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PSPI Public Services Properties Investments

335.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Public Services Properties Investments LSE:PSPI London Ordinary Share VGG729641511 ORD USD0.01 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 335.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Public Services Properties Share Discussion Threads

Showing 1876 to 1900 of 2175 messages
Chat Pages: 87  86  85  84  83  82  81  80  79  78  77  76  Older
DateSubjectAuthorDiscuss
10/7/2012
15:59
I thought the UK assets looked overvalued (valuation extract below). Rental yield at 6.16%, but it is probably actually higher on ECG assets due to non-trading assets and licence fee. ECG will be in a stronger position post transaction, but I can't see anyone viewing ECG as a strong covenant tenant. Given the assets are performing well, but ECG is a weak covenant I would expect around 8% would be about right.

I can't see an equity fundraising though. They have just given away most of their UK assets for an upside option with a current value of nil.

The key value seems to be in the German assets. The UK assets look potentially refinanceable, but I doubt there will be a stampede. Perhaps a facility extension with the existing lender is the one to try and go for.

"We are also providing below our opinion of the value of the freehold investments to be retained by PSPI post the ECG transaction having regard to the current rent cover and assumed enhanced covenant strength of the ECG post-transaction but taking a view on the effect of the current covenant and performance issues explained above has on the value.

It is our opinion that the Market Value of the freehold investment portfolio to be retained by PSPI post the ECG transaction which is currently achieving a rent cover of 1.77 and rental is received at the current rate of £3,144,613pa, plus the licence fee received in connection with the ECG supported living business in Merseyside and the non-trading assets (office in Liverpool, plus
development site with planning consent and a private house) is at the date of valuation: £51,072,000
(Fifty One Million and Seventy Two Thousand Pounds)"

scburbs
10/7/2012
15:54
Why do you think the UK assets are overvalued ?
kimboy2
10/7/2012
15:47
I thought they killed you. :)
greedfear
10/7/2012
15:42
I agree with the comment above that there remains the problem of £24m of debt that has to be refinanced within 12 months. The other problem I see is that the remaining assets are still overvalued - both those in the UK and the US post offices. Don't know about the german assets.

Therefore, I belive a fundraising by PSPI is still very much on the cards. It is going to have to be at a big discount because there is still a danger that ECG goes bust, meaning a new operator for the UK care homes - at a much reduced rent payable to PSPI.

kenny
10/7/2012
15:09
Clear. It's only a matter of presentation. No possible (future) change in NAV because of it. 13.9 million of long term liabilities are on 30-6-2012 factually current liabilities.

Don't think the issue is refinancing/repaying 24 million GBP given the LTV of 41% or so.
It will get financed in my opinion and I do think non-UK properties will be sold before that (and that would solve the financing "issue" too).

greedfear
10/7/2012
13:39
Isn't the issue here that PSPI still have £24m of borrowings that need refinancing/repaying in the next 12 months?
stemis
10/7/2012
11:48
Amendment to Pro-Forma Statement included in the Circular dated 6 July 2012
fangorn2
09/7/2012
10:15
Anyone: is it correct that TODAY a sell of 386,000 @17p on 5-7-2012 is reported?

If so. I'm getting sick and tired of those late reported transactions on AIM. It's starting to look more like a rule than an exception to report important transactions only end of day or days later.

Don't know the LSE rules here, but it's wrong.

greedfear
09/7/2012
10:03
@davidosh: What makes you think there'll be a presentation?

@misterMD:
it's a done deal, it's an ordinary resolution so >50% votes would be sufficient.

greedfear
09/7/2012
08:32
re: the above,
- isn't that already a sufficient % for this to go through ?
- shocking how few shares the directors seem to own
- does anyone have any info on Elliot and DBH - who are they, can't seem to find any info

mister md
09/7/2012
08:31
12. Irrevocable undertakings

Each of Elliott International, L.P., USIGH Limited, and DBH Global Holdings Limited has irrevocably undertaken to vote in favour of the resolution at the General Meeting in respect of their aggregate holdings of 76,231,855 shares amounting to 72.35 per cent. of the issued ordinary share capital of the Company.

Furthermore, those directors of the Company who hold shares have irrevocably undertaken to vote in favour of the resolution in respect of their own beneficial shareholdings, amounting in aggregate to 159,807 shares (representing approximately 0.15 per cent. of the issued ordinary share capital of the Company).

mister md
08/7/2012
11:23
For those wanting to question management and understand more about this deal before the voting takes place I am fairly confident that a presentation will take place on Monday 16th July but just waiting for confirmation.
davidosh
08/7/2012
09:21
It was funny when the RNS came out. The MMs did not move the share price and there was a good 10 minute pause before people started buying. I usually like mid afternoon RNSs but that was certainly some read and to then try and react to it.

I think further clarification is needed to reassure the markets but the feel to me is a positive one. This bulletin board has several folks who have knowledge of this sector but the opinions very far apart. I suspect that if all these people did not have an interest - long or short the gulf in opinion would be far narrower. That is proven by the contrast in comments between posts made now and previously by some of the negative posters.

That's why it is often best to note the information and opinions but ignore the advice.

Now I have absorbed everything I am sticking with a share price target of 34p. No advice intended and it may take a while to recover to that point.

loverat
07/7/2012
21:09
We do know the rents, we do know normal yields and therefore we can have an idea of the value. Than we have a professional party valuing the properties. Based on all that info we pay 26% of NAV.
If in doubt don't buy.

greedfear
07/7/2012
20:35
But that's exactly the problem, 26% could be far too high because the NAV isn't real. We just don't know and I suspect that most of the analysts don't either.
goliard
07/7/2012
11:22
After careful reading: you could be right.
But why put that in small print and so hidden away?

