Delek Glbl Share Discussion Threads

[kenny] 01/12/2009 14:34

tiltonboy

I would not accept 80p for my shares even though my average price is less than 80p. Assuming we get 11p per annum dividends (it could be less) that would be a 13.75% yield: forever(!), with the opportunity of dividends increasing. I cannot achieve that elsewhere, at least not with an element of consistency. This is partly influenced by the fact I have rather a lot of shares both personally and in my SIPP.

Regards
Kenny

[tiltonboy] 01/12/2009 14:24

Kenny,

I can certainly cope with 2.25p as a quarterly dividend. Especially nice yield on the lot I picked up at 41p recently!!!

Would still take 80p for my stock though.

tiltonboy

[kenny] 01/12/2009 14:21

Looks like they are moving to paying dividends on a quarterly basis.

If DGRE were to pay two at the rate of 3.25p and two at the rate of 2.25p that would be 11p per annum. I would certainly be happy with that while we await either a) the recovery of commercial property values or, b) DRE going bust or, c) the sale of some property by DGRE or d) a combination of the above.

Anyone still think 50p was a fair offer for our shares?

[flying pig] 01/12/2009 13:06

All contributions received with thanks.

Only an interim dividend, 2.25p on say 60p = 3.75% - better than deposit money in the bank, and there will be more larger dividends, I believe!

[horse19] 01/12/2009 11:11

RNS Number : 3776D
Delek Global Real Estate PLC
01 December 2009






Not for release, publication or distribution in whole or in part in, into or from any jurisdiction (including the United States) where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.




FOR IMMEDIATE RELEASE




1st December 2009







Delek Global Real Estate plc

("DGRE" or the "Company")




Proposed Interim Dividend







The board of DGRE announces that it resolved in its meeting held on 30th November 2009 to declare an interim dividend of 2.25 pence per DGRE share. The dividend is payable to shareholders on the register at 1st December 2009, and is payable on 15th December 2009.










For more information, please contact:

Delek Global Real Estate plc

Yossi Friedman, CFO and Director

Tel: [phone]

Email: [e-mail]





This information is provided by RNS
The company news service from the London Stock Exchange

END

[tiltonboy] 01/12/2009 11:09

Interim dividend of 2.25p to be paid on 15th December. Was hoping for a bit more than that.

[kenny] 17/11/2009 11:16

Looks like the thoughts I posted yesterday were impeccable timing – today DRE shares are currently up about 12% on the highest volume in over 12 months!! Presumably something brewing, so I await developments from that company with great interest.

[kenny] 16/11/2009 16:44

DRE has until May 2010 to come up with some money in order to repay the bonds redeeming then and it is likely to achieve this. However, it may not be able to meet later redemptions although another NIS110 due in 2010 may be met.

I think it is the case that they would prefer to limp on rather than bite the bullet, in the hope that something will turn up. They left it until very recently to decide they have no choice but to sell all directly owned properties. Another guess I would make is that Roadchef has continued to bleed cash and they had been hoping its trading would turn positive.

Also, liquidation of DRE is bad publicilty for other Delek companies so it is much more likely that Yitzhak Tshuva who now owns more than 50% of DRE directly would, if matters get really serious, stump up cash for another rights issue.

I also suspect that parts of the DGRE portfolio are not easily sold because DGRE does not have a 100% interest in some of the material property assets. So if it's partner(s) do not wish to sell their interest in the property or buy out DGRE's interest, they may be forced to keep the property. I think they will try and sell what is easily sold in DGRE and pay it up, but I do not know if that would make a material difference to DRE's finances.

[tiltonboy] 16/11/2009 16:15

What I cannot understand is if DRE is so stretched why doesn't it liquidate the DGRE portfolio at close to NAV, and the repay the bondholders, rather than see a forced sale of assets at a later date.

[kenny] 16/11/2009 15:28

I think you are spot on flying pig but I think DRE is looking a bit sick - since it announced it was selling all its own property leaving it with just 85% of DGRE and the Danker company it's shares have moved down almost every day. Even with property values recovering, the market seems to be saying it does not think DRE has enough property to satisfy redemption of all the bonds it has issued.

Therefore, even after it sold all its own properties it could go bust owning 85% of DGRE and the Danker company. A bit messy then, because either the bondholders slowly liquidate DGRE or they try to sell it intact to a new owner.

Either way we should do well - continuing large dividends or large returns of capital - but it is all looking a bit uncertain at present.

[grollfam] 31/10/2009 06:58

ROADCHEF BONDS DOWNGRADED AGAIN !!!!!!!




