Invista EUR Prf Discussion Threads

[skyship] 02/7/2011 15:51

P93 of the prospectus suggests that IERP holders will be redeemed at no better than par. So just enjoy the 9%pa dividends until then. IMO Fair Value seems to be 104p, where the GRY = 7.05% assuming redemption in two years time on 30/06/2013.

Please post if you view it differently.

[skyship] 30/6/2011 07:41

IERE the latest to go for liquidation; in this case over 3 years. So now IERE, MERE & TEIF have all faced the reality and all provide good upside.

I wonder where this leaves IERP. If IERE needs to retire debt, presumably that starts with all the bank debt. But IERP holders will want to be advised of their fate too as the share price is currently @ a premium - 105p v. 100p par

[cerrito] 18/9/2010 20:48

A yield of 6.45 for an instrument with 6 1/4 years to go is broadly in line with ZDP yields so I suppose could be justified but would be surprised if rose further.
While I have not checked in this case I assume you only get voting rights if the dividend is missed.

[envirovision] 18/9/2010 12:38

at current 114 to buy the yield to maturity is 6.45%. The same broker / manager that did the fund raising for IERE has just done a similar thing to a far better capitalised company queen's walk investments, where the pref yield 8% Ticker to be: RECP where the prefs there are not only senior debt but covered X2 book value and X6 on interest income.

I'm not an expert on IERE but comparing risks, clearly the yield to maturity seems way out of kilter. Something is askew here. I would have wondered if it were stake building for takeover but the weird thing is IEREs share price went down.

Maybe it really is just a short term anomaly?

[david77] 18/9/2010 08:39

These pref shares had a 7 year life. At 114, the running yield is 100/114 x 9% = just under 8%.

However, they will lose nearly 2p/year between now and maturity so the real yield is nearer 6%. Still not bad. Someone cleverer than I am may wish to calculate the real yield to maturity.

Watch Northacre - Tuesday will reveal whether I should have kept my IERPs.

[karldinnel] 18/9/2010 00:10

OK. Done a bit of digging and from what I can find pref shares don't generally have voting rights attached to them except in relation to articles 44-46 in the Companies Act.

I haven't got time to find out what articles 44-46 might mean (a quick Google search doesn't come up with any definitions), and so it's pure guesswork on my part but someone must have a reason for wanting to buy up these shares at 112-114p!!

So, for what it's worth here are three ideas:

(i) Someone is going around buying up shares that pay a very good dividend and are prepared to pay up to 114p in order to achieve around an 8% yield, i.e. they think that level of interest is going to significantly outperform inflation for a few years yet (a good reason to buy and probably the most likely reason).

(ii) Someone has been shorting these shares and for some reason needs to buy them back pretty sharpish, i.e. we might have seen a short squeeze Friday. (I don't think this is likely but anything is possible I suppose).

(iii) Someone wants to take over IERE and for some reason unknown to me they feel that they have to hoover up a load of preference shares as a key part of this process (OK, probably a load of rubbish but I can dream!)

[karldinnel] 17/9/2010 23:36

david77. Yes, but you have to wonder what prompted today's rise. Do the preference shares have any voting rights attached to them? If they do, then that could explain someone buying them up...

[david77] 17/9/2010 16:20

RNS Number : 7868R
Invista European Real Estate Trust
27 August 2010

Invista European Real Estate Trust SICAF(the "Company")

Preference Dividend Payment Dates


The Company announces that the Payment Dates for all future payments of
dividends relating to the Preference Shares will be changed from 31 May and 30
November to the third week of June and the third week of December respectively.
Precise dates will be communicated to Shareholders in advance of each payment.

The changes will allow the Company:
� to reduce administration costs in respect of the Preference Dividend
payment process
� to coincide the payment dates of the Preference Dividend with any dividend
payable in respect of the Ordinary shares.

The Preference Dividend is calculated in respect of the time period between one
Payment Date and the next. Accordingly, the next Preference Dividend payment due
in the third week of December (the "December Payment Date") will be increased
pro rata to reflect the additional time period from 30 November to the December
Payment Date.
-------------

So I reckon that the next dividend will be about 4.5p + (21/365) * 9p = 4.5p + 0.6p = 5.1p - not enough to explain the current prices.

Sold mine @ 112.11 and bought more Northacre

[karldinnel] 17/9/2010 14:57

Anyone know why these have been shooting up recently? I can't think we're anywhere near ex-div date yet they are 112-114.25p at the moment...

[david77] 28/5/2010 12:52

I've got mine

[crawford] 28/5/2010 12:11

Payment due today - 3.699p

[skyship] 15/3/2010 11:47

See I topped up too soon - no matter.

Dividend Pay Date confirmed as 31st May; but XD date not yet announced.

[skyship] 09/3/2010 09:15

In view of the fact that the share price has held at just above par, but mainly due to the strengthening ords, I have topped up my holding @ 102.25p. At that price the current yield = 8.80% and the GRY to redemption on 30/12/2016 = 8.67%.

[skyship] 09/2/2010 12:20

Bt my first IERP @ 100.45p today. Plan to accumulate a few on further falls.

I suppose they could trade down into the 90s as people rebalance their portfolios, but I suspect that 93p might be the floor as they would then cross into a double digit Gross Redemption Yield.

[skyship] 26/1/2010 16:26

Beginning to drift back as holders take profits as the Market comes off. Now offered at 105p for a Gross Redemption Yield (GRY) of 8.3%. Suspect these will drift back to par & will then be a good BUY.

[taylor20] 15/1/2010 12:19

I know the payment dates, any one know the Record/Ex dates?

"31 May and 30 November in each year from 2010 to 2016 inclusive and the date of final repayment of the Preference Shares"