Matrix European Real Estate Share Discussion Threads

[monkey puzzle] 27/2/2010 18:48

affc21 - 21 Jan'10 - 09:30 - 1237 of 1483


I see Karl has thrown his toys out of the cot again.

[monkey puzzle] 27/2/2010 18:45

karldinnel - 20 Jan'10 - 22:53 - 1231 of 1480

That's it!

I said this on the IERE thread the other day when I posted the contents of the Liberum research note there. People never seem to appreciate my passing on useful data and only ever knock me. Go stuff yourselves. I will be a long while before I post on ADVFN again.

The dark forces who want to prevent PIs sharing information have won another little victory...

[tim00] 27/2/2010 18:45

A75, you're right about the IZD banking covenants being tested again in June, but I don't think that's an issue - assuming MERE is allowed to pay down the bank loan from free cash on its balance sheet. MERE has plenty of cash to defend the IZD covenants against any reasonable fall in property values. What it can't do is defend both the IZD 65% LTV and LBG 75% LTV limits with its existing cash reserves should property values fall a further 5-10% over any time frame. You may well be right that the MERE share price would fall if the IZD transaction failed. But it has to be remembered that IZD is a secure, high yielding asset (hence why Benko wants it) and there is a good case to be made that MERE would be better off without selling IZD (sommet argued that, on balance I prefer to sell it since it reduces risks of a fire sale of assets in a worst case scenario).

[monkey puzzle] 27/2/2010 18:40

If you have any lingering doubts go and read the ALM thread and you will see exactly what kind of a nutter Karldinnel really is.

[monkey puzzle] 27/2/2010 18:37

No Phil but I am sick and tired of Karldinnel thinking he can get away with trashing me on the ALM thread day in and day out. I have offered him the chance to stop this loads of times now and he just won't do it. Until he does, I will continue to post on here, simple as that. I just hope for your sake he doesn't go loopy on you one day....but watch out because he probably will and then you will know how it feels.

[phil1969] 27/2/2010 18:34

Get a life Monkey Puzzle, you need serious help. Do you butt into other peoples conversations with pointless and old news when your collecting your benefits or at the checkout at Aldi?

Have some manners

FILTERED

[monkey puzzle] 27/2/2010 18:26

Yet another masterclass in investing...NOT!

Still underwater on these then....

karldinnel - 14 Sep'09 - 08:58 - 218 of 238

Yes. I've been in this for a while, and loved collecting 7p per year (which represents my main profit BTW since I got in at various points between 30p and 40p). However, the cut in divi seems to have settled investors; I think some were worried it would be cut completely but 4p seems a sensible compromise so that the firm can conserve cash and pay down debt while still reward holders with a decent income.

eeza - 14 Sep'09 - 09:04 - 219 of 238

The cut in Div isn't cast in stone. Didn't materialise at the last IMS as mooted. Maybe won't at the next.

karldinnel - 14 Sep'09 - 10:55 - 220 of 238

Sorry. My mistake. I could have sworn they cut it here. Must have been one of my other shares that cut. I think I'm losing it big time... ;)

wskill. where did you get the 4p figure from?

Still, the continuation of 1.75p per share every quarter is great!!

[karldinnel] 27/2/2010 11:19

Hi Tim. I know that MERE is just a portfolio of properties but Matrix Group, the firm behind it, is a proper property company. All I'm saying is that if Benko is looking at London, maybe it is a good idea for him to stay on good terms with Matrix as I am sure these sorts of fellows get investment ideas and other useful info off of each other all the time.

[a75] 27/2/2010 09:31

thanks Tim00 and Karl

good stuff this week ive just got to reading - getting the heads up on a confirmed izd sale seems the only way we will get to 1.80+ quickly. otherwise nothings changed unless ive missed something significant on sector sentiment or the results?

whats comforting is that the other scenario Tim00 has looked at where the sale doesnt go through seems to give us a floor but i reckon we wld be down at 80p again.the extra 35p we have now is purely based on us getting near an IZD close. or are the results a bit better than we thought also?

theres a june date on a new LTV right?

thats when your 5-10% head room (on an LTV of 75%) in the event of no IZD sale comes in Tim00?

[asmodeus] 27/2/2010 08:28

Monkey Puzzle - filtered.

[tim00] 27/2/2010 08:13

Note Karl that MERE is just a portfolio of commercial property buildings, it has no staff to help Benko. All management functions are outsourced to independent consultants and professionals. Benko though is certainly a dynamic young man!

