|Tamar European Industrial Fund
||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Tamar Euro (London Stock Exchange): 0 recent articles
|envirovision: It looks like they will actively be looking to add more properties poss France or Germany, hence no cash distribution. I wonder if there will be an announcement of a purchase followed by an excuse to keep the cash, reading between the lines it seems that way and clearly the fall in share price yesterday highlights a leak of the results or I'm a banana.|
|kenny: Hopefully, we will get news, with the annual results, of a return of some capital. They have run out of excuses to hang on to surplus cash; which is earning almost nothing.
The share price is discounting a further big fall in NAV and also no return of cash. There will likely be some further reduction of NAV but one hopes that both of these will not occur!
If they hang on to cash post June 2014, we get into the ridiculous situation where the company has to start paying an annual management fee of 1.35% on it. That clearly is not in shareholders interests (it would be solely in the management firm's interests) and would likely lead to a revolt by shareholders.|
|sharpshare: 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.|
|scburbs: Difficult to get excited about a few million of disposals at marginally above book as book value has been falling fast.
TEIF look good value given the lowish gearing, but progress has significantly slowed. It is high time for them to start returning cash to shareholders with my preference for the first return of cash being share buyback/tender offers (assuming the share price remains depressed).
Perhaps Patrizia will find some investors who want to acquire TEIF as Patrizia will want to retain the management mandate.|
|scburbs: The biggest asset has gone. Pretty disappointing price for a long term lease to Toyota, but very positive bearing in mind where the share price is (other than not mentioning how large the tax discount was!).
Good news on the French leasing. Definitely time for them to be thinking about a tender offer now.
"The transaction achieved a gross sale price of £15.65 million (NOK 148.35 million), prior to discounting for tax, reflecting a net initial yield of just over 8.5% and a 6.1% discount to the March 2012 valuation."
For a company in wind down phase a share buyback materially below the realisable value (accepted the realisable value can currently only be estimated) is a no brainer for the remaining shareholders as it enhances the residual realisable value per share.
Also a series of increasing tender offers can have the benefit of stepping up the share price as the weaker holders are taken out and the company's status as a buyer is known.|
|scburbs: If sold at book the disposals completed after 31 December represent another £26.2m of proceeds. This takes net LTV from 52.5% to 46.2%. Also they are hopefully maintaining an increased central cash pot (as opposed to using all cash to pay down debt) to underpin minimum returns to shareholders.
If they can shift the Toyota property at a above NAV due to the reletting then that should help get the share price moving (as would an initial return to shareholders or ideally a share buyback/tender offer). Between 30 June 2011 and 31 December 2011 (prior to new lease) the market value fell from £17.234m (7.5% yield) to £16.053m (7.5% yield), which looks primarily due to FX as the yield is constant.
"20. Post balance sheet events
In 2012, the sale of the assets at Nurmijarvi (Finland), Ostmarkveien and John G Mattesonsvei (both Oslo, Norway), which were unconditional at the year end, were completed. In addition, sale of the asset at Vaulx en Velin (France), which was unconditional at the year end, is expected to complete shortly. At the year end, these assets were included as assets held for re-sale in the Consolidated Statement of Financial Position.
In addition to the assets whose sale was unconditional at the year end, the Group has since entered into binding agreements to sell the assets at Helsinborg (Sweden) and Disenaveien (Norway) and two further units at Sint-Pieters-Leeuw (Belgium). The combined fair value of these properties was £9,232,000 as included in the investment properties balance at the year end."|
|hugepants: "...We are confident that the new fee structure will further strengthen the Company's prospects by acting as a strong incentive for the team to maximise returns to shareholders..."
What a useless bunch. Look what they've done to the share price over the last few years. I guess they've not been incentivised enough.|
|scburbs: Bizarrely it looks like sterling has marginally appreciated since 30 June 2011 (8.8NOK now vs c.8.65NOK on 30 June). It is always surprising to find a period in which sterling has increased against NOK, the next round of QE should put paid to that for the remaining disposals! After all the one thing TEIF has done well(!) is making cumulative FX gains (39p) almost equal to the share price! What would the share price be if sterling hadn't collapsed?
