Intu Properties Share Discussion Threads

[williamcooper104] 05/3/2020 23:30

The properties don't have negligible value - far from it The question is how much more are they than the debt (as adjusted for swap/spens nasties)

[ericshunn] 05/3/2020 22:04

There are plenty of UK shopping centres with a negative net value. There is several hundred m of value in this business. But the equity holders will never see it, the dedt investors will.

[h2owater] 05/3/2020 21:47

Russ Mould, the investment director at AJ Bell, said Intu could end up attracting investors looking for a discount. "In theory everything has its price and Intu is trading at extremely deep discounts to net asset value of its business," he said."Now clearly, with the shares being where they are already, the market is telling you we don't believe the net asset values. But to suggest that these properties have negligible value I think is probably laying it on a bit thick.

[h2owater] 05/3/2020 21:44

While the value of the cash call has not been confirmed by the company, Matthew Saperia, a property analyst at Peel Hunt, believes £1bn in equity could fall short of the amount required. He said Intu needed to sell at least £1bn worth of properties and raise £1.3bn through an equity rights issue.

[h2owater] 05/3/2020 21:30

Over effing sold!Stupid market Assets more valuable than Mcap

[williamcooper104] 05/3/2020 21:06

That's debt at nominal not inclusive of swap breaks/spens And book value will fall further And true net income post defensive capex is negative

[buffett9] 05/3/2020 20:57

Currently £1,000 of equity buys approx £50,000 of book value, which is simply incredible. Surely best approach is for Intu to issue Debenture stock. Retail investors are crying out for debentures as they are so rare now. They would then use these to pay off the maturing loans. These debentures shouldn't have the exacting covenants the other types of lending carry, giving the company a much more secure position.

[ny boy] 05/3/2020 14:42

Smart institutional buying started at (STX) after the pull back dyor, just an observation

This stock has never been investable

[ericshunn] 05/3/2020 14:41

Undoubtedly there is value to be extracted from part(s) of the portfolio although as suggested it will be bond and debt holders not equity holders.

[tomboyb] 05/3/2020 14:13

There may well be some value extracted here but it won't be equity holders that extract it -

[ericshunn] 05/3/2020 14:11

Yes old Brixton's management fairly hopeless aswell 😂

[williamcooper104] 05/3/2020 13:57

Don't forget Brixton :)

[zoro9791] 05/3/2020 13:40

Falling knife effect.

[nickrl] 05/3/2020 11:08

Results were due out today although i've just spotted in yesterdays update they've delayed them to next Thursday so perhaps they'll take the extra time to contact a few local authorities and see can get a quick sale on some of the smaller shopping centres.

Cant even risk trading this now as spread is effectively 8-9% on ii currently so the MM's dont want to be caught out.

[jeffian] 05/3/2020 10:21

#3000

Off topic to Intu, I'm afraid, but absolutely right Williamcooper104.



It has all the hallmarks of the SWAPS scandal in the 1990's when Councils were writing interest rate SWAPS without having a clue about the implications. My local council (Hammersmith & Fulham) were the worst* and would have been bust but for the House of Lords declaring the transactions "illegal" and getting them off the hook. I can't see that happening with property transactions or how you would 'unwind' them even if it did.


(* "At one stage it was calculated that Hammersmith was a counterparty to 0.5% of the global trade in swaps, and 10% of the sterling denominated trade.Moreover, quite exceptionally, all of Hammersmith's positions in the swap market were betting on a fall in interest rates. Most large participants in the swap market have their exposure balanced by taking positions on both sides and across multiple currencies, but Hammersmith was essentially repeatedly entering into one-way bets that sterling interest rates would fall; a bet that they would end up losing spectacularly when interest rates climbed from around 8 per cent to 15 per cent in the space of ten months.
From subsequent reports of events, it is not at all clear that Hammersmith had any real idea what they were doing. Each time they entered into an interest rate swap they would receive a premium. They would then treat this as additional funding which they could spend on providing services. Any liabilities payable under the swaps (including the eventual repayment of the premium) would only arise at a later date.")

Scary, eh?!

[ericshunn] 05/3/2020 10:08

If there was a championship for the worst management in the sector EPRA would let intu keep the trophy.

[zcaprd7] 05/3/2020 09:51

What's more alarming is the management, you don't announce a placing unless its in the bag already?

[williamcooper104] 05/3/2020 08:05

It will probably just hasten what was inevitable

[robertball] 05/3/2020 05:04

Investors have dodged a bullet here...Covenant breach due in JulyDifficult to sell off due to site specific structuresNil value

[escapetohome] 04/3/2020 13:35

How will coronavirus affect footfall in retail?

Epidemic predicted.

Venice empty.

Retailers under further pressure.

A share i will no longer follow or consider.

0p.

[sbb1x] 04/3/2020 13:22

Well done to the poster that opened my eyes on this a few weeks ago.

[sentimentrules] 04/3/2020 12:00

Never fight SR

[edinandy] 04/3/2020 12:00

This isn't high street. It's an over leveraged, overly big, poorly manage me shopping centre vehicle. It doesn't have any impact on the high street