European Real E Share Discussion Threads

[flyfisher] 16/12/2013 11:47

It seems a fair deal in that the 6.1m discount to book helps to achieve an early settlement discount of 12.6m . Also europort has rather short remaining lease terms and is likely to loose a major tenant in db schenker who have taken some new premises nearer to the airport.
Assuming the sale completes prior to year end and we get the benefit of the early payment discount , I see the nav as being about 181p with the share price at about a 35% discount.
What typical discount or premium do other unleveraged European propco's trade at?

[gary1966] 16/12/2013 11:18

badtime - phraseology a bit off but capital return to us shareholders one way or another and closing of that discount to NAV hopefully.

[badtime] 16/12/2013 10:50

Profit.....that would be my take on it too....and possibly the buyer knew that too!

Gary buybacks? Not tender offers then?

[profitaker] 16/12/2013 10:39

I would have thought the sale price reflected their desire to repay LBG in full.

[gary1966] 16/12/2013 10:09

Europort gone at 11% discount to 30/06 NAV. Not sure about how good a deal that is but if we can get the money by 31/12 then all LBG debt repaid. Could we possibly of extended the average lease beyond 2.1 years to bump up the sale price? I would hope that we would now get the full 5.7% repayment reduction on the €221.3m loan (€12.6m) which softens the blow considerably of the sale price.

Nice to be debt free though. Roll on those buybacks from any future sales.

Gary

[mozy123] 11/12/2013 13:30

Great news!

[profitaker] 11/12/2013 12:41

Duren sale completed.

[profitaker] 26/11/2013 11:04

Panrico parks the bankruptcy although despedidrá 1,000 employees
745 company employees and 300 self-employed lose their jobs
Unions agree on wage cut of 18% for those who continue to work
11.26.13 |. 10:11 h NEWS FOUR / AGENCIES |
Tags:
Panrico · Consurso creditors · dismissals · Self ·
Panrico parked bankruptcy protection this morning after reaching a final agreement with the unions on the company's proposed adjustment plan, which includes laying off up to 745 workers in a workforce of over 2,000 employees and 300 freelancers and a reduction pay up to 18% for the rest, pinpointed in people familiar with the situation.

Panrico temporarily suspended the payment of salaries to its 4,000 employees
Specifically, after a marathon meeting, the company management has made pastries agreement is final and binding after it has backed negotiating table with nine of its thirteen members.

A 745 layoffs including Redundancy Employment (ERE) in the template 300 autonomous firing of its distribution network and pay cut of 18% for employees who manage to hold his position adds.

Specifically, the agreement provides extinctions up to 745 workers, to be held in the years 2013, 2014, 2015 and 2016. Based on the good performance of the business, labor extinctions in the years 2015 and 2016 may be performed or not.

A new feature from the previous era that severance pay rise of 23 to 25 days of salary per year of service with a maximum of 14 monthly . Due to the "dire financial situation" of the company, such compensation may be paid within a maximum period of 18 months from the effective date of the layoffs. In any case, the company will have sufficient safeguards to ensure the perceive of such compensation.

For the remainder of the agreement affects workers will apply as it collects precauerdo, a pay cut of up to 18% for the months of October, November and December wages this year.

This reduction will be a maximum of 15% for the years 2014, 2015 and 2016, years for which this percentage may be reviewed every six months in view of the evolution of the company, so that if the gross targets are not met (Ebitda) fixed, the pay cut for the next semester is 18%, otherwise remaining 15%.

For workers with agreed wage, the average wage cut will be 27%.

The parties must develop social accompanying measures to reduce the impact of dismissal, among which include: internal and external relocation, geographic and functional mobility, jobs, among others.

Business units in the Canaries and Portugal will not be affected by the restructuring plan that is taking on the Peninsula.

[colonel a] 26/11/2013 10:58

Any chance of a translation ??
I would have thought there was an overwhelming case for Panrico to buy some / all of the properties they currently rent.
But can they raise the dough ?

