Regional Reit Share Discussion Threads

[arbus5000] 23/4/2024 09:29

i think that shareholder acquired the RGL when RGL bought a bunch of properties in 2021 i think?

[cc2014] 23/4/2024 08:43

Majik had 9.13% as 27th Mar 2023 as shown in the annual accounts.

It seems RGL have now lost the support of their largest shareholder. They've dropped below the 5% reporting threshold and it seems reasonable they will sell the lot. Not a good look.

I'm struggling to understand why the share price is so strong but hey that's the market for you.

[tiltonboy] 22/4/2024 20:03

Majik had 9% three years ago

[dandigirl] 22/4/2024 18:47

Majik Property Holdings Limited

[feuille] 22/4/2024 18:27

Martley at 3% , not Majik.

[grahamg8] 22/4/2024 18:03

Majik previously admitted to 3% now they are up to 4.71%. I wonder whether they have enough fire power to buy RGL out entirely.

[davep4] 19/4/2024 13:50

What are the rules for a REIT?

To qualify as a REIT, a company must have the bulk of its assets and income connected to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

[hindsight] 16/4/2024 15:19

Maybe Martley intend to take on the £50m debt

Martley also manages the TREC II debt fund and has a loan-servicing business called Iken as well as separate account mandates. Those include Gap Financing Series I, which it said recently provided a three-year, £32.25M mezzanine loan to refinance a portfolio of five UK retail warehouse assets owned by Tristan Capital Partners and is “continuously reviewing further opportunities” to provide capital to owners facing loan-to-value issues or needing to refinance.

[cc2014] 16/4/2024 13:20

The Mailbox had exactly the same problem as RGL. Overleveraged and paying out dividends it shouldn't.

One wonders if some of the people involved simply do not understand how a balance sheet works.

[spectoacc] 16/4/2024 12:49

What a fiasco The Mailbox was, but then M7/Martley know there's plenty of retail mugs out there. And RGL's assets are far from all being bad, just they're weighed down with debt and Inglis decided to pay cashflows out as huge divis, not to secure RGL against future debt expiries.

But good point re £75m, not forgetting the mooted rescue rights plan also involved very large disposals continuing over several years.

[cc2014] 16/4/2024 11:30

It's pretty clear from the trade flow and L2 that the only significant buyer of RGL shares is Martley

Which is bold and brave but does not exclude stupidity.

They have 3% and want to be an activist. I'm guessing they've bought most of their shares below 20p but for all we know they started buying at 80p, have bought all the way down and have only just tipped over 3%

They are right in so far as the current shareholders won't want to stump up for a £75m rights issue, but £75m in itself suggests that the Board/Inglis are on a different planet that you or me.

Martley believe they have a plan to sort out the retail bond. One wonders if it's something to do with the new retail stock exchange for REITs, which may or may not be the same plan as IPSX which has failed and had to close down which was put together before Martley was part of or spun out of or sold out of M7. M7's attempts to offload the Mailbox onto PI's through IPSX failed completely. The new venture with Aquis may or may not work better.

[spectoacc] 16/4/2024 08:38

Ha yes, or more to the point - great, they've let 30,000 sq ft. But have they lost any elsewhere? They RNS the one, but not the other, as shown by lots of promising RNS's, and an overall vacancy rate that stays high.

If they avoid a rescue rights with the retail bond, what happens with the next, larger, debt rollover? Or will the stakebuilder be out again by then.

[nickrl] 16/4/2024 08:29

Distraction RNS whats happening with the bond

[williamcooper104] 15/4/2024 18:40

Reason why I didn't see a rights issue coming is that if all other shareholders are clear that they don't want to put more money in and know the others feel the same then likely to happen Hasn't been (AFAIK) any distressed reit rights issues this cycle (mainly because RGL ran their leverage a little too high)

[williamcooper104] 15/4/2024 18:38

An external manager will always prefer raising equity (which increases management fees) to selling assets (which decreases fees) That said Englis owns a fair chunk; but if he's got the cash to participate in the rights issue then no dilution, and extra fees

[grahamg8] 15/4/2024 17:22

I think we are pretty much in agreement with Martley that new equity is bad for current shareholders and should be avoided if at all possible, unless the alternatives are horrendously expensive. Such as property sales at a massive discount or additional debt comes at too high a price. The investment manager has backed the company into a corner, and the Directors allowed then to do it.

[hpcg] 15/4/2024 09:49

CC2014 - the identity of the share buyer was my main takeaway. Any new debt will cost considerably more than the property yield, and we have no idea what is written into agreements for the other borrowings. It is naive to think the concept never occurred to the board. The clock is ticking too.

[cc2014] 15/4/2024 09:22

Martley has hit out at the prospective move and says that it has developed a strategy to refinance the bond, “which would render the issuance of new shares… unnecessary in the current market”. It now “intends to engage with the current investment manager about the future direction of the company and its long-term strategy”.

Well, if the modus operandi of Martley is the same as M7, I cannot see what will really be different than rolling the retail bond at 12-15%. Sure, the instrument might be different but it will still come at a ugly cost to RGL and I'm not sure how it keeps the wolf from the door in relation to less subordinated lenders to RGL.


Still, it's good to know who has been scooping the shares up. I doubt Inglis will take any more notice of Martley with 3% than his does any other shareholder.

[feuille] 15/4/2024 03:20

The kinds of places where working from an office is more likely than working from home.

[williamcooper104] 14/4/2024 23:55

They've got some but that's not typical - it's mostly northern, midlands and Scottish

[feuille] 14/4/2024 23:13

They have offices in Bristol, as I keep telling you.
So stop lying.

[williamcooper104] 14/4/2024 20:10

My guess is that this is what would happen as institutional shareholders would prefer a wind up than having to put money in or get diluted

[williamcooper104] 14/4/2024 19:50

Also I think they'd need to borrow more than the retail bond to give a junior lender comfort that the secured loans would have greater covenant headroom to allow cash out to pay some interest on the junior loan - some of the loan would PIK So could end up being very expensive

[williamcooper104] 14/4/2024 19:48

Bristol, Oxford and Cambridge are all great office markets - alas that's not where RGL bought - they chased yields in secondary locations with poorer fundamentalsThat said it's likely they could refinance the retail bond with a junior loan, it wouldn't be cheap and it would mean cutting the divi in full, but would give time to de-lever and would avoid a punitive equity issuance