Matrix European Real Estate Share Discussion Threads

[monkey puzzle] 24/2/2010 10:26

I am not even going to bother commenting on this latest rubbish....from the GKP thread...



karldinnel - 24 Feb'10 - 10:24 - 2307 of 2308


WARNING! I'm sorry to have to tell you all this but a poster called Monkey Puzzle (who has been a nuisance on the other GKP threads before) is now stalking any bulletin boards I am posting to and filling it with LOLOLOLOLOL over and over.

I think his intention is to trash any bulletin board where I might hold shares.

Hopefully, Frenchboy can ban him if he does this here, but I would advise all of you to filter him because he is ruining many of the other treads I post to.

Sorry about this.

[monkey puzzle] 24/2/2010 10:23

So now you're trashing the PPA thread...very clever.....so immature....what are gaining from this???? You will just end up alienating hundreds of other posters on ADVFN.

[monkey puzzle] 24/2/2010 10:19

Karl,

You are a prize idiot, read what the man said and stop it!

[karldinnel] 24/2/2010 10:10

Sorry geng. Monkey Puzzle started this on another thread that I frequent in order to trash it. I asked him not to do it otherwise I would do the same to one of the threads that he posts regularly on. I did that and now he seems to have extended his game over here.

All I can advise is that you filter him. I will not be playing such games here. If you look at posts from last Thursday onwards you will see that I only post good, useful info here...

I don't know what's wrong with Monkey Puzzle. I think he may have some kind of personality disorder...

[geng] 24/2/2010 10:06

Will you two children please FOAD

[monkey puzzle] 24/2/2010 10:05

Karl,

Every time you trash the ALM thread with your stupid thread clogging LOL I'll add one here. Of course you can stop this any time you like...and I will do the same.

[monkey puzzle] 24/2/2010 09:56

edited, point has been made

[monkey puzzle] 24/2/2010 09:55

edited, point has been made

[monkey puzzle] 24/2/2010 09:55

edited, point has been made.

[monkey puzzle] 24/2/2010 09:38

edited, point has been made

[monkey puzzle] 24/2/2010 09:38

edited, point has been made

[karldinnel] 24/2/2010 09:36

I'd advise holders here to filter Monkey Puzzle. He tried his best to de-ramp GKP, and it looks like he wants to do the same here too. He's probably gone short...

[monkey puzzle] 24/2/2010 09:10

edited, point has been made

[phil1969] 23/2/2010 21:26

Check out MERE website

You have the MERE BoD



Then you have 'The Manager'



The BoD are a token gesture. A handful of non-exec directors to oversea the running of the company and to maintain a legal obligation.

Regardless of company performance, MERE is set up in such a way that the 'real directors' get well paid.

It doesn't bother me but you can see motives behind certain commercial decisions when you understand the structure of the management & their remuneration.

It helps you figure out what is likely to be their next move.

To me it will be about hoarding cash until a 10% return can be made to shareholders. This maximises The Managers fee. Why pay out small divi's now and delay the possibility of paying a 10% divi & therefore maximise their fee.

The performance fee won't include NAV as this would cripple the company if they had to pay a cash fee of 20% of any NAV increase. Plus 20% of Divi's.

[tim00] 23/2/2010 20:34

Not sure what you mean here Phil. First, the Manager is entirely independent of the Directors. Second, Total Shareholder Return is likely to include the NAV as well as the dividend. At the moment, I think there is little chance of a performance fee being paid to the Manager. (I have wondered in the past whether the Total Shareholder Return is based on the initial NAV of about £6.75, in which case a performance fee won't be paid for many years.)

To address a point made by hombe, MERE has fairly long leases, low vacancy rates and low failure rates of tenants. Pressure on rents is thus not really an issue, and indeed rental income has been very solid to date. If they could find some new tenants for Europort, there could be a tremendous uplift to rental income and valuation on that property. Let's see if the Manager can earn their money!

[phil1969] 23/2/2010 20:05

Perhaps this sheds some light on the directors income from MERE


On 17 May 2007 the Company entered into a
Management and Investment Advisory Agreement with
Matrix Property Fund Management (Guernsey) Limited
(the "Manager"). Under this agreement the Manager is
responsible for advising the Group on the overall
management of the Group's investments and for
managing those investments in accordance with the
Group's investment objective and policy, subject to the
overall supervision of the Directors.

The Manager is entitled to a base fee and a performance
fee together with all reasonable expenses incurred in the
performance of its duties. The base fee, which is paid and
calculated quarterly, is equal to 0.6% of the Group's Net
Asset Value plus any borrowings of the Group.


But more importantly

The Manager is also entitled to receive an annual
performance fee, where Total Shareholder Return
exceeds an annual rate of 10% (the "hurdle"). Where the
hurdle is met, a performance fee will be payable in an
amount equal to 20% of any aggregate Total Shareholder
Return over and above the Hurdle. If a performance fee is
paid in respect of a performance period, the Hurdle in
subsequent periods shall be calculated using the highest
market price and capitalisation at the end of the
performance period which generated the last performance
fee.


So they really need to achieve a divi with a yield of over 10% before they are quids in.

So at market cap of full NAV they need to find £11-12m p.a. before its worth them paying up.

I don't think they would bother paying a dividend until they could get it up to this magic 10%, they are better off hoarding the cash until they can give shareholders a 10% return either by way of ordinary divi's or a special divi.

[phil1969] 23/2/2010 19:35

So where should this share price be?

May make comparisons to IERE (Understandably) and they are currently trading at 48% discount to there 31/12/09 NAV

MERE £1.52??

The are other commercial property investment stocks actually trading at a premium to their NAV, these are the ones that are still paying a divi. Due to low interest rates they offer an income with little risk.

Removing uncertainties from MERE and possible reinstating of the divi may see an market cap closer to NAV.

A reinstatement of a dividend yielding 5% of share price at full NAV would see a divi of 14.7p. This would cost MERE a mere £5.5M p.a. (pardon the pun)

Any suggestion of reinstatement by MERE would see the share price north of £2.50

I am slightly troubled by how few shares the directors hold (therefore no incentive to pay divi's). And how little they paid them selves last year. I couldn't live off the incomes they are allegedly paying themselves!

[sand dollar] 23/2/2010 19:08

Nothing new, but another example of the all important "sentiment factor" moving up, with cash losing money in real terms investors are starting to look at other asset classes to generate income.

The Sunday Telegraph highlighted Commercial Property as an option, where rental yields remain attractive following the falls in capital value of office space and factories during the recession. Nick Montgomery, manager of the St. James's Place Property funds, commented, "When property values fell, it was indiscriminate and this is continuing as values start to rise. With values now on the up, the fall in rent should not continue as pressure builds up for rental income to increase. Broadly speaking, normal service is starting to be resumed, with Property once again starting to be recognised as an asset class that is income-driven".

[sand dollar] 23/2/2010 18:31

I'm certainly not going to call tomorrow, oh if I must it will be up on the day.