through his Brockland company.
Tamar Capital (which now owns KEIF's investment manager, Kenmore Financial Services) is also owned by the family trusts of Joe Lewis.|
|Brockland Inc. now own over 20% of KEIF.
Kenmore Eur Ind Fund
Amended Holding(s) in Company
|Hansteen Holdings PLC have sold completely out (see RNS below):
|Knight Frank's European Logistics and Industrial Report 2010
Though prime logistics rents fell across Europe over 2009 in line with weak demand, the few deals that were done tightened supply - a trend expected to continue over 2010 due to the scarcity of speculative development.
Knight Frank's European Logistics and Industrial Report 2010:
|The interest rate swap liability of £7.396m at 31 December 2009 will be tending to nil as the swaps reach expiry (unless they close or roll any of them). This should be worth around 5p per share on NAV.
"Interest rate exposure has been limited by the purchase of interest rate swap contracts. The Group has entered into interest rate swaps with a notional amount of £216,478,000 (2008 £292,127,000) to hedge the exposure to changes in interest rates. The swaps fix the interest rate payable for a weighted average period of 1.6 years (2008 2.6 years) to a weighted average rate of 4.08%, and a total rate inclusive of margin of 5.07% (2008 4.13% and 5.11% respectively). The fair value of the interest rate swaps at 31 December 2009 amount to a £7,396,000 liability (see note 14) (2008 liability £8,988,000)."
|Recovering global economy to improve property share performance
12:11 | 06.04.10
Continued recovery in the global economy will drive an improved performance of real estate stocks this year and next, according to LaSalle Investment Management.
|Looks like a very good deal for Hansteen. Small wonder that they turned their backs on KEIF. Having had a quick look at Hansteen though, I don't fancy them as an investment, whereas I still have KEIF on my watch list.|
|This is why Hansteen walked away from KEIF:
|Good to see NAV stabilised, dividends continuing and a few more disposals in the pipeline to ease refinancing. Key next news to move the share price upwards is the refinancing. I suspect they may want to refinance it all in one go.
Has anyone seen a release with the full notes (this link stops at note 1)?
"Following on from these disposals, a key focus of the Fund is the Company's capital structure including the debt financing in place. The Fund's loan facilities, currently amounting to £198.6m, expire in three tranches in October 2010, April 2011 and November 2011. The Fund is currently in discussions with a number of lenders and is hopeful that a refinancing deal can be achieved at a gearing level that is both attractive to the Fund and in line with current market trends. Further disposals may be required to achieve appropriate gearing levels under any revised facilities."
|So no funding issues mentioned............|
|"A key focus for the Fund remains to reduce gearing through targeted sales, with £14.9m of assets currently under offer"
Hopefully once more at well above valuation...|
· Adjusted net asset value* per share at 31 December 2009 of 79.8 pence, down 28.8 pence from 108.6 pence at 31 December 2008 but up 0.6 pence from 79.2 pence at 30 September 2009
· Successfully sold 31 assets for £92.1 million
· Net gearing if all cash balances were applied would be 60.2%
· Underlying portfolio values have decreased by 9.58% over the year
· Further 0.75 pence dividend announced bringing total dividend announced in respect of 2009 to 1.50 pence per share
· Intensive asset management and ongoing leasing activity resulted in 61 new leases signed and 88 leases renewed representing over 140,000 sq m of space and £7.4 million of gross annualised income.|
|(below also from todays results):
INVESTMENT MANAGER'S REVIEW
Property Market Review
Investment trading continued to pick up pace in the final quarter of 2009. Investment volumes increased by almost 20% on the previous quarter to 25 billion and up 49% on the same quarter in 2008. This was the third consecutive quarter of increasing volumes after seven consecutive quarters of decline following the global financial crisis. Overall, Europe saw 70 billion of commercial real estate change hands in 2009, which was down 38% on 2008. The 2009 figure broadly compares to trading numbers in 2001, but remains well below the record 253 billion recorded in 2006. Increasing investor confidence and trading has translated into compressing yields in some prime markets.
Occupier sentiment in the European warehousing sector strongly improved over the last few months of the year. Leasing activity continued to improve, albeit accelerating take-up in the final quarter of 2009 was achieved on the back of low volumes. Overall, take-up in 2009 has significantly declined year-on-year and take-up levels in 2010 are anticipated to remain on a similar level. Occupier demand remained most resilient in the core Western European markets, in particular Germany and France, which offer the largest modern logistics stock in combination with an excellent transport network. In 2010, both markets expect to record an annual take-up in line with the previous year (Source JLL).
Investment markets appear to have now passed the bottom of one of the worst property investment downturns on record. However, the weak economic recovery is playing into a slow and uneven rebound in corporate demand, which means investors are remaining cautious in underwriting investment deals and are looking closely at lease length and covenant strength. Refinancing remains a concern although banks now have more clarity around their real estate strategies than at the start of 2009 and a steady release of saleable assets onto the market is expected.
A key focus for the Fund remains to reduce gearing through targeted sales, with £14.9m of assets currently under offer, as well as to maximise leasing and lease renewals through active asset management initiatives, in order to ride out the shocks in the occupier markets caused by continuing economic uncertainty and instability. The Fund's diversity across a number of Western European markets and the experience of the local management teams puts it in a strong position to do this.|
|Slight increase in NAV (below from results):
The underlying performance of the Fund has been impacted by the continued fall in the commercial property market over the year. As such, since 31 December 2008, net assets per share, excluding deferred tax, decreased by 28.8 pence to 79.8 pence, a fall of 26.5%. However, in the last quarter of 2009, the net assets per share, excluding deferred tax, have actually risen by 0.8 pence.|
and with a further Dividend payment (shows confidence):
Kenmore European Industrial Fund Limited today announce a further interim dividend, in respect of the financial year ended 31 December 2009, of 0.75 pence per share as follows:
Ex dividend date - 14 April 2010
Record date - 16 April 2010
Payment date - 30 April 2010
|On the face of it you would say that a fund raising was on the way from the lack of response from the company.
On the other hand would Laxey, who presumably know what is going on, be able (or wish)to purchase under such circumstances|