This makes the 2.5% look more impressive and closer to 5% in NOK (although it is not entirely clear from the wording which currency they are referring to). It also means the profit is greater than it appears as the disposal proceeds will be 2.5% higher than book and the loan repaid 2% lower than book.
|affc21: A brief summary,regarding TEIF property assets.
TEIF Country Spread by Portfolio Value, which is focused on investments in industrial real estate assets primarily across Western and Northern European jurisdictions (from Factsheet to 31 March 2010):
France £99,572,000 (33.53% of portfolio)
Norway £69,645,000 (23.45% of portfolio)
Belgium £39,776,000 (13.40% of portfolio)
Sweden £33,486,000 (11.28% of portfolio)
Germany £24,107,000 (8.12% of portfolio)
Finland £22,362,000 (7.53% of portfolio)
Netherlands £7,993,000 (2.69% of portfolio)
Total £296,941,000 (100% of portfolio)
The above values/percentages will have changed slightly since the publication of the Factsheet due to the property sales since - see below (also due to £/EUR exchange rate movements).
They have since managed to raise:
EUR1,000,000 via a property sale in Boxmeer, Holland (26 Jul 2010).
£3,452,750 (SEK 38,000,000) via a property sale in Gothenburg, Sweden (01 Jun 2010).
EUR20,700,000 via property sales in Helsinki and Tampere, Finland (20 Apr 2010).
EUR7,450,000 via property sales in Paris region, France (16 Apr 2010).
As at 31 March 2010, the Fund had debt levels representing gearing, on
total property value of 65.5%. If all cash balances within the Fund were
to be applied to reduce the drawn debt facilities it would reduce gearing
So with the above property sales, the LTV ratio upon refincing will be further reduced.
Since April 2009, the NAV has been on the increase, due to the industrial real estate assets being in locations primarily across Western and Northern Europe.
Company Performance Overview:
The Company's Net Asset Value ("NAV") at 30 September 2009,
Adjusted to add back deferred tax, was 79.2 pence per share.
This represents an increase of 5.3% over the equivalent NAV at
3 0 June 2009.
The Company's Net Asset Value ('NAV') at 31 March 2010, adjusted to
add back deferred tax, was 80.9 pence per share. This represents an
increase of 1.4% over the equivalent NAV at 31 December 2009.
Personally I am expecting a small rise (or at least a stabilisation) in the estate assets on a local basis (EURO only). But due to the £ rising by approx 7% in relation to the EURO exchange rate since the date of the last Factsheet publication (80.9p NAV adjusted), the resulting NAV will be impacted downwards (my guesstimate approx 69p NAV adjusted).
With the present share price at 32p to buy, there is some 115% room in the share price to catch-up with the NAV (if the resulting adjusted NAV comes in at 69p).
The discount to NAV would be an attractive 55%. (if the resulting adjusted NAV comes in at 69p).
Hoping they will have some news on the financing (which could be the reason for the recent drop in share price as well as some nervousness towards the Eurozone and the Euro), with which we should get a responce in kind with the share price.
Refinancing due dates are (taken from my notes, but not checked as of late, so may not be accurate now, although I am not aware of any alterations to the terms)): October 2010 (£51m). April 2011 (£58.5m (=£37m+£21.5m)). November 2011 (£89m).
Tamar European Industrial Fund Ltd will announce its half year results for the period ended 30 June 2010 on Tuesday 31 August 2010 (with an adjusted NAV to 30 June 2010).
Just my thoughts.
Please DYOR and bear in mind the variation in the exchange rate, which has an impact (increase/decrease) on the NAV.
And with an approx 5% (1.5p) annual dividend at a 31p (mid) share price.
Which could be substantially increased upon a successful refinancing, as suggested by some very knowlegdable posters on these boards.|
Tamar European share price data is direct from the London Stock Exchange