Ediston Property Investm... Share Discussion Threads

[spectoacc] 29/10/2020 07:25

Pleased with that - 86p NAV, divi 139% covered (& will rise in time), rent collection gone well and continues to, new lettings, Haddington income kicks in next year.

Valuation drop relatively small, magnified by gearing & capital expenditure, but - NAV 86p, share price 51p.

EPIC come through the first lockdown, will get through any subsequent ones.

Talking book, but too cheap down here IMO.

Edit - re CVA's:


"Company Voluntary Arrangements (CVAs)

The Company was affected by two CVAs during the period. First, fashion retailer New Look completed its second CVA in September. The Company has two units let to this tenant, at Widnes and Prestatyn. In both locations the tenant will continue to trade, but with the rents changed to a turnover only basis. This means the rental income received by the Company will be linked to the performance of the individual stores. The Company voted against the CVA.

The expected loss in rent from the CVA equates to 0.96% of the Company's contracted rent roll. The tenant did not pay its full rent in the March or June quarters and it was assumed that it would not pay the full rent in the September quarter either, therefore the rent collection projections are not affected by this event.

Under the CVA there are mutual break options which give the Company an opportunity to terminate the leases at regular intervals over the next three years. The intention is to do so when new tenants for the space can be identified. The Investment Manager is exploring options for each location and will report on these in due course.

The second CVA affecting the Company was completed by Pizza Hut. The Company's exposure to this tenant is at Clwyd Retail Park in Rhyl. The unit was 'Category 1' and will be retained by Pizza Hut with the rent maintained at the pre-CVA level (and not linked to turnover). The only change is a move from quarterly to monthly rent payment terms."

[skyship] 26/10/2020 13:13

Quite a few trades (33 as I type) and a bit of volume today - boosted by that 300k purchase at 50p.

[nickrl] 25/10/2020 23:19

2wild what constitutes adjusted earnings in respect of the 90% payout?

[2wild] 25/10/2020 20:04

FWIW I think they will increse monthly payouts to 0.4p at some point soon. Although REITs have upto 12 months from their year end to to distribute 90% of adjusted earnings and with monthly payouts they are so far ahead of the curve they can under pay for some time. Don't see any point in a special div. They will wont to be confident of maintaining any increase over the medium term.

[skyship] 23/10/2020 09:12

Nick - and that fall may in part be because their Sears Retail Park, Solihull is mainly closed for refurb.

So, that -1.1% is encouraging.

[nickrl] 23/10/2020 08:59

BCPT reasonably sized retail pk portfolio only down 1.1% on there Q3 NAV report RNS from today.

[skyship] 22/10/2020 09:56

Beat me to it..... The BREI R/W allocation is 16%. We of course are at 72%, but the 24% office might pare back our decrease to perhaps 2.5% - though I would expect a lower figure.

That said a 2.5% decrease to 88p (90.24%) would only reduce the NAV discount to 43.3% versus the current 44.7% - so really not too much of a concern.

[nickrl] 22/10/2020 09:15

BREI has there retail parks down 2.9% on the qtrly NAV update today and the rest of there retail portfolio at 6%. Hopefully EPIC won't be any worse come there NAV update.

[flagon] 20/10/2020 11:46

Added a few < 50p this morning.

[hugepants] 16/10/2020 14:30

Great yield but Id hope to see some evidence the fall in NAV is bottoming out in this months update.

[skyship] 16/10/2020 13:42

The last 12month period provided dividends of 4.86p - down 15.5% on the 5.75p of the previous 12month period.

I hope that the Update might provide some clarity on the forward dividend position, especially in light of the excessively high cover which no longer conforms to the REIT requirement of 90% distribution.

My estimate is that they should be paying c4.5p - perhaps 12x0.33p + a final special payment of 0.5p.

That 4.5p would place EPIC on a prospective yield of 8.9%.

[skyship] 16/10/2020 09:17

.... and I look forward to the NAV & Trading Update before the end of the month.



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[nickrl] 13/10/2020 15:43

To elaborate on Skys link the inv mgr says

"We have seen some progress in rent collections since lockdown ended and restrictions were eased.

"We have seen some solid rent collection numbers across the portfolio, with a positive increase in each quarter. A number of tenants have moved back to quarterly payments, and some of the tenants we had put on repayment plans have started to make payments in accordance with that.

"There is a bit more normality resuming in the regularity and frequency of rental payments, which is positive."

That should underpin the dividend and potential give rise to a special one at year end.

[skyship] 12/10/2020 17:14

EPIC mentioned in this article:

[skyship] 09/10/2020 09:15

Specto - thnx for that.

[spectoacc] 09/10/2020 07:31

A line from British Land's t/s this morning:

"Open air, out of town retail parks driving outperformance; playing a key role for retailers"

[jombaston] 08/10/2020 11:59

Clearly they could afford to pay a 5p div but maybe they will edge it in that direction to start with.

It might not be popular with some shareholders but if the share price stays around 50p buying their own shares might offer better returns than many potential real estate investments or initiatives. Likewise for other property companies, buying EPIC might offer attractive returns, even before potential management cost savings

[gary1966] 08/10/2020 10:41

Divi covered 133% and so ample scope to increase divi back to 4.5-5p. Haddington onstream next year that they have already said will enhance shareholder return and so dividend could easily be in the 5-5.5p range in a years time.

[flagon] 08/10/2020 10:01

Happy to lock in circa 8% yield so added to position this morning. Likely divi increases as well ... ATB

[nickrl] 08/10/2020 09:30

Outside of SUPR not sure anyone else is commanding this level of rental collection across there retail estate yet it makes no traction!

Bought in big on this earlier in the year pre covid so reluctant to commit more but if i didnt have that fog now this 8% divi is well covered and by now im presuming they've concluded arrangements with those that will engage so it has a level of certainty about it. Potential here for a top up and maybe a special payment should the moratorium be lifted and the cant pay brigade suddenly turn up with the missing rent!

[skyship] 08/10/2020 08:56

Indeed, Retail Warehouse & regional offices the places to be perhaps...

[hugepants] 08/10/2020 08:21

Remarkable rent collection. Comparable with the urban logistics sector.

[spectoacc] 08/10/2020 07:25

Picking out the good stuff but:

"Quarter 4 rent collection

As at 7 October, 87% of the rent due by 1 October has been collected across the portfolio. This compares to 69% paid at the same point in quarter 2 and 74% in quarter 3. If the tenants who paid their rent monthly in October continue to do so for November and December, it is projected that the Company will collect 93% of the rent due for quarter 4, rising to 95% once rent deferment and repayment plans are factored in"

[spectoacc] 07/10/2020 13:51

Seller still around but happy to add a few more when others on the bounce.

[skyship] 06/10/2020 14:36

Yes, suspect it will; though IMO it's all in the price, and some...