Ediston Property Investm... Share Discussion Threads

[chucko1] 05/5/2023 16:00

They may have used the term "uncovered" loosely, in that net renal income ex-costs fails to cover the EPRA dividend, and the cash AS WELL AS interest earned makes up the "capital" they refer to.

Otherwise, I am at a loss as to what the heck they've been doing with this cash. Is it in the company safe?

[nickrl] 05/5/2023 12:16

@marktime what doesn't add up is even the free 50m of cash should have attracted at least 1m in interest by now so as i say ill be interested in what the accounts show.

[spectoacc] 05/5/2023 11:27

@nickrl - good point on the cash, the fact the divi is still coming partly out of capital (hence the NAV drop) suggests it's not being used in the way it should be.

And fair point re only 7 weeks away - but "early" in Q3 could easily be another month beyond that, and how long have they had already?

They seem determined to do "something".

[marktime1231] 05/5/2023 11:20

So they don't mean their own FY23 Q3, the proper convention, which started on 1 April, they mean 2023 calendar Q3 which starts 1 July. Daft blighters. In which case yes we could be waiting another couple of months for a conclusion.

My guess is there has been interest but nothing to bite the hand off. If the backdrop is stabilising, so maybe the next quarterly valuation will be slightly positive, no need to rush, except for the eroding effect of uncovered dividend and, as postulated above, the debilitating effect of the costs of the review process itself.

[nickrl] 05/5/2023 11:09

@marktime arghh their Q3 not calendar Q3 so around 7wks then before they give an update.

[marktime1231] 05/5/2023 11:05

Hang on ... we are in Q3 since April aren't we, so "early Q3" has passed?

Are there extra costs eg of the review which are in Cap Ex or Management & Finance costs, which seem to be the main reason why NAV has been dragged back a penny.

[petersinthemarket] 05/5/2023 10:50

Is it simply time to sell up and move on? Investors don't like doubt and with so many options open there seems to be a lot of doubt on whether any final decision is going to be to holders' advantage.

[nickrl] 05/5/2023 09:26

Given they've basically told EDISON to mind the shop only for the next 6mths then the cash should be placed in the money market. They don't control all the cash as 31m is trapped in one of the loan pools and whether its treated as offset or accrues interest isn't clear. Looks like we will have to await the financials in a few weeks to get a better insight.

[williamcooper104] 05/5/2023 09:05

Ditto This was looking like the beginnings of a really good reit

[flyer61] 05/5/2023 07:59

100 per cent agree StA.

[spectoacc] 05/5/2023 07:42

Missed that, thanks @cc2014- didn't read far enough.

Mind you - they've failed to invest the office cash since late 2021 anyway :)

"Maximum flexibility" implies selling assets piecemeal and returning the cash to shareholders is still on the table - why else hold on to the cash (& shouldn't it be earning interest, and covering the divi that way?).

Merger with another REIT only works if on near-identical discounts, otherwise either EPIC, or the other REIT(s), will see an unfavourable move out in discount. Has already been shown that larger - say two or three times the size - does nothing for the discount improving.

So after years of making themselves Retail Park focussed, EPIC would again become a generalist? Why?

[skyship] 05/5/2023 07:41

Also surprised to see the NAV in Q1'23 actually fall - only slightly, but thought it would have risen a tad...

[cc2014] 05/5/2023 07:36

"As stated in the announcement, the Board has a preference for structuring a merger with one or more REITs, but it will consider all options available to the Company that offer maximum value for shareholders"

Looking in from the outside without the benefit of information avaialable to the Board, the review seems fanciful.

I see the logic of a merger which would be to reduce costs through economies of scale and I can see why shareholders are pushing for this but as one the REITs on a lower discount compared to peers I continue to struggle to see how the transaction will be implemented.

And now we have this:

"To provide maximum flexibility for the Strategic Review, the Board has paused the investment of surplus cash until the outcome of the review has been determined. The dividend will therefore remain uncovered and funded from cash resources."


I see nothing wrong with testing the market and seeing what can be done about the discount but EPIC know seem to be tying themselves up in knots. Unless of course the likelyhood of something happenning is high which is what the Board seem to believe.

[spectoacc] 05/5/2023 06:06

Interesting, because there's been no RNS'ing of any bid approaches:

"Since commencing the Strategic Review, the Board and its advisers have engaged with a significant number of interested parties and the Board expects to provide an update to shareholders in early Q3 2023."


Why does this take until Q3 just for an update? But a strong implication that "something" will happen, which is going to be a pity. EPIC on its own was perfectly viable, and EPIC with most other suitors will be on a larger discount.

[cwa1] 03/5/2023 13:32

Let's go round again...

Declaration of Interim Dividend



The Company declares its interim dividend (property income distribution) payment in respect of the period from 1 to 30 April 2023 of 0.4167 pence per share, as timetabled below:



Ex-Dividend Date:

11 May 2023

Record Date:

12 May 2023

Pay Date:

31 May 2023



This monthly dividend of 0.4167 pence per share equates to an annualised dividend level of 5.00 pence per share and is unchanged from the previous dividend declared on 24 March 2023.

[hindsight] 26/4/2023 08:50

Wish TRY would stop the promo, as wanting to see discount move towards 15% historic lows to buy

[spectoacc] 26/4/2023 07:27

Specifically asked about timescales, specifically didn't get an answer - anyone else, or any guesses when this review might conclude/lead somewhere? You'd think any bids received would be RNS'd by now, tho talks in the background re mergers might not be.

TRY still pumping away I see (Citywire). If I were to chose a small REIT in need of merger/change of management, TRY would definitely be on the list.

[nickrl] 14/4/2023 16:18

I see another missed opportunity for EPIC as BLND has picked up another retail pk on a 8% yield.

[...]

[cwa1] 12/4/2023 19:09

It's just the uncrossing trade(UT) that happens at the start and finish of (almost)every single trading day, matching buyers and sellers on the book. There's nothing "funny" or illusionary about it. If tomorrow morning's UT is at 67p
it WILL show as being down 1.8p on ADVFN

[kenmitch] 12/4/2023 19:05

Thanks for the explanations. Happy to be put right as how shares are priced I’ve never bothered with. Hence my ignorance. Wondering now if EPIC opens around 67p tomorrow whether that will be shown as a 1.8p share price fall? Not that any of this matters compared with getting clued up on the Investment case for a share or Investment Trust.

[drradcliffe] 12/4/2023 17:34

12-Apr-23 16:35:08 68.80 35,529 Buy* 66.80 67.20 24.44k UT

The last trade went through at what looks like a negotiated price because of its size.

I don't think there is a specific problem on ADVFN, Stockopedia and LSE are all showing the same strong closing price.

[cwa1] 12/4/2023 17:30

The UT was at 68.8p, so that's the closing price

[kenmitch] 12/4/2023 17:19

That strong close is an illusion and it’s happening too often on ADVFN live prices pages.

Check it out.

Actual closing price was 66.8p to sell and 67.2p to buy, but ADVFN show a closing price well above that at 68.8p.

Why? It’s very misleading.

[chubb24] 12/4/2023 15:56

very strong close