Factually it could become (is) an improvement.

No value acknowledged, but yet if ECG pays our NAV will improve with 13.9 million.

If EC goes bust then who'll tell what the 10 homes will be worth?
Currently feeling comfortable with 51 million value.

Trading at 26% of current NAV is far too low.

greedfear
07/7/2012
08:47
I think that there is another £13.9m to come which isn't in the gross figures. As it has t come from EC I don't think it is guaranteed and is therefore ignored.

There could be many reasons why this is delayed. I suspect it may be that all the loan isn't being released to EC till certain things are achieved which will take time.

I thought the accounts of EC are pretty opaque (though I am not an expert), and I think there may be a reason for this.

If the shares in Esquire are worth anything or the loan is repaid will be a bonus. The real question is whether the £51m valuation of the 10 homes stands up and in particular what are they worth if EC went bust.

Well Colliers say the homes are worth £51m with rent cover of 1.77. The rent is £3.14m which I presume means that the PBT of these homes, minus central costs, is £5.55m.

That gives a return of 11% to a potential purchaser which I suspect is probably something like the market rate.

kimboy2
06/7/2012
20:00
Kimboy2- I disagree. It's probably due to this:

(c) Write off of intercompany balance within the wider PSPI Group

and this:

(6) Current liabilities adjusted to include a provision of £2.5 million in respect of costs relating to the Transaction.

So a loss (write off) on loans and receivables from PSPI former subsidiaries, and extra costs because of the transaction. That has got nothing to do with valuation of non UK properties.

(The remark concerning the 13.9 million just clarifies that there may have been reason to treat the 13.9 million as current liabilities (which it are per 30 june 2012) but is treated as non current (long term loan) because numbers of 30-12-2011 are used.

greedfear
06/7/2012
19:33
So there is value to be had here at 18p or too risky ?
mister md
06/7/2012
17:59
Circular is on the website;



The occupancy at EC is down to 80% which is relatively poor, though the occupancy in the retained properties is 88%.

The valuation of £71m is worked out on page 71. they say;

(5) Long term borrowings include £13.9 million of debt at 31 December 2011 which will mature in less than twelve months at 30 June 2012, which has not been adjusted above. These will be repaid by the European Care Group as part of the Transaction.

That, I think, would make it £84m. there is probably some devaluation of non UK assets to come though.

kimboy2
05/7/2012
11:09
Kimboy2-

I do not think we can assume the 20% holding in Esquire Holding is worthless.

Esquire (Holding) is the holding company.

Colliers is talking about ECG but that probably has to be read as Esquire Realty.
ECG (Esquire Realty?) having assets of 331 million and 316 debt (259 net debt + 57 loan notes)doesn't really say much about the value of ECG business [which is not realty] nor about the value of the Esquire Holding participation.

What if ECG busines has no value, but the assets are 331 million and debt is 316, BUT....the 57 million loan notes have to be paid to .......exactly... Esquire holding!

ECG might have zero value then, but Esquire holding can have value.

As I do not have enough info I do not take any Esq Hold value into account but am fully aware of the fact that it might have or get (great) value.

greedfear
05/7/2012
10:15
Kimboy2- According to financial results 2011, adjusted profit after tax:

US 0.7 million GBP, Germany 1.9 million GBP Switzerland 0.6 million = 3.2 million

2010: US 1.0 million, Germany 2.2 and Switzerland 0.5 = 3.7 million.

AVERAGE US, Germany and Sw. 3.5 million GBP.


Net investment value of the remaining UK property is 51 million GBP (is approx 30% of total UK portfolio).
Total UK adjusted profits after tax: 2011 7.1 million, 2010 4.2 million=> average 5.7 million GBP.

If the remaining UK property is responsible for 30% of profits (prorata to value) then that would make 1.7 million (30% of 5.7).

Remaining UK property has lower LTV (41%)than the sold property so the profit contribution should be over 30% from total.

I see as a minimum: 3.5 average US, Germ, Sw + >1.7 average remaining UK = >5.2.

IMO 6 million is quite possible.

greedfear
05/7/2012
09:38
I think we can assume that Esquire is valueless.

Colliers estimate the post transaction assets of EC at £230m and gross debts of £326m. They add that if everything goes to plan the assets value may rise to £331m by 2016.

Basically Lloyds are keeping it going to avoid the publicity of chucking old dears out on the street and in the hope of the market improving to get their cash back.

The deal that PSPI cut shows the value of a non recourse loan which is often underestimated.

The loss of profit is estimated at £4.3m. The previous years figures were an adjusted £7.9m.

PBT of perhaps £4-5m after reduction in costs.

kimboy2
05/7/2012
09:24
I'm thinking yearly net profit after tax of approx 6 million GBP.
So approx 6p per share.

We'll just have to wait and see how the 20% participation in Esquire (holdingco of ECG) turns out.
We sacrificed 33 million or so (in fact much less as the value of the property involved was significantly lower compared to 31-12-11) but got a 20% part of a larger company in return.
In fact I think we haven't sacrificed anything because without this deal we would have lost that portfolio part too without any compensation for it.

Now we've got a 20% participation in a company that has better chances to survive (lower costs: interest on loans < rent of property).

greedfear
05/7/2012
07:29
Hahaha, you've got to love this. People taking their yesterdays profits allready. Clueless.

Edit: 15% down on 60k volume?

greedfear
Chat Pages: 87  86  85  84  83  82  81  80  79  78  77  76  Older

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