[flyfisher] 26/11/2013 10:15

It would appear that panrico have suspended bankruptcy protection and made an ongoing agreement for staff and pay cuts.

hxxp://www.cuatro.com/noticias/economia/Panrico-concurso-acreedores-despedidra-empleados_0_1706775110.html

[profitaker] 18/11/2013 17:01

Fairly benign IMS. Wouldn't mind betting Frankfurt is being marketed.

[jaws6] 18/11/2013 08:12

No news shown in proquote yet

[flyfisher] 18/11/2013 08:10

I had thought that the potential Lloyds early settlement discount was on the paid down debt at year end of 68M , the rns indicates that it is on the original loan size . In itself it would seem to add in the region of 30p to shareholder value , if it can be achieved.

[sharpshare] 18/11/2013 07:40

Interim Management Statement as at 30 September 2013 out this morning:
Schroders is making steady progess.



EUR 57m cash from Duren sale expected by year end.
Insurance money from Murcia fire in progress.
Panrico rent up to date.
More new lettings at Europort.

"Once all debt has been repaid in full surplus cash will be returned to shareholders via capital distributions."


Share price now about 120p
NAV est about 200p
Net loan to value est about 33%
Discount 40%

So if properties are sold at latest market valuation shareholders might make 67% from current share price.

[bondholder] 18/11/2013 07:23

Interest rate dropping to 2.5% from January. Nice !

[sharpshare] 15/11/2013 21:52

Nice rise on week

[sharpshare] 15/11/2013 10:23

Discount still circa 40%.
Crazy market.

[badtime] 15/11/2013 10:11

spread has narrowed nicely

[sharpshare] 14/11/2013 11:16

Big 500,000 volume so far today. Potential overhang to be cleared soon?

[alanji] 11/11/2013 12:24

Agreed it does not make a lot of difference, although I would assume cash is held in euros to match liabilities. 1.5pps seems a reasonable compromise.

[profitaker] 11/11/2013 11:44

Alan

Using your figures the NAV has changed by 4.7pps following a change in FX rate of (1.1958 - 1.1668) 2.9 cents. So 4.7pps/2.9 cents = 1.62pps for each 1 cent change in FX.

But I've assumed that cash at bank, trade receivables & payables are held in sterling. This amounts to a net GBP 13.8m unaffected by any change in the FX. In reality some, possibly all, or no cash at all is held in Euro. I don't know.

Let's split the difference and assume a 1 cent FX changes affects the NAV by 1.50pps. Anyone concerned ?

[alanji] 11/11/2013 10:51

Profitaker, can you explain your figure - I make it 1.9pps, with a reduction of 4.7pps from the June rate of 1.1668 to 1.1958 now. However, these two figures do not quite reconcile:-
£64.47m nav at June = €75.22m = £62.9 @ 1.1958 = 4.7pps reduction
1 cent change = €0.752m @ 1.1958 = £0.629m = 1.9pps
so the 2.9c change since June should give 5.5pps (at 1.9pps)
I cannot see where my error is.

[nigelwestm] 10/11/2013 17:42

Could be worth giving Cenkos a call to ask them if they have any notes since they are the broker after all...

[profitaker] 10/11/2013 15:22

Sharpshare - I don't think any brokers cover this one. Hardly worth it as it's being self liquidated.

Anyone concerned with a weakening Euro now that the ECB have cut rates, UK Plc expected to revise growth forecasts upwards, and we're now unhedged ? A 1 Cent change in the EUR/GBP rate will change the NAV by 1.26pps.

[sharpshare] 09/11/2013 10:30

Interim Management Statement as at 30 September 2013 should be out soon giving more details of the remaining property portfolio and realization progress.

Last year the September 2012 Interim Management Statement was announced on 16 November 2012.

Some investors invest based on stock screen searches using metrics from balance sheet data. These investors might be missing out as the current balance sheet has changed significantly since the published interims especially with regard to net loan to value and derivative liabilities.

Anyone seen any brokers notes on ERET?