Ediston Property Investm... Share Discussion Threads

[marktime1231] 21/8/2023 15:11

Wow SocGen increasing its short, one million bets that a deal can't be done at 70p+ is super contrary. Or perhaps it thinks a lack of committed deal news and slow negotiation will cause the share price to fall back in the coming weeks.

[adae] 18/8/2023 19:20

A tardy RNS, but at least it's 'advanced' discussions.

[marktime1231] 18/8/2023 18:02

Common knowledge becomes an official rns two days later! You sense from the language used they are reluctant to guide us towards what is actually happening, and yet again this is Investec the adviser making the announcement not the REIT. If Realty Income are a prefrred cash bidder having considered a range of options under the strategc review then why not say so, since that is the confident speculation in the press. We all know deals can fall through blah blah.

Have all the Ediston people been stepped down or walked out in a huff? They can't all be on holiday, and surely it is the appointed board and managers who owe a duty to shareholders re insider info and doing what is best in our interests. Being paid to keep quiet?

Happy with the presumption that we will get 97% of the latest valuation, or more, observing once again that EPIC is not selling under stress like others have had to.

[nickrl] 18/8/2023 17:11

@fordtin useful info lets hope EPIC are aware of what our company is actually worth

[fordtin] 18/8/2023 14:32

NewRiver REIT plc sold RI UK 1 Limited "gross asset value of £64.4 million at March 31, 2023" for £62.6 million.

Equal to 97.2% of gross asset value.


EPIC's NAV per share at 30 June 2023 of 80.77 pence @ 97.2% would be 78.5p per share.

Every deal is different and the leverage needs to be factored in, but there's no harm in a bit of idle comparison.

[feddie] 18/8/2023 14:21

Most likely cash.

[fordtin] 18/8/2023 14:02

I was wondering if they might try an all share deal with their Jersey subsidiary, RI UK 1 Ltd, but it's not publically traded at the moment.

While searching RI UK 1 Ltd, this came up;

"11 August, 2022


(Alliance News) - Frasers Group PLC on Thursday said it has completed the sale of some retail parks for GBP205 million.

The Sports Direct and House of Fraser owner said the disposal included a number of freehold and long leasehold retail parks held by its wholly owned subsidiaries to RI UK 1 Ltd.

"Frasers Group fascias will operate from leases within these properties where appropriate. Frasers Group in the ordinary course of business purchases and sells properties from time to time," it said, adding it will use the proceeds for working capital.

Shares in Frasers closed down 0.5% at 902.00 pence in London on Thursday.

By Lucy Heming; [e-mail]"




" RI UK 1 Limited acquired Kittybrewster Retail Park in Aberdeen and Glendoe and Telford Retail Parks in Inverness from PAF Lux SCA, SICAV-RAIF - PAF Bravo III - Compartment, NewRiver REIT plc for £62.6 million .
June 27, 2023
RI UK 1 Limited acquired Kittybrewster Retail Park in Aberdeen and Glendoe and Telford Retail Parks in Inverness from PAF Lux SCA, SICAV-RAIF - PAF Bravo III - Compartment, NewRiver REIT plc (LSE:NRR) for £62.6 million on June 27, 2023. The assets generated net rental income of £5.7 million, during FY23 and had a gross asset value of £64.4 million at March 31, 2023. The sale proceeds will be used to reduce NewRiver's net debt as at March 31, 2023 by £31.8 million to £169.5 million on a proforma basis which reduces NewRiver's LTV as at March 31, 2023 to 30.3% on a proforma basis."

[flagon] 18/8/2023 13:47

Date: 18 August 2023

Ediston Property Investment Company plc


Response to Press Speculation


Further to the Company's announcement of 3 August 2023, the Board of Ediston Property Investment Company plc notes the recent press speculation and confirms that it is in advanced discussions with RI UK 1 Limited, a wholly owned indirect subsidiary of Realty Income Corporation, regarding a possible sale of the Company's property portfolio.

The Board reiterates that there can be no certainty at this time that a sale of the Company's property portfolio will take place; nor as to the final terms on which, or the price at which, any such sale might be undertaken. At this time the Board is continuing to conduct its previously announced Strategic Review within the framework of a formal sale process in accordance with the City Code on Takeovers and Mergers, and it will do so until further notice.

The Board will keep shareholders updated as appropriate.

