Capital & Regional Share Discussion Threads

[sphere25] 19/1/2022 11:38

Some whoppers going through here:

2m @ 63p
2.0055m @ 63.125p

It looks like it needs to break 64p to breakout.

Might be worth keeping an eye on.

All imo
DYOR

[nickrl] 17/1/2022 18:45

Trading update today reasonably positive and at least reinforces that even ordinary retail is close to the bottom or stabilising. Perhaps valuers will turn there irk onto offices now which would be good as they got rid of an office to help LTV a bit. Also optimistic that Walthamstow development will crystallise shortly and lower LTV further. Finals due 8th March.

[swindon41] 16/10/2021 05:10

LH in denial....downward spiral for Mall-centred retail unless they can reinvent themselves. Lidl taken over M&S in Luton Mall & Debenhams cheep & cheerful sub units. Has a place but not in cash generative top quality covenant imho

[nickrl] 15/10/2021 19:49

Hefty dilution but Growthpoint are committed so will get it away.

Lucky RBS was prepared to write off 19% of the 100m loan to get rid of it but not sure its out of intensive care yet and whilst they say there's a possibility of small dividend in a years time.

Lets see.

[rambutan2] 14/10/2021 21:27

It lives!

Mall Debt Restructure and Reduction, Launch of Open Offer, Posting of Prospectus

as well as Notice of General Meeting

Capital & Regional plc (LSE: CAL) ("Capital & Regional", the "Company", or the "Group"), the UK convenience and community focused shopping centre REIT, is pleased to announce that it has reached an agreement with its lenders to restructure and reduce the debt secured over its four Mall Assets (the "Mall Facility") (the "Mall Debt Restructuring"), including the launch of a fully underwritten open offer to raise GBP30.0 million (the "Open Offer").

Lawrence Hutchings, Chief Executive Officer, comments: "We recently announced a set of results which clearly demonstrate the relevance of our Community Centres Strategy, the underlying strength of our portfolio and the skills and commitment of our team. Against the backdrop of a positive reopening of the economy following the disruption caused by the pandemic and increased confidence in our segment of the retail and services market we have been focusing our resources on generating the highest returns from our core Mall investment assets while working closely with our lenders towards both restructuring and reducing the Group's debt.

"These proposed transactions, which will recapitalise the balance sheet, allow us to achieve just that and represent a significant and positive step forward for the Group. They will allow us to once again focus fully on continuing our repositioning and merchandising, while looking at how we can best leverage the expertise in our platform and, in due course, the reintroduction of cash dividends."

"I would also like to take this opportunity to thank all of our stakeholders including our lenders, major shareholders and Growthpoint, as well as our teams, retailer customers and the local communities for their continued support throughout the challenges that the pandemic has presented."

Key Highlights

-- The Mall Facility currently comprises a GBP265 million debt facility with RBS and TIAA secured over the Four Mall Assets, being the Mall Blackburn, the Mall Maidstone, the Mall Wood Green and the Mall Walthamstow. TIAA currently has a balance outstanding of GBP165 million and RBS has a balance outstanding of GBP100 million.

-- Under the terms of the Mall Debt Restructuring, Capital & Regional Holdings Limited (the "Purchaser") has agreed to acquire the GBP100 million of debt outstanding with RBS (the "RBS Debt") for a principal amount of GBP81 million, representing a discount of GBP19 million or 19 per cent.

[1nf3rn0] 15/3/2021 10:25

Shares of Capital & Regional are worth holding onto, the Sunday Times's Sabah Meddings said in her 'Inside the City' column.The tipster pointed out how the shopping centre operator was outperforming rivals on several key metrics.Furthermore, its net asset value was 75% higher than its current share price, a possible indication of an "opportunity" for investors, Meddings also said.Year-to-date, CapReg's rent-collection was running at 60% and a spate of deals may boost that figure to 70%, versus 41% at Hammerson.In parallel, Hammerson's net asset value had plummeted 85% to 85.0p per share.CapReg's portfolio value meanwhile had fallen by 27.5% or £200m, versus a 41% drop at another of it rivals, Intu.Helping CapReg, many of its community-based centres, which are anchored around a grocery tenant, "put it in a strong position".Indeed, the company was busy refurbishing its food halls to appeal to Deliveroo.Nevertheless, Company Voluntary Arrangements were likely to continue, Meddings cautioned, and as CapReg's boss Lawrence Hutchings had argued in the past, there is 30% more retail in the UK than is needed.Over the preceding year, 17 of CapReg's tenants had gone insolvent through CVAs, twice the 2019 figure."Hold", said Meddings.

