They are taking back net assets of £21m vs a liability of £35m so looks like loss of £14m which is broadly a reversal of the £10m gain they realised on disposal.
Not a major issue relative to market cap and I expect the values of those assets has increased so assessment of net asset value may be on low side. The disposal was previously part of the gearing reduction plan, but given successful sales elsewhere not sure this is much of an issue. |
Grainger will get its money back with legal costs by taking ERIL back from the administrators....
"We sold you ERIL, you didn't pay, we'll take it back. Oh - and with interest and legal costs." |
Huttonr - I can't get my brain around the announcement.. however, Grainger doesn't need cash having lowered its gearing ratio.... backdrop for the group as a whole should be strong.... |
The market seems to have taken this latest event (non- payment by Clifden) remarkably calmly - does anyone have an idea as to the financial effect on Grainger? |
A tip?
Buy Inland Homes, 58.75p now, Simon Thompson in the IC, WH Ireland and Finncapp all target it to go to at least 70p on strong results. AGM in December.
They develop in the commuter belt outside London, a market which is still booming. Telford Homes results tomorrow will prove this nicely and should reflect well on INL.
The share traded in a tight range between 43 - 50p for all of 2014. Broke 50p recently. New target is 70p. |
Not in this one yet but i do have a stake in SGM.This is a really interesting read and very relevant to GRI |
Great set of results, not much of a response from share price yet.
Presentation is on website.
hxxp://www.graingerplc.co.uk/~/media/Files/G/Grainger-Plc/results/full-year-results-presentation-2014.pdf |
looks good read .agree |
Great set of Final results, profits up 26% to £81m. |
Finals are being reported on Thursday 20th November 2014. Hopefully share price might get a boost. |
Very good 90K share purchase announced by non exec director Simon Davies |
Anyone have any idea on the price weakness.?
I see in the last week the two brokers following this-Oriel and Jefferies- reiterated their buy and did not change target price; trading volumes in last week have been in line with normal, although on the 19th 1.8m shares were traded;wife of a director made a share purchase on the 18th; Norges Bank increased their holding and nothing untoward in the Aug 6 IMS.
I personally have become more cautious on property in the UK-but I would not have thought that GRI all that vulnerable and I guess the headwinds in Germany have become stronger over the last weeks but for me not to warrant this fall.
Appreciate any views. |
Cheers am watching and waiting for now. |
Whilst house prices may be cooling off should this not be supported by profit from existing or even increased tenancies? Of course it is the market's view of matters and its expectations that determines the share price and this does not necessarily accord with the real state of affairs, Or am I misinterpreting things? |
Its the OXMAN,
It does seem to have fallen quite far for no particular reason (although a few other property stocks have somewhat similar charts). Latest IMS clearly indicated that the next set of results will be strong, although market may be responding to some of the signs of a slowing in house price growth. I am holding, not yet topping up, but will be starting to think about it if it continues downwards. |
Scburbs or other holders. Any views on current price. Personally am thinking of making a purchase here. |
Some investors in Mountview Estates [MTVW] have suggested it is window-dressing for a possible sale.
The only quoted company which might fit is GRI.
If interested, see my post today re MTVW's AGM yesterday: |
And what about the excellent performance against all key financial metrics. Int. A. Cunningham, CEO of Grainger. hxxp://goo.gl/X9NtFG |
Very strong set of results. Grainger NAV up 10.6% to 266.9p (278p if you add back the swap MTM).
hxxp://www.graingerplc.co.uk/~/media/Files/G/Grainger-Plc/pdf/download-centre/hy-results-announcement-pres-2014.pdf |
Results out tomorrow, should be a strong performance. |
Difficult to evaluate the acquisition without knowing the extent of the discount, but good to see GRI back on the growth trail.
Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest listed residential property owner and manager, today announces the acquisition of a tenanted residential property portfolio in London for £160m from Property Investments (Chelsea) Limited. The purchase price is the investment value of the properties as at the date of acquisition and represents a discount to their vacant possession value.
...
The primary profit driver for the assets over the long term will be the crystallisation of the capital value upon sale at vacancy, benefiting from the unwinding of the reversionary discount at purchase and any house price inflation over the hold period. This will be enhanced by significant development potential. The portfolio comprises a majority of regulated tenancies and currently generates a gross rent of £1.92m per annum." |
Nice recovery today, up 9p so far expect this to kick on nicely. |
Macaulay Walk phase I launched on 6 February 2014, 28 flats released, 27 currently reserved.
Looks likely to be a very profitable development for Grainger.
hxxp://www.macaulaywalk.co.uk/#/available-apartments/
This is what they said in the IMS on 6 Feb.
"In the coming months, we expect our Development division to become a greater contributor to profits as the significant pipeline generates sales; our Macaulay Walk scheme in Clapham, London, which launches to the market this week, is a key example." |
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