Lxb Retail Properties Share Discussion Threads

[molrey] 21/11/2016 14:38

I think they are talking about the final figure being more than 38.7p rather than 56.7p and this is the way the market has interpreted it, but it's the use of the word 'today' that confuses matters. It does read how Mad Foetus describes in 1322. I also emailed the company earlier this morning.

[salchow] 21/11/2016 14:28

Further to my point above the NAV is based on the stage reached on the developments at 30.09.16 which would be expected to be calculated on a conservative basis. Perhaps the completion of these developments will result in significant increases to net assets. On the other hand if they run into problems the costs incurred in completion may cover the increased valuation. Then there are costs such as directors remuneration and all the general expenses of running the business. Only the directors will be able to guess at the final position and I think at the moment there must be significant risks. I also thought the Brexit excuse was a bit lame with companies such as New River Retail reporting that it had little effect on their current trading.

[salchow] 21/11/2016 14:20

I am afraid it all looks very clear to me. The accounts to 30.09.16 show NAV of 56.7p. There is no doubt about this. The distribution of 18p was later so that reduces the NAV to 38.7p. However, you have to remember that although the assets may well realise more than this there will be all the running costs of the company to pay in the meantime.

[loobrush] 21/11/2016 13:42

Have e-mailed the company, waiting for reply.

[mad foetus] 21/11/2016 13:26

I disagree. The statement is dated today and it refers to the NAV reported today. The statement is not speaking of the position at 30 September. But it is rubbish phrasing which should have been picked up before publication.

[tabhair] 21/11/2016 13:04

It's not really that confusing.

These accounts were for the period ended September 30th. When management say they are confident that the realisation will be in excess of NAV for this period (56.7p), they mean they will realise at least the 18p that has already been paid to shareholders, and at least 38.7p for the current NAV that remains.

The 18p that was paid out last month has clearly been recorded as a post balance sheet event. Please check the end of the interim report, I have copied and pasted the line.

23.
Post balance sheet events
The return of £30.3m cash to shareholders announced in September 2016 completed in November 2016

[orinocor] 21/11/2016 12:51

loobrush, yes what an absolutely stupid and confusing comment by the company. Why should a NAV that is before payment of a very big 18p dividend be of relevance? I think tabhair's intepretation is probably right but it should be easy enough to email them to confirm. That's if they know how to read and write.

[simonsaid1] 21/11/2016 12:47

I wonder to what extent this confusion is contributing to the share price tumble. Not sure who it is that's selling at such huge losses. What is the point?

[loobrush] 21/11/2016 12:27

Well the RNS says
The amount of ultimate value realisation is heavily dependent on the grant of planning and a legal agreement with The Crown Estate at Rushden Lakes and a successful sale of Stafford Riverside, but your Board remains confident that the final figure will be in excess of the NAV reported today.

I must admit that is confusing-you can take it two ways-either as you have said or as I have posted.
It does say-in excess of asset value reported TODAY-not as 30 September.
Perhaps someone could contact the company for clarification.

[daneswooddynamo] 21/11/2016 12:26

No time to panic, as others have said above just make sure you put a cross in the same box as the directors do!

[tabhair] 21/11/2016 11:50

Loobrush, the 56.7p reported NAV was for the period ending 30th September. Therefore that number is inclusive of the 18p dividend, which was only disbursed in October. As of right now, the new NAV is 38.7p.

[molrey] 21/11/2016 11:33

Loobrush,

" your Board remains confident that the final figure will be in excess of the NAV reported today."

I didn't interpret this statement the same way as you but having re-read it I'm hoping you are correct!I had assumed the 'NAV reported today' needed to be adjusted for the 18p return.

[tabhair] 21/11/2016 11:02

There is surely no need for ISA shareholders to sell.

the company have stated that shareholders can either take cash and a loan note or cash and shares in the newco (which will be AIM listed). If you don't want the newco shares, then you can just sell them.

[tiltonboy] 21/11/2016 10:56

Clearly a disappointing announcement. Just have to hope that Rushden planning gets granted, and they can claw back some NAV.

[loobrush] 21/11/2016 10:53

Well not good news this morning but probably one should have expected a bit of a downturn after Brexit.
Still its all to play for, the net assset value is still 56.7p with the board saying that " your Board remains confident that the final figure will be in excess of the NAV reported today."

This would indicate a value of 60p plus-so in my view I am holding on to my shares and not selling at todays price as this would give a 50% upside from here.
The directors also have a lot riding on this with their large shareholding.

[catsick] 21/11/2016 10:53

I suspect what is going on here is that the management are all planning to roll into newco , makes sense to play down the value of the assets ahead of this, they are pretty heavily invested and this will be the game plan, the loan notes will give cheap funding to newco which is where the value will end up for those who dont just want cash, I bought some more this am on this basis ....

[simonsaid1] 21/11/2016 10:37

My shares in LXB are held in a stocks and shares ISA, I am extremely confused now. Hoping Simon Thompson issues an update on this today. I would rather not sell right now at rock-bottom of sentiment, but nervous about my losses getting even worse (I'm at -14% now on my initial investment).

[orinocor] 21/11/2016 10:30

gotcha. It was the NAV of 56.70p that was confusing me but I now see this is historic and does not include the return

[molrey] 21/11/2016 10:23

Orinocor,

Nav has fallen from around 46p to 38.70p whilst the share price has fallen from around 48p to 39p this morning so a fairly rational market response I would say.

A very disappointing update. In the interim report to 31/03/2016 they stated 'we remain confident that the end value for shareholders will exceed the 64.18p (46.18p adjusted to today's money) per share referred to above by a comfortable margin'. Today they are just confident of returning more than the 38.70p NAV.

Will be interesting to see what price level they are willing to carry out share buybacks/director buys at.

[orinocor] 21/11/2016 10:05

is it those with shares in ISAs selling out because of this bit. I doubt you can hold a loan note in your ISA.

Although work is continuing with the Company's advisors as to the form and structure of any final transaction, this is likely to involve a scheme of arrangement for approval by the Jersey court; however, the principle will be that Shareholders will be offered the choice of receiving (i) full value for their shares in the form of cash and a loan note backed by the assets in the anticipated cash category above, or (ii) value in the form of shares in a Newco which will take on the assets and liabilities that do not fall as cash or anticipated cash, or (iii) to elect for a combination of both. It is intended that if possible, Newco's shares will be admitted to trading on AIM so as to give Shareholders a meaningful ability to participate alongside management in any remaining upside as well as providing liquidity to their investment.

[orinocor] 21/11/2016 10:03

Not really familiar with this but if the NAV is down 7.5p why are the shares down 8.75p. The discount to expected realisation proceeds has surely grown by about 15%.

[simonsaid1] 21/11/2016 09:50

Short summary:

StockMarketWire.com - LXB Retail Properties' net asset value per share fell to 56.70p in the year to the end of September from 103.27p.

The company said the fall in net asset value was 7.5p per share after adjusting for a return of capital of 38.0p per share in June. The major constituents of this reduction are: - losses caused by delays in the programme; highways delays at Rushden Lakes, construction delays at Stafford Riverside and at Greenwich Brocklebank where the contractor ceased trading. These issues have impacted on delivery dates for the retailers and hence rent commencement

- losses caused by increased construction costs at Rushden Lakes, Stafford Riverside and Sutton;

- reduced expectations of sales values on the remaining portfolio.

[loglorry1] 21/11/2016 09:43

Now we know why there were no director buys after they received the latest dividends.
Actually I think more likely that was because they were in a closed period so directors couldn't buy. Will be interesting to see if they step up to the plate now though?

Log