Tamar European Share Discussion Threads

[kenny] 07/10/2013 12:59

Now able to firm up my estimates. I reckon we could have a return of capital of 7p per share, a reduction of LTV to 50%, a £4m cash float retained by TEIF and the property that remains could produce EPS of about 4p per annum.

Therefore, to me, the shares at 37p look cheap. At 37p less a return of capital of 7p means that the remaining investment should produce dividends paid of, say, 3p per annum, out of total earnings of about 4p per share - a 10% yield.

The above is based on numerous estimates, the most material of which is that a) operating expenses are contained at the level of the interims to 30.06.13, b) the interest rates on refinancing are at about the current level (I have assumed the company will choose to take out new interest rate hedges albeit I do not think they should on a cost/benefit basis), c) the company decides to pay out most of its earnings as dividends e.g. 3p out of 4p albeit any retained earnings add to NAV.

As always, do your own research and do not invest solely based upon anything you read on a bulletin board!

[kenny] 03/10/2013 15:30

My rough calculations indicate a return of cash to shareholders, in due course, of between 5p to 7p per share. This is on the basis that overall LTV is brought down to 50% by application of part of the cash and also that the company retains £4m of cash as a float.

Anyone else tried to estimate what the figures might be?

[sharpshare] 10/9/2013 17:03

Just gone ex div .75p
Nice 44% discount to NAV at share price of 34.75p
low LTV of around 40%

Many UK property closed end funds are trading at a premium to NAV.
Many Euro area property closed end funds are trading at a big discount to NAV.

Mr Market currently likes UK property funds, Mr market is not keen on Euro area property funds, Mr Market will change his mind over time.

If Euro area property has stopped falling in value then Euro area property companies at big discounts are extra cheap.

[tiltonboy] 06/9/2013 11:32

I didnt pick up anywhere near enough TEIF, and putting clients first means that I havent been able to add to my holding.

In the case of LSR, I think your projections are about right.

[skyship] 06/9/2013 11:28

David - once we've consolidated and cleared the 36p/38p range, then why not a run to the Jun'11 levels...could well happen within a year. and that 4.6% also well worth having! I added a few @ 32p today....too few it would now seem...

Tilts - nicely timed with both TEIF & LSR. On the latter, do you think I'm being too conservative with my projections? Do you have a target in mind and a view as to what New Solera might do?

[gingerplant] 06/9/2013 09:13

Thanks Nick

One my Google spreadsheet I still have the rather optimistic "49p?" typed into my target sell column - but the question mark gives a hint as to my confidence of achieveing it and, until then, 4.6% will have to do.

[tiltonboy] 06/9/2013 09:00

I've been trying to buy them all week, and my bids on the board have not been touched. Reluctantly bought a few at the offer yesterday, which I hate doing on such wide spreads.

[skyship] 06/9/2013 08:46

David - "This gives more on the impression that it's jobs for the boys with a 1.5p divi to keep shareholders at bay??"

Regretably I too have my fears over the governance here. It really is about time for a Strategic Review; though they've already been doing that for years, so straight to a 2-year liquidation would be the right decision...

Still, they are now even better value; and the gap back up to 36p (See post No.444 above) looks to be on the cards in the short-term.

[gingerplant] 06/9/2013 08:39

It's a small piece of good news and welcome of course. But it's a pity there isn't more of an endgame here for us holders - i.e. a planned wind-down, or a statement of intent to distribute cash following disposals rather than focussing more on France. This gives more on the impression that it's jobs for the boys with a 1.5p divi to keep shareholders at bay??

[scburbs] 06/9/2013 08:13

Some positive disposal news. Hopefully they can start to get some traction on the disposal programme again.

"Tamar European Industrial Fund today announces that it has sold two assets in Belgium and one in each of Finland, France and Holland for a combined consideration of £6.6 million. The total sale price was 5.2% above the latest Fund valuations."

[scbscb] 04/9/2013 17:37

A puzzle? There always appears to be a high tax charge despite consistent losses after revaluations, however the tax paid is tiny and the tax liabilities do not appear to of increased?

After a quick look at the accounts a few things puzzle me. First there is the high tax charge (on a reported loss) in the P&L of £2.345m. yet in the Cash Flow statement this has not been paid (it is shown as cash in after the loss). And further down in the cash flow there is a taxation paid of £341,000.
Also again looking at the cash flow the tax charge of £1.833m for 2012 was not paid, but there was a tax received of £760,000. Although the deferred tax liabilities and deferred tax assets on the balance sheet have hardly moved.

I was interested as the tax charge is high yet the cash going out is only a fraction of the charge.
I would appreciate any comments from people who have a better understanding of accounts and tax matters.

Cheers, Jeff

[scburbs] 30/8/2013 18:10

Solid results. Good to see operating cashflow at £5.176m.

They are holding far too much cash. You have to hope that Deutsche Bank don't want to meet their extension obligations and TEIF have made them a discounted take out offer. Difficult to see any other reasons for holding so much cash given the expensive debt.

The manager has until 30 June 2014 to make get funds distributed to shareholders before their reward tails off.

[skyship] 30/8/2013 16:34

Interim Dividend

Tamar European Industrial Fund Limited today announces its interim dividend, in respect of the period ended 30 June 2013, of 0.75 pence per share as follows:

Ex-Dividend Date - 11 September 2013
Record Date - 13 September 2013
Payment Date - 27 September 2013

[ceaserxzy] 29/8/2013 14:08

Anyone know when the result is due? Last year it was the 28th August.

[skyship] 14/8/2013 12:20

At some stage we've got the 30p-36p gap to fill...

[scburbs] 14/8/2013 09:02

First signs of a bit of life in the French economy. Should be good for TEIF, hopefully they can start shifting/leasing some of excessive portfolio of French properties.

"Meanwhile, France confirmed it had pulled out of a mild recession after it reported better than expected growth figures of 0.5 per cent during the second quarter."

[flying pig] 06/8/2013 14:45

Divi and huge discount and some cash to return......
Perhaps not exciting but certainly firm hold.

[badtime] 06/8/2013 10:04

cheers sky... limited and least theres a divi

[skyship] 06/8/2013 07:54

Still waiting for Godot...

Interims in 3weeks time. Hoping for some news on a cash return; though perhaps too much to wish for!

[badtime] 05/8/2013 21:24

still hanging around sky?

[skyship] 18/5/2013 12:11

There has been no change of ownership announced, just a change of the management company.

"Tamar is mandated to provide investment management services to the Company through its ownership of Tamar Financial Services Ltd ('TFSL'). The team, led by Rob Brook has now transferred to Patrizia and will continue to manage the Company on a day to day basis."

[hoveite] 17/5/2013 17:49

Do you know if Joe Lewis still has an involvement here now that Patrizia have taken over the managers?

[skyship] 17/5/2013 16:47

"..the Fund also continues to look at a wider disposals programme of non-Nordic assets in order to target a return of capital to shareholders as soon as possible."

Wish they'd stop talking and just get on with it!

[tiltonboy] 17/5/2013 16:23

Wasnt expecting that increase NAV.

[skyship] 10/5/2013 14:08

These have stealthily and unobtrusively advanced back up to 30p Bid.

Would it be asking too much for Patrizia to make a statement of intent...