[nickrl] 10/3/2021 13:18

Suspect some of that cash will get trapped in the SPVs to deal with covenant breaches and they at least attack their cost base. Also had reasonable number of lease events but didn't give much away.

[spectoacc] 10/3/2021 12:46

Yes should have said "..Take it out in a D4E..".

[2wild] 10/3/2021 12:37

They still have £80 million in cash and are making money, excluding non-cash property revaluations. No need for a rights issue.

[spectoacc] 10/3/2021 07:02

CAL's a strange beast, worth possibly nothing but with a supportive major shareholder. If they think there's value, suspect they'll take it out in a rescue rights eventually. In meantime, with a small free-float it can go anywhere, & not one to be caught short on.

[nickrl] 09/3/2021 21:35

Taken a look at CALs result but not in detail

NRI down 30.8%
NAV down 58% (got to be the worst of them all)
LTV 46% > 65% (ouch but have a few years to refinance if they can)

Have 3 DEBs which will cost them 2.1m in rates plus lost rent but say 2 units have offers (interesting but guess almost £0/sqft avoids the rates)

Several of the lending vehicles are in breach of covenants but so far lenders are waiving.

Surprised share price moved upwards.

[nickrl] 25/1/2021 19:30

CAL have three Debenhams that are down the swanny although rents have been bashed down by the CVA already so maybe not so much to lose but there stuffed with not having service charge income as well as empty rates to pay.

Not going to break them but there Arcadia outlets also unlikely to be reopened so no wonder share price is down

[knowing] 23/12/2020 15:58

Feels like Christmas

[1nf3rn0] 23/12/2020 15:38

British Land raised 400M today. Others that I hold have also made disposals around or above NAV revently which may be used to acquire discounted assets.

[knowing] 23/12/2020 14:36

Not that I have seen but also not complaining

[deadly] 23/12/2020 14:19

Jump today 26%? Bid?

[nickrl] 11/11/2020 17:44

This ones a smaller version of INTU imv and don't know who advised Growpoint but I would sue them although without there investment im sure they would have needed a capital raise. There on the rack over rents and not covering there admin & finance costs currently but are quite exposed to the can pay that won't pay brigade so this one could be beneficiary if the moratorium is lifted in December.

Several assets have breached there covenants with lenders but have short term waivers so i guess it now depends on whether there is some stability in asset values now.

Divi was suspended but as a REIT they acknowledge that some further distribution is required but are asking HMRC to approve a 6mth deferral. They estimate upto 7.4m would have to be distributed or 7p a share.

Growpoint could have bought the lot for less than 50m a few weeks ago but clearly realise when they opened the tin it was as Specto described!

[1nf3rn0] 11/11/2020 10:20

It really is! I've taken advantage of weak pricing over the last 6 months to add some quality shares and funds to my portfolio. I wonder if now is the time to add some garbage like this... :)

[spectoacc] 11/11/2020 09:28

UANC and CAL are like comparing caviar with dog sh*t ;)

If I were Growthpoint I may want to take out the rest just to hide my embarrassment.

[1nf3rn0] 11/11/2020 09:12

June NAV 229p. If we assume it's now around 2 quid, would an offer at half that amount be accepted? (still almost double current share price). Or would a bid need to be much closer to NAV to be successful?Urban & Civic accepted an offer at NAV last week (which was still too low in my view) although CAL is a much higher risk proposition.

[nickrl] 15/10/2020 11:28

Specto report worse than others but share price have spiked up on unusual volume - if only EPIC could respond so positively!

[spectoacc] 15/10/2020 07:43

You thought? I didn't :)

51% rent collection in the post-lockdown period, before re-entering restrictions.

"September footfall outperforming the national index by 11%" a favourite.

"This means we have collected approximately 56% of all rents that have fallen due from the 25 March 2020 to the date of this announcement, including rents payable on both a quarterly and monthly basis. "

Will that get better or worse from here? They've got cash, but is it covering interest repayments & costs? Interims was £67m unrestricted cash as at end-June, at end-Sept is £60m.

[deadly] 15/10/2020 07:41

Good update today.

[tiltonboy] 24/9/2020 13:21

It obviously took somebody a long time to realise they put an order at best on the SETS board.

[spectoacc] 24/9/2020 13:14

First UT 5k shares 52.2p at 8.50am. Next also 5k shares, 59.6p at 9.07. Then a large 39.1k shares UT'd at 68p at 9.13. Were some keen buyers (& a few more prescient sellers) in the early 70's around 9.14-9.16am, & a bid bot appeared 72.2p. All a bit odd considering where it now is.