Ediston Property Investm... Share Discussion Threads

[marktime1231] 19/10/2023 21:24

Well we / they voted to sell the retail park assets for 72p. We / they have not yet voted to wind up the REIT (which it would remain, eg the only option would be to reinvest in property) and so the board are not yet committed to return shareholder funds, despite saying that was the intention with 31 Dec in mind. We have not yet been advised of a timetable to vote etc, I don't like the silence, and the original proposal includes that "unless" clause. No longer sure who the key shareholders are nor what they want to do. This may all wind up smoothly Plan A but there is a risk someone intervenes with Plan B.

[spectoacc] 19/10/2023 11:12

@mindthe - the sale is done, the unknown is whether the ignorant Board decide to put an alternative option to a vote - crypto investing? Music publishing (Amigo)?

95% certain our cash is coming back, despite EPIC's history.

[mindthestash] 19/10/2023 11:07

Morning all.
My understanding is that the board have 'sold' subject to contract terms and shareholders have voted for the subsequent wind-up (no pun intended to those of us who voted no). Not sure how a new bidder can enter the fray. Unless buyer has cold feet and can extract the contract this is a done deal. There were ore sale negotiations so expext almost all DD done ahead of sale announcement.?

[gonsan] 19/10/2023 09:20

And what disruption could that be MT? not selling? good! selling at a higher price? even better!

[marktime1231] 18/10/2023 16:04

A bit puzzled by recent large trades and silence from the board on winding up. To hedge my bets I have sold half my position even though we are trading on a discount, with an eye on reinvesting in another REIT ahead of its quarterly dividend.

There is a chance that a new major shareholder might disrupt things?

[tintriangle] 16/10/2023 10:34

The Missing Link:
On 29 September 2023 Ediston Property Investment Company plc (the “Company“;) sold the entirety of the EPIC Group’s property portfolio to RI UK 1 Limited, a wholly owned subsidiary of Realty Income Corporation, for a total gross aggregate cash consideration of £196.8 million (comprising the headline consideration of £200.8 million less agreed deductions of £4.0 million) (the “Disposal̶0;).

It is the intention of the board of directors of the Company (the “Board“) to seek shareholder approval for the voluntary liquidation of the Company with the aim of distributing the Company’s net assets (which comprise of cash) to shareholders by the end of this calendar year, unless an appropriate corporate opportunity is identified in the meantime which, in the view of the Board (having consulted with key shareholders), merits further consideration.
Source Ediston 29 Sept 2023

[tintriangle] 14/10/2023 10:54

Latest on sell of assets:

[gonsan] 12/10/2023 13:15

Has anybody heard anything about the sell and its completion as of late?

[chucko1] 05/10/2023 22:51

Alan PT, I have made part of my original aims and have also invested in things like infra and a bit more SOHO which has taken a "thorough beating" the past week (since I said I was keeping EPIC!!).

When the facts change ...

[alan pt] 05/10/2023 22:29

Sold some myself, think there's potentially better gains than 4% to be had in infra after the collapse there

Can't fault 4% in <3 months on pure risk/reward, but it could be a high opportunity cost if infra bounces meantime

[marktime1231] 05/10/2023 19:48

Who would sell at 69.xp when there is 72p on its way, massive volumes. Someone was in a desperate hurry for the cash.

[cwa1] 05/10/2023 16:44

Sizable volume with a hefty uncrossing of over 15m shares

[marktime1231] 01/10/2023 22:35

I have read that again and take it to mean the Sep dividend is in addition to the estimated 72p. Liquidation on 31 Dec unless they find an investment or hit a snag ... don't be daft, and don't delay! And now the cash is on deposit it might add slightly to net proceeds, or at least help to cover any management fees and admin costs.

Nice to know the monthly dividend will be continuing, albeit eroding the balance of net proceeds.

[mindthestash] 29/9/2023 22:38

Useless bunch. Where are the board!. Any fool can sell 80p for 72p at the bottom of the the curve. Stand up and tell the chair to FO. Why now. No rush. No panic sell.... We were promised a review of options not a fire sale... Sorry to loose a little gem like this. I'll be replacing it with something else. Shame. I've made a note of all of this board and it's a big nono for anything in this sector. I

[nickrl] 29/9/2023 21:42

@chrysalis/marktime naffest RNS of all time the BoDs here are a waste of space what an earth they were paid for is beyond me. Calum and his team was the brains behind this trust love to know what he thinks of all this!!

This made me laugh or should say really angry

" The interest earned from funds in the blocked account will exceed the cost of servicing the debt by approximately 2.3 per cent. p.a. assuming interest rates remain at current levels"

about time but we were shrieking that too them nearly 12mths ago about getting the cash in decent interest earning account. unbelievable.

and what an earth they on about a better corporate opportunity after they sold the family silver. utterly bizarre

surely all we nee now is a company secretary get rid rest of board.

[chrysalis99] 29/9/2023 14:20

Yes I read that as 72p total whether paid as divis or liquidation proceeds. Could well be sooner than 3 months. 3%+ return in say 60 days. Quite tempting, although there's a risk that the Board buys something instead of distributing. I'm annoyed that they muddied the water with that statement.

[marktime1231] 29/9/2023 13:48

Ah ok so the property sale may or may not have completed yesterday but this is not a share take out so the stock continues to trade, actually in high volume today. Punters working on the gap between listed price versus the redemption-dividends to come. Would still like an rns to confirm matters though please and thank you, how about a clear timetable eg what we will actually receive and when?

[marktime1231] 27/9/2023 21:55

Wow, presumably high yielders because they are discounted 35-50%. Bit surprised at the decline of EBOX which I thought was in a sweetspot or was that the last cycle. Anyway, my favourite candidate remains AIRE, even if it doesn't have the sort of portfolio to attract American cash. But there is three months to do more research and judge the mood which could be very different then.

[skyship] 27/9/2023 16:12

marktime - agree with your 2003 above. My basket of UK REITs (API, EBOX & SREI) were on an 8.3% average yield 2weeks ago. The small intervening rally took the yield down to 8.0%; but recent weakness has climbed the average yield back up to 8.3% again.

Happy to bank the divis and wait upon events.

[marktime1231] 27/9/2023 13:54

Are we agreed the October divi is definitely deducted from the 72p per share, and so would be any November or December divi if we haven't settled up by then?

So the income keeps flowing even if we have to wait for the balance.

Fair enough.

[williamcooper104] 26/9/2023 18:02

That's 90 of taxable income in practise it's 70-85, depending on level of capex

[marktime1231] 26/9/2023 17:59

Well observed wc but yes and no, I did say that I would restrict myself to performing UK REITs like EPIC was before sitting idly on a pile of cash. And, by definition of the REIT 90% dsitribution rule, the cover shouldn't be much more than "just" should it?

[fordtin] 26/9/2023 17:35

I'm surprised to see IG showing their clients are atill net 20% short. Can anyone explain the advantage of clinging on to a short at this stage of the game?

[williamcooper104] 26/9/2023 17:14

Don't forget most UK REITs are just covering their dividends (or not) whereas most US REITs are only paying out 70-80%