Link :

[williamcooper104] 18/8/2023 12:41

NETL is an equal weight US net lease reit - I'm holding it and WPC and trading in and around other names

[williamcooper104] 18/8/2023 12:40

Os management is first rate; they've continued to use their premium rating/cheap equity to make accretive accusations and they floated off all their office exposure (which is now trading at 3-4x FFO) The fear is that as they grow so large they might not be able to sustain the same level of accretive growth - ADC often gets tipped as the next O (it's not cheap either - I hold their prefs - IMO there's next to no credit risk there and a lot of duration upside) WPC is more the slumbering giant that's reawakened - they long had head winds from winding up their asset management business, but they've got the most exposure to CPI rents out of the big net lease REITs

[williamcooper104] 18/8/2023 12:36

And those US REITs who get divi cover close to 1x usually sell off brutally; so divi cover is very much not moot so if you cut it fine you just end up with expensive equity

[williamcooper104] 18/8/2023 12:34

Yep they do - but remember that's 90 percent of taxable income With capital allowances that's often about 70 percent (the US has similar deductions for depreciation/capex) Most reits do not need to distribute 90 percent

[marktime1231] 18/8/2023 11:41

Oh hang on. US REITS have the same distribution rules as UK ones, 90% of net income must be paid out, so cover is moot. NAV gain prospects? Rent prospects over debt costs? Back to first principles, all else being equal it is the yield they pay eg high quarterly income or good monthly income. Provided they are well backed, well managed and do not face a refinance cliff edge.

Realty Income and WP Carey are both trading at lows because of the general market gloom. And yet Realty Income is so well backed it is continuing to invest heavily in high yield properties. Diversified giants. Suppose you could pick relatively small US REITs operating in hot cyclical sectors but why take the extra risk unless there is particularly high yield on offer. Like a US-version of AIRE.

It feels like it all boils down to entry point, O at $50 and WCP at $60 would be really attractive. Fondness for monthly income might tip me towards O, and that history of ever increasing reliable payment ...



Red flags anyone?

[williamcooper104] 18/8/2023 04:44

It's far from perfect but as a get into US REITs start, the Seeking Alpha platform is well worth a look Yep - own a FTSE 100 ETF and about 70 percent of it has fx exposure You can only eliminate it at expense of having a very concentrated portfolio of UK REITs, small caps and such

[ramellous] 17/8/2023 20:55

If you can watch the US broadcast of cnbc at 11pm tonight U.K. time, Jim Cramer’s Mad Money programme I think has Realty income on as a guest.

[marktime1231] 17/8/2023 18:11

Thanks wc the SIPP admin solving the wht problem is how I remember things from another overseas dividend stream, and that is where I would be reinvesting proceeds. Fx is what it is can't be helped.

I know very little about US REIT performance and valuation. Worth studying O and WPC then, concentrating on yield, dividend coverage and exposure to rising debt cost.

Very interesting deals going through, some happy to take cash at 65p (before this press report of a deal with O maybe) while others are betting long at 70p.

[williamcooper104] 17/8/2023 17:15

Nope - for ISAs you suffer the 15 percent WHT - so best avoided for ISAs - save them for UK REITs - that's the best tax free return as REITs don't pay tax and then neither do you No WHT on US bonds either; but usually on preference shares - many US REITs have prefs and they're often a good fixed income alternative so long as not in an isa

[gonsan] 17/8/2023 17:04

Hello WC104, does the tax workings apply to Isas the same as SIPP in this case?
Meaning, do we receive the whole dividend or is there anything withhold in the US?
Apologies for the question, I don't know if it applies like for UK REITs.

[spectoacc] 17/8/2023 13:44

Indeed @Wc104 - all that really matters, what the assets are bringing in (unless your business is trading those assets).

[skinny] 17/8/2023 13:17

The RNS :-

[williamcooper104] 17/8/2023 13:16

Don't forget US REITs hold property at depreciated cost and don't revalue So they get valued mainly on just cashflow - part of the reason they perform better as not managed for red book

[williamcooper104] 17/8/2023 13:14

Os long term returns are c13-14 CAGR

[williamcooper104] 17/8/2023 13:13

Not at all - US REITs historic performance is far better - WPC is currently yielding close to 7 - and that's on a c1.2x coverage - so actual yield is c8.5 - US REITs have this strange idea that you should actually cover your dividend The treaty withholding tax of 15 percent is really easy to claim on line - you don't pay any WHT in a SIPP and if holding personally you can set the WHT against own uk income tax charge Fx charges from UK brokers are the one to watch out for - IBKRs fees for that are tiny £20 relative to with most UK brokers £10-15k per £1m traded (its not that hard to trade £1m on an average SIPP over several years)

[marktime1231] 17/8/2023 11:42

Citywire reporting this as a premium deal is stretching what we know.

Certainly some insider dealing going on, Investec taking full advantage. What is to stop Realty Income or its advisers and major shareholders from hoovering up stock at 70p if there is an 80p deal on the table?

I note that Realty Income with ticker "O" on the NYSE is famously a monthly dividend payer and seems to be well backed and rated. 26c gross per month on a share price of around $60. Would it be stupid to invest in US property income from the UK? Not that a 5% yield would tempt me, but if the share price drops to ...

[williamcooper104] 17/8/2023 09:37

Well done - good spot during covid I bought in relativity recently - and have added on recent news flowIt retrospect I do wonder if the rather curious RNS was carefully crafted to disclose enough info to allow insiders to load up but not so much as to move the price up close to NAV/bid level