[tim00] 27/2/2010 08:09

Having studied the LBG refinancing agreement, it's been very skillfully managed. The LTV covenant only becomes troublesome once the 75% limit is approached, and the current ratio of 71.7% provides sufficient headroom given that surplus cash can be used to reduce the LTV. The IZD loan can be paid down from existing cash balances held within the IZD Propco to stay within the 65% upper limit of the LTV. All in all, a failure of the IZD sale to complete would not necessitate any panic measures to stay within loan covenants of either IZD or LBG, but it would make the company vulnerable to further downward movements in property valuations of around 5-10%.

[karldinnel] 26/2/2010 23:45

I see that Benko is looking to invest in London now. I wonder if this will have any bearing on the IZD Tower purchase. If he plays fair with Matrix, perhaps they'll give him a hand...

[karldinnel] 26/2/2010 22:33

Good idea... I would do the same, but he seems to have a vindictive streak and has targeted me after I pointed out that most of his "tips" are actually ramps, so I need to check what lies he is posting about me. He also seems to think he is at "war" with me, which is somewhat bizarre, so if I were you I would never criticize him directly because he will stalk you all over ADVFN.

I expect that he has a lot of time on his hands in whatever bedsit it is he resides in up north. Probably can't afford to go out because if his tips are anything to go by he must be just relying on his dole money by now. LOL!!

[chinahere] 26/2/2010 22:32

Yes I haven't seen what Monkey Puzzle said because I filtered him a while ago.

[karldinnel] 26/2/2010 22:19

I see my post rattled you somewhat, MP. LOL. If people want to see what Monkey Puzzle's true nature is like, I advise you check out the PPA thread. The guy is a ramper, and not to be trusted.

The fact that he insists that I first bought into MERE when they were £6 per share just shows what a liar he is. I hadn't even heard of MERE until midway through last year (you can check to see when I first posted here). My first purchase was at under 50p...

Also, I've never seen any real insight posted by Monkey Puzzle or research conducted by him that has helped people on ADVFN make money. Only things I have seen are him ramping ALM on the GKP thread at the same time he was advising people to get out of GKP at 30p!!! Ignore anything he posts is my advice!

[tim00] 26/2/2010 19:26

I'm going to start thinking this weekend about the implications for MERE should the IZD sale not complete for any reason: how robust would MERE be to that eventuality? If I conclude MERE would not be too badly affected, then it's difficult to see any reason why the share price should not rise substantially.

[tim00] 26/2/2010 19:16

Karl,

I think you may be interested in the following figures, relating to how I believe MERE derives the EUR 60 million cash surplus from the IZD sale. The figures can be found in Note 30 to the Accounts, they just need to be rearranged.

Cash price of IZD = EUR 201.4 mn = £179.2 mn
Cash held within IZD Propco = EUR 12.9 mn = £11.4 mn
Cash Value of Propco = EUR 214.3 mn = £190.6mn
Less loan break fee = EUR 6 mn = £ 5.3 mn
Less IZD loan = EUR 148.5 mn = £132.1 mn
Equals cash surplus = EUR 60 mn = £ 53 mn

It follows of course that the sale price of IZD appears to be EUR 201.4 mn.

[tim00] 26/2/2010 09:12

Agree with you about reducing professional fees etc, and the need to market Europort. The company has stated reducing voids there is a priority.

[tim00] 26/2/2010 09:08

kramch, the gross rent from IZD is on p9 of the Report, £17.1 mn or EUR 19 mn. From that has to be deducted operating expenses, which for the portfolio were 20% of gross rents. That suggests net rents of EUR 15 mn approx. The figures I gave above on rental income post IZD used this figure.

[kramch] 26/2/2010 08:22

Tim00,

Thanks for the analyses.
I was going to call MERE but if you are speaking to them could you ask what the current rent is on IZD, I think they may have published it in the past but I have not been a holder that long, and I can't see it.
If they won't give it to you could you say that when they announce the completion of the sale they should advise the market what is the fall in total rents and the fall in associated costs, as these will be significant to the company.

I reckon they still have problems at Europark (I see Sirius RE are seeing tenants leaving their German trading estates)
Also MERE and their advisers need to reduce their fixed costs in line with the new level of rents if we are to see real benefits on the bottom line. Thanks, K.

[tim00] 26/2/2010 06:57

The LBG definition of the LTV ratio is (debt-free cash)/portfolio valuation. At end December 2009 this ws 68%. If IZD is sold, the ratio falls to 51%, confirming that MERE will have a good deal of spare cash.

The LBG refinancing agreements says EUR 35 mn will probably be used to repay LBG debt. This would take the ratio to 58%, ignoring the rest of the IZD cash proceeds (circa EUR 25 mn) which in theory could be used to acquire assets, or provide reserves against any further falls in property valuations. This means that the company post IZD sale is very secure.

I'm interested to know what the new interest rate is on the LBG debt (ie post hedge). I'm going to phone the company today to try and find out.