Great Portland Estates Share Discussion Threads

[essentialinvestor] 03/6/2024 08:32

hindsight, I've removed the header info as it's no longer appropriate.

[typo56] 02/6/2024 15:23

Perhaps nitpicking, but then it's not the rights issue that's diluting the discount, it's the assets they're buying.

That would be the same, regardless of the means of funding. Funding via rights would seem to be at least as good as funding through selling existing assets at a discount.

[hindsight] 01/6/2024 09:53

EI is correct, as the shares were trading at ~30% discount the right issue has diluted that discount, unless of course they can buy assets with the new cash at -30% which seems very unlikely

[typo56] 01/6/2024 00:07

Accept a price cut on selling 3 or 4 assets? Erm, wouldn't that reduce the NAV?Don't look at the share price, look at the total value of your holding (including the nil-paid rights shares). That hasn't been diminished by the rights issue.

[typo56] 30/5/2024 15:57

You don't have to take up your rights. If you understand rights issues (I suspect many people don't) you will know they don't really offer existing holders bargain shares. Exercising rights works out much the same as simply buying new shares in the market (apart from saving stamp duty and dealing costs).

You could sell the nil-paid shares, or simply let them lapse and receive lapsed rights proceeds.

If you want to retain the same investment as before you could tail swallow (sell enough nil-paid shares to cover the cost of exercising the remaining rights).

If you want to retain the same percentage holding in the company you will need to pay to exercise all your rights. Don't feel obliged to do this though. As I said earlier, unless you have a large holding with material voting rights I see nothing wrong with dilution.

[llef] 30/5/2024 14:40

Why does a rights issue per se make GPE uninvestable?

Its not an emergency rights issue to raise cash to fend off creditors.
As I understand it, the purpose of this rights issue is to supply the management with new funds to buy and/or develop new properties.

It seems to me that either
a) you think the management know what they are doing, and will be good stewards of this extra cash, in which case you pay up for the extra shares, or
b) you think they don't know what they are doing in which case you sell up, or
c) you think they generally know what they are doing, but that this is a bad time to buy new commercial property in which case you also sell up. (and if its a bad time to buy new commercial property, then its probably also a bad time to hold existing commercial property too).

I'd assume that if you were invested before then you would be in camp a), and should pay up for the extra shares.

[essentialinvestor] 30/5/2024 09:35

Why on earth did they not just sell a couple of larger buildings at a discount and avoid a capital raise.

For me it's uninvestable.

[typo56] 29/5/2024 21:11

Rights issues are poorly understood. What's your problem with 'dilution'?

Holders are better off today than before the rights issue was announced.

The only reason I can see you might be concerned about dilution is if you have a significant stake with material voting influence (I very much doubt anyone here does). Otherwise, does it matter what your percentage holding in the company is?

The rights price is set according to the risk appetite of the underwriters. Otherwise, for a given fundraise, it doesn't matter what price it is to existing shareholders.

[hindsight] 28/5/2024 11:39

Thx Sky, Only small here, will hold on for now . API already my largest reit built few weeks ago and started building ASLI but its run away now

[skyship] 26/5/2024 08:13

I see GPE has a "Sustainability and Social Impact Director"!

Frankly, says all you need to know about this lot.

Pack your bags hindsight; sell and switch into ASLI for a secure 18%+ GRY to redemption over 12-18months.

ASLI has joined API in wind-down mode.

[essentialinvestor] 23/5/2024 21:22

* uninvestable for me following today,

[skyship] 23/5/2024 21:03

Utterly appalling treatment of shareholders and shareholder value. That dilution should be wholly unacceptable. It will take years for GPE to make sufficient profit from acquisitions with the cash.

I suspect all about building up the size of the company so as to boost management fees.

Has to be a good short...

[essentialinvestor] 23/5/2024 13:09

Stunned by the equity raise and equally by the sanguine equity market reaction. This is decidedly off sny future buy list.

[hindsight] 15/5/2024 18:48

Still holding on but im bit of a dinosaur

[essentialinvestor] 15/5/2024 16:49

Sold out on the bounce.

[nickrl] 27/2/2024 08:25

@EI still a terrible yield compared to many of its peers.

[essentialinvestor] 26/2/2024 18:26

Goodness this is getting ugly.

[essentialinvestor] 15/2/2024 14:40

Got to be a decent long term price here..but then look at the CLI discount to NAV.

[essentialinvestor] 14/2/2024 12:14

Got a few under £3.70 - just a small position which I hope will pay off.

[essentialinvestor] 11/2/2024 13:21

Agree and GPE is not an income holding for me.

It's a play on whether they can create medium term value from their large development pipeline and some increase in value on their existing portfolio (all be it asset sales likely to continue). £3.60's may be available

[nickrl] 10/2/2024 20:23

Despite share price drop and decent assets yield still very poor here

[essentialinvestor] 09/2/2024 12:52

Added a small amount, may possibly be available in the £3.60's?.

Not a great week for the wider sector.

[essentialinvestor] 06/2/2024 13:53

Towards the low end of recent trading ranges, unfortunately I was out this morning snd missed the mid £3.80's dip.

Any views folks ?.

[essentialinvestor] 23/1/2024 11:43

Another solid update, however no recent asset sales I notice.