PRESS RELEASE:Fitch Publishes Credit Analysis On RoadChef Fin
Fitch Ratings-London-29 October 2009: Fitch Ratings has today published a credit analysis report on RoadChef Finance Ltd's (RoadChef) class A2 and B notes.
Fitch Ratings downgraded on 15 October 2009 RoadChef Finance Ltd's GBP133m class A2 fixed-rate notes due 2023 to 'B+' from 'BB-' and maintained them on Rating Watch Negative (RWN). The agency also placed its GBP42m class B notes due 2026 - rated 'B-' - on RWN. The rating actions resulted primarily from Fitch's concerns as to the company's significant deterioration in performance, which could potentially put at risk the service of the debt without further support from the sponsor, Delek, particularly if the UK economy does not recover shortly and if performance thereby continues to decline.
The published report outlines the details of the agency's credit analysis underpinning October's rating action. Fitch used its UK whole business securitisation (WBS) criteria to review the key rating drivers and risks affecting recent and future cash-flow performance, and their impact on transaction's credit metrics.
For more details on the transaction structure, please consult RoadChef Finance Ltd - New Issue report, which was published at closing 22 December 1998.
Contacts: Julian Dupont, London, Tel: [phone]; Guillaume Langellier, [phone].
Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email: [e-mail].
Additional information is available at www.fitchratings.com

[kenny] 29/10/2009 23:11

Very dangerous to buy Delek Real Estate's bonds - may not be enough net assets backing the bonds to allow repayment at par, after allowing for property losses on assets such as Roadchef.

For example, the value of their shares in Danker and thier 85% interest in DGRE may not cover the net bonds issued, even after DRE sell all other assets.

[flying pig] 29/10/2009 21:15

Delek Real Estate's bonds are trading at junk levels of 18% to 33%.

Well how hard is it to buy some bonds yielding big % rates to get double whammy?

[tiltonboy] 29/10/2009 19:22

Let's hope they draw up as much in dividend as they can.

[flying pig] 22/10/2009 23:45

Kenny

I agree with you. You are not alone in being a potential thorn. Better (and easier) to be honest at 15% and do a sensible deal at some point! In the meantime pay dividends and get the cash upstreamed.

In addition there is some law on our side to protect minorities.

The Pig

[kenny] 22/10/2009 17:59

They have control of DGRE anyway with their 85% so I do not see it as an issue. Whoever they appoint, they cannot disenfranchise DGRE shareholders rights and when quoted, most of the directors were not independent.

Bear in mind Mr Yitzhak Tshuva has a reputation and other shareholders in lots of other quoted companies e.g. Delek Group and numerous others, to keep sweet. So if they tried anything strange I would try to publicise their actions - as I did last time. I think they learnt from that experience and it was one of the reasons that the previous MD was booted out. It also helps we now have a 5% shareholder who is an Israeli fund who has unit holders so, hopefully, they too would protect their rights as shareholders.

In summary, we are not sheep to be slaughtered!! In any event we are only 15% and Delek Real Estate has 85% so it does not make good business sense to upset such a small minority/value when you have a much bigger empire to steer. The oil find also means various Delek companies need goodwill in order to raise hunderds of millions for development costs to bring the oil onshore. However, it does appear to be a fact that the assets in DGRE are a lot less geared than those in DRE. On the other hand, the desperate times have abated so hopefully they will not try another lowball offer for minorities shares. A recent report of DRE planning to issue new bonds is also a sign that they are going to try that route.

Hope the above sounds logical, it does to me!!

[grollfam] 22/10/2009 16:52

NOT GOOD !!!!! Another yes man for Yitzhak Tshuva !!!!!!





Elad exec named DGRE CEO
At Elad Group Asia, Eyal Rabinovitz oversaw the company's participation in projects worth $3 billion.
Ran Rimon 22 Oct 09 12:54


Yitzhak Tshuva has appointed Elad Properties VP and CIO Eyal Rabinovitz as CEO of Delek Global Real Estate Ltd., a subsidiary of Delek Real Estate Ltd. (TASE: DLKR).
Delek Global Real Estate owns properties in the UK, Germany, Scandinavia, Switzerland, and Canada. Tshuva delisted the company from London's Alternative Investment Market in June.

At Elad, Rabinovitz, 34, established the company's Asian operations, including subsidiary Elad Group Singapore pte. Ltd., and oversaw the company's participation in projects worth $3 billion. Previous positions included assistant VP at the structured debt department at Deutsche Bank's New York branch, auditor at PricewaterhouseCooper in New York, and auditor at Ernst and Young Israel - Kost, Forer, Gabbay & Kaiserer.

Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

[paperclip3] 22/10/2009 11:17

Yes Grollfam, I've no doubt you're correct. We could be talking of an annual dividend of 13p. Not bad!

