Axa Property Share Discussion Threads

[skyship] 04/4/2013 16:30

...hope you're still enjoying the ride in CIC.

[skyship] 04/4/2013 16:28

Sue - not as bad as that - 32% NAV discount; so a GRY of 15% if 55p achieved by 31/12/15. 12.7% if 52p.

Still, DSC certainly looks a far better proposition in the short-term...

[smarm] 04/4/2013 16:05

Skyship - very disappointing indeed. In fact...not worth staying in for. Discount is only 20%, annoying fees and no guidance on when or what. Shame.

Hey ho.

S

[skyship] 04/4/2013 15:52

Thanks guys - it appeared rather late on the website, but have it now.

Very disappointing - no updated information on the portfolio, a slow liquidation and extra fees for the managers.

Sold a few, but will hang on to the rest for the long haul as still a good return to 31st Dec'15.

[skyship] 04/4/2013 14:58

Circular out somewhere - but so far unable to access it!

[skyship] 28/3/2013 13:26

Sue - have replied over on the PEQ thread...

[smarm] 28/3/2013 11:56

Skyship - well done. Thanks.

Jaws/Skyship - what do you think of PEQ. Some of the recent IPO's in their portfolio are humming...??? We can discuss on PEQ thread.

S

[jaws6] 28/3/2013 09:37

skyship
Thanks

[jimcar] 28/3/2013 09:01

Thanks Sky

[skyship] 28/3/2013 08:58

Apologies - not yet ready, but it will be soon - though obviously later than promised...

Not clever really; they've had more than 3 months!

"14th Dec'12: A circular convening an Extraordinary General Meeting to seek shareholder approval and containing further details of the managed wind-down process will be circulated to shareholders by March 2013."

[smarm] 28/3/2013 08:43

Excellent.

Thanks.

S

[skyship] 28/3/2013 08:19

Ahh - so it is. Yes, I'll contact them today...

[smarm] 28/3/2013 08:06

Market closed tomorrow.

One wonders why they can't just do what they say they're going to do.

I vote Skyship calls them.

;-)

S

[skyship] 28/3/2013 07:41

Certainly down to the wire - has to be today or tomorrow to meet the target!

[jimcar] 27/3/2013 21:25

"As a result, the Board intends to publish a circular seeking Shareholder approval to this change of policy during March 2013."

Has there been an announcement on this? Would it have to be an RNS?

[skyship] 13/3/2013 15:53

As I've often posted, the potential returns here are still highly attractive:

Assuming a start from 39p and a liquidation date of 30th June 2015:

# The Gross Redemption Yield for a target 52p = 13.34%pa
# The Gross Redemption Yield for a target 55p = 16.15%pa
# The Gross Redemption Yield for a target 58p = 18.86%pa

58p may well be rather optimistic, but those lower targets look infinitely achievable and show why APT may still be considered cheap.

Roll on that circular...

[jimbox1] 13/3/2013 15:14

Skyship, that's very useful confirmation that we are benefitting from the exchange rate movements in the euro net assets.

[skyship] 13/3/2013 11:38

JIM - this is the official position re the currency swaps. Highly encouraging and suggests the NAV now could even be back up to 62p. I'll settle for 60p for my spreadsheet calculations:

=======================================================
"The cross currency swaps were implemented to hedge against adverse movements of the Euro on the ability to pay dividends, and were put in place prior to the suspension of the dividend. Under these swaps, each quarter APT pays €1120k and receives £896k (ie: at a fixed rate of 1.25). If we were unhedged, that translation would generate circa £975k at today's spot, so we are losing on this hedge each quarter.

The equity value of the portfolio (assets in Euros less Debt in Euro) is not hedged (we unwound the last of these in 2011) and is 100% exposed to the Euro. Consequently we have gained with the GBP weakness since the start of this year."
=======================================================

[jimbox1] 13/3/2013 10:01

I've now had a look in more detail at the last annual report and it seems that the company would benefit from the depreciation of the pound against the euro by £2.9m for a 5% devaluation, based on the 30/06/2012 figures. This from note 22.

I can't help observing that it would make much more sense if the functional currency for reporting and management purposes was the euro, given that most of the assets, liabilities and income are denominated in euros. The business would be a whole lot simpler if everything was reported in euros and there would be no need for all the currency swaps and complicated accounting (and audit fees) that we are faced with.

[piano man] 12/3/2013 20:13

Thanks for that Skyship. Still on the sidelines here.

[jimbox1] 12/3/2013 14:14

Skyship, thanks for your response. It is the EUR 112m currency swap with Crédit Agricole, mentioned in note 10 of the interim report that has me puzzled. Given that the company's functional currency is sterling, the euro denominated net assets ought to be a disclosed currency exposure. The fact that there is no disclosure of such exposure may mean that there is no NAV opportunity from the appreciation of the euro against the pound.

[skyship] 12/3/2013 13:27

piano - These are stores in Germany - not here in the UK - & most of the stores are food stores like Lidl etc.

[piano man] 12/3/2013 13:20

66% retail premises. Sticky market for some of those the way online sales are going?