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Terra Catalyst Share Discussion Threads
Showing 101 to 124 of 125 messages
|i assume nav growth is purely euro strength?|
|8(th) April 2016. TERRA CATALYST FUND. Net Asset Value of the Company
The Directors of Terra Catalyst Fund ("the Company") wish to announce that the final Net Asset Value for the Company as of 31(st) March 2016 was 203.33 pence per share.|
|Yep...the assets are in beautiful Italy and subject to fortune like all things.|
|Praipus - do you own this ?
I do - its one where I can sleep safe in the knowledge that one day in the next four years it will probably double...|
|RNS Number : 1682R
Terra Catalyst Fund
04 March 2016
4(th) March 2016
TERRA CATALYST FUND
Net Asset Value of the Company
The Directors of Terra Catalyst Fund ("the Company") wish to announce that the final Net Asset Value for the Company as of 29(th) February 2016 was 200.39 pence per share.
|there you go -terms agreed - could be a good performer now for a month or so..|
|rjm - as you must surely be aware, all valuations are based upon yield considerations; hence in an era of yield compression, values rise.
Very simplistically, if you buy an office block in Leicester providing £500k rent and you value with an 8% yield, then the asset will be valued at £6.25m.
Over the course of the next year yields on similar assets drop to 7%, so the asset will be revalued to £7.14m. All other things being equal of course...
A simple model surely can't exist as there are so many variables, starting with yield, covenant and lease length.|
|Skyship thanks for the reply. I am serious. I don't entirely see why the Nav of a building need necessarily change when let. Surely for almost all building s if you drop the rent enough they will be let. That being basis on which they should be valued...
Also over at IERE unlet buildings have been sold at 50% discounts to Nav why would this be the case if the Nav was remotely accurate...
I really want to understand this better think it is time to read some surveying books...
I know prop cos provide detail but if I can't model Nav effect no real use to me...
I am often concerned NAV doesnt reflect likely open market sale value...|
|rymahan was yr question to edwardt genuine?
Of course a lease extension can give rise to an asset revaluation.
# A building with no tenant - a void - could be valued at x
# That building with a small company tenant could be valued at x +15%
# That building with a blue chip covenant tenant could be valued at x +25%
# All valuations take regard to lease length - a short lease could lead to a void!
This is why propco Annual Reports always provide extensive detail on leases and covenants...
I am not aware of an available detailed guide to Surveyors valuation techniques.|
|Edwardt why would a lease extension move Nav surely value of assets is the same...
Do you have any guide as to the theory of how NAV is calculated?|
|Spazio is c60% geared, so the current 50% discount on TCF is equivalent to a mark of 80% of "fair value" of the commercial assets.
Fair value is pretty nebulous as Italian real estate is in the doldrums still. Getting 80% of it in an asset sale is not a racing cert. cleaning up the portfolio and getting 100% of it is not possible or it would have been done and dusted by Kingsnorth.
Nick Greenwood has just sold half his lumpy position at 95p.
It (TCF) is pretty fairly valued I think
A different viewpoint, anyway.|
|surely the idea here is is to extend leases - get circa 20% nav uplift (conservatively) and then sell. on current share price , we could make 1.5 times our money? easy!|
|Sales + Low liquidity. If you read report TCF wont be able to pay out for several years (I estimate 4) unless sold. However after 4 years I recon this can have a 10% yield.|
|Curious price weakness. results and investment environment look ok IMHO
|Praipus - they arent redeeming £2 a share as they can't - its is locked up in Italian telephone exchanges. They are looking to realize - but it will take a while. They are simply returning cash.|
|In your example:
NAV falls by £129.71 in absolute terms to £1880.29
Shares out fall to 881
NAV/share post redemption = 213.4p, a rise of 6.2% or 12.4p, like you said.|
|Correction I meant: will we see the theoretical NAV rise 12.42p after redemption?|
Market value of the (exit cash + remaining shares) is what is preserved. NAV is irrelevant.
Initial MV = 1000 shares * 109p = £1090
Exit cash = 129.71
Remaining shares = 881 @ MV of x pence (x is post redemption price)
TOTAL should be £1090 else arbitrage
so x = 109p|
|NAV £2.01 x 1,000 shares = £2,010
Redeem 119 at £1.09 = Cash £129.71
Remaining 881 shares at £2.01 = £1,770.81 + Cash £129.71 = £1,900.521
Difference £109.48 presumably this accrues to the remaining NAV?
So will we see the share price rise by 12.42p after redemption?|
|They are just redeeming available cash - £2.3m - which is about 13.06 pence per share held. Doesn't matter how many shares they redeem.
Choosing 11.93% makes the redemption price per share around the mid market level, so that there isn't a share price hit. If they redeemed something like 6.5% of the shares at 201p/share (ie NAV), there would be an immediate adjustment to the ex-redemption share price - like a rights issue adjustment - downwards, to provide the same total of the [remaining shares mkt value + cash received] as prior to the redemption.
That said, the signalling nature of a NAV redemption rather than a MktPx redemption would be stronger IMO.|
|hi rjmahan, a question
If the NAV is really £2 why are they only redeeming £1 per share?|
|Glad I held mine - always think when they redeem - should buy more but never do - spread is too big now...|
|The valuation of the underlying properties hasn't really changed. It's just how they have accounted for the investment. A big discount is warranted as they can't sell the Italian properties and they don't generate much cash. At least they sorted the tax issue. Must be quite a de-listing risk though in my view, so be careful if you wish to get out anytime soon. I still have a few Value Catalyst and that's been a slow and declining value scenario.|
|See what you mean they went up but didn't have the discount:)|