[grollfam] 21/10/2009 14:05

Flying Pig

Delek Group (TASE: DLEKG), unbundled all Delek Real Estate out of Delek, so any funds raised will not be used to bail out Delek Real Estate.

In turn, Delek Real Estate owns 85% of DGRE, so they(Delek Real Estate)will try & pay out as much dividends as the free cash flow of DGRE will allow

[kenny] 15/10/2009 19:03

Thanks for the information on Roadchef - which is entirely owned by DRE and not DGRE. Fitch's comments demonstrate DRE's problems and only time will tell whether the Roadchef purchase was one purchare too many by DRE.

[grollfam] 15/10/2009 12:12

Fitch Downgrades RoadChef's Class A2 Notes; Maintains RWN; Class B Notes on RWN



The following is a press release from Fitch Ratings:

Fitch Ratings-London-15 October 2009: Fitch Ratings has today downgraded RoadChef Finance Ltd's GBP133.0m class A2 fixed-rate notes due 2023 to 'B+' from 'BB-' and maintained them on Rating Watch Negative (RWN). The agency has also placed its GBP42.0m class B notes due 2026 - rated 'B-' - on RWN. RoadChef Finance Ltd is a securitisation of cash flow from UK motorway services areas ( MSAs) operated by RoadChef.

Fitch used its UK whole business securitisation criteria to review the transaction structure, financial data and cash flow projections as well as to carry out stress-testing for each of the transaction's rated instruments.

Since Fitch's review in December 2008, RoadChef's financial performance has deteriorated rather significantly, due the economic downturn. For the 52 weeks ended in 4 July 2009, EBITDA (excluding exceptional items) dropped 20.8% to GBP16.9m from GBP21.3m and its margin to 6.6% from 7.4%. On a year-to-date basis, EBITDA (excluding exceptional items) fell less deeply but still by 10.4% to GBP8.2m from GBP9.2m, mainly due to a dip in sales both in fuel and non-fuel, although this was partly offset by strong savings in site overheads.

Roadchef's management appeared less pessimistic going forward, as they expect to benefit from both the roll-out of WH Smiths completed in June 2009 and the tendency for Britons to spend their summer holiday in the UK. Also, in May 2009, management has signed with BP 13 new 23-year rental agreements on 59% of the securitized forecourts (which transfer all operational, capital and environmental liabilities to BP). Management believes that this move would allow them to focus more on RoadChef's core retail and catering businesses while bearing less operational and working capital issues.

However, considering the strong volatility of RoadChef's sales/EBITDA and working capital swings, Fitch has increased concerns in its capacity to service its debt in the short- to medium-term. It has GBP18.4m annual debt service without taking into account overdraft/money market facilities costs. The agency believes that without any sales improvements (particularly in catering and retail) or further financial support from the sponsor, Delek, RoadChef could struggle to service its class A2 notes (GBP15.0m) on 31 October 2010 without drawing on the liquidity facility. For the more immediate notes payment on 31 October 2009, management has confirmed to Fitch that 70% of the required debt service has already been paid into a segregated account as envisaged in the transaction documents.

With regard to financial covenant compliance (EBITDA to debt service cover above 1.25x), RoadChef still benefits from GBP5.0m (sale proceeds of a MSA outside the securitized group in Q408) for its Q309 EBITDA calculation. However, Fitch believes there is a risk that the financial covenant may be breached during the remainder of 2009 without further equity injection.

It should be noted that the transaction benefits from many credit enhancements such as the cash trap mechanism, the deferability on interests and principal of the back-ended class B notes, and the presence of overdraft/money market facilities at the borrower level. However, following an in-depth reassessment of this transaction, and akin to Welcome Break's prior securitisation, Fitch notes that due to a loophole in the documents, the short-term liquidity facility could be cancelled in an administrative receivership scenario at issuer level, which the agency views as a structural weakness compared with recent whole business securitisation structures.

Fitch expects to resolve the RWN following the release of the results of the critical summer period and after confirmation that the Barclays GBP11.2m overdraft/money market facilities will be renewed (expiring on 3 December 2009). Although management is confident about Delek's commitment (having already invested GBP6.5m of new cash since acquisition in March 2007), Fitch will continue to look for signs of support, especially for future financial covenant compliance or, more crucially, for notes payments.

RoadChef is the third largest UK MSA operator with 19% market share (with over 60 million visitors per annum).

Fitch will soon publish a detailed performance report explaining the analysis underpinning the agency's rating actions.

The applicable criteria 'Rating Criteria for UK Whole Business Securitisations' dated 9 February, 2009 are available on www.fitchratings.com.

Contacts: Julian Dupont, London, Tel: [phone]; Guillaume Langellier, [phone], Ockert Doyer [phone].

Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email: [e-mail].

Additional information is available at www.fitchratings.com