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Lxb Retail Share Discussion Threads
Showing 1451 to 1472 of 1475 messages
|Im out of this now, Its been an decent position but the writing on the wall is that management were looking like their best interests were aligned with creating shareholder value but seems like a few projects have not been sold well and now they just want to milk the shareholders for more fees and create a new entity to maintain the bleed, will continue to follow but the window to make money here requires too much hope now ....|
|Well said npt|
|I entirely agree with npt and I sense that the Lxb retail properties board is effectively 'managed' by Tim Walton, the leading light at the fund manager. Only by shaking the tree via the Jersey Financial Commission can private investors hope to be just milked through Newco as opposed to being royally shafted.|
|LXB Retail Properties Plc “the fund” is the listed Jersey vehicle in which shareholders hold shares. LXB Adviser LLP is the fund manager that manages LXB Retail Properties Plc for a fee.
The idea behind the fund is the brainchild of the fund manager and non-executive directors were appointed to the LXB Retail Properties Plc board to make sure that decisions made by the fund manager maximises shareholder wealth.
There is nothing you as a shareholder can do about the recent increase (read bonus) in fund management fees payable to the fund manager. The next AGM is on the 24th of March 2017 and if you are a shareholder you are entitled to vote on the ordinary and special resolutions. If your shares are held by a nominee (any financial institution who holds the shares on your behalf) you can instruct them to vote on your behalf. I would urge shareholders who are not satisfied with the recent increase in management fees to vote against the re-appointment of the chairman and the other director up for re-appointment. This will demonstrate shareholder dissatisfaction.
With the current structure the fund manager will only be entitled to fund management fees as I doubt they’ll reach the hurdle that will entitle them to a profit share. The assets not sold by the end of the year will be transferred to “Newco”. The assets will be transferred to “Newco” at a conservative valuation. A new fund management agreement between “Newco” and the Fund Manager will have to be drawn up and the fund manager will probably insist on a higher fund management fee and also a revised performance compensation structure. Although I understand that the fund needs to move to a simpler structure with the remaining assets, I don’t agree that this shift should allow the Fund Manager with the opportunity get another bite at sharing any upside left. They already got another chance when the NAV was rebased for performance measurement purposes a while ago.
I truly think that shareholders need to lobby the Board of Directors way before “Newco” comes into existence to avoid being shafted by the Fund Manager. The Fund Manager can easily turn around and say because of the small size of “Newco” that they want a 10% management fee, but also 50% of any value added to the assets. Shareholders will be powerless to stop this as they will probably only get to vote on accepting the “Newco” structure, but they won’t see what the new fund management agreement is like until after “Newco” gets the go ahead. The Board of Directors will authorise the new management agreement without having to ask shareholders for approval. The fund had an original lifespan of 5 years. The fund manager has already milked the fund for management fees way longer than anyone anticipated and it would be wholly unfair that they get to share in the upside in “Newco” as they are the reason why “Newco” is now necessary.
I would urge shareholders to write to the Chairman (email@example.com), Intertrust Group (Fund secretary – Sarah Earles, firstname.lastname@example.org) and the company registry in Jersey (email@example.com).
LXB Retail Properties PLC has a market value of circa £65m and the fund manager must be acutely aware that the value of shares owned by institutional investors are now so small that they will be largely passive when it comes to managing these investments. Private shareholders are powerless because they own few shares individually. The Fund Manager will take advantage of this situation to move as much value from the shareholders to themselves.
They already achieved an £0.8m increase in management fees (without deserving it) with only minimal fuss from shareholders. At the end of the year when the Fund Manager insists on a big chunk of any value increase achieved in “Newco” shareholders will be more agreeable as the recent bonus would be at the back of the minds of everyone. The Fund Manager is indeed very crafty. You have to respect them for that. I just wish I owned shares in the fund manager instead of the fund.|
|Does anyone know or found out what is the relationship between the directors and the management company? This would be useful in trying to stop the board giving away shareholders funds. As they both share the name LXB it is probably very close, if not the same people? Does any one want to try and organise a shareholders action group to try and get a few of the large shareholders on board (as they are also being shafted by the investment managers) and also bring to attention of UKSA (UK Shareholders' Association)and Sharesoc.
Unfortunately I don't have the time but will write to the Jersey regulator and the chairman.|
|I expect the investment managers remuneration to be generous but I can not estimate numbers at this point|
|Management fees will step down to £1.8m - thats given for mar'17-mar1'8. What is your view on expenses then in light of your conversation with the chairman?|
|From the chairman.
Not newco as that is still to be set out to all shareholders.
But the board is sympathetic to their friends at investment management and believe what I perceive as excessive remuneration to be appropriate.|
|shaker44: can you elaborate how you ascertained that "different" view from the company? Are you talking about warranties here or actual costs? Are you talking about current company until NewCo or with inclusion of NewCo?|
|The company has a different view about the complexities of the run off. Don't expect expenses to reduce much,|
|Newco is not known yet - which is indeed a risk factor. But the 2017-2018 fees are OK. One should expect admin expenses to go down as well significantly - given that there are no major planning items and capex left.|
|From Mar 17? Really? Then what will happen in newco ?|
|From Mar'17 to Mar'18 the management fee will drop to £1m + £800k ?|
|The management fees set for 2017 are £4.3m. Over 18k per workday. And.Their costs? I leave you to guesstimate...|
|I don't see where the value is here.
Current NAV is maybe £60-£65M? Management fees + costs last year were £4.8M. Surely any valuation that exists on the balance sheet in excess of NAV is just going to be spent on fees?|
|It's hard to disagree with the comments on the manager fees, but I agree with npt that there is still likely to be value here. True, it will be well short of our hopes of 18 months ago, but a number of issues look like they are close to completion, and we have to hope that the rollover vehicle can deliver more value than a firesale now, after taking into account the next lot of fees!|
|Not so long since the Rushden news and everyone was fighting to buy at 40p plus, time to snaffle a few more I think.|
|That is outdated news. You will now end up with shares in the rollover vehicle as well as cash.|
|From RNS 21/11/16 Q2/17 - the Board intends to put proposals to Shareholders which will enable all Shareholders who wish to exit the Company to receive full value for their shares.
This will be when I will be done with this lot if it happens.|
|Not sure I agree with your sentiments of making 20% over 6 months, unless I was the fund manager. Sorry but I have come to the opinion that this fund is not being run for the benefit of the investors but that of the boards and fund manager. Therefore I don't have a lot of confidence in them. If you are looking for a better investment I would consider BOO or HUR, they are doing very well for me. Not a recommendation and would need some research.|
|20% over 6 months..oh I must have missed that bit|
|IMHO This is a great place to park some cash. Stocks at record highs the world over where else are you going to be able to make 20% plus over the next 6 months?I am open to suggestions though!|