Public Services Properties Share Discussion Threads

[woodcot] 17/2/2012 20:10

I would like to hear some news reference reconstruction and what the management refer to as creating shareholder value. I'm sure that they will be working to max any value for shareholders!

[johnroger] 17/2/2012 20:06

UK-Analyst comment

Shore Capital thinks now is the time to revisit Public Service Properties Investment (PSPI), placing a "buy" recommendation on the shares. The broker views the firm's update to the market in December on its ongoing strategic review as positive and notes that the group's share price is some way off its net asset value of 118.4p per share. With discounts narrowing elsewhere Shore wonders whether an investment in the company would offer 'a very interesting and timely opportunity'. The shares crept 3.25p higher to 60.5p.

[fenners66] 17/2/2012 09:45

Good to see the share price turning the corner.
Have bought higher but the uncertainty around this company has led me to hold off averaging down.

[woodcot] 10/2/2012 16:47

Interesting that approx. 2.74 million shares were traded today and there just about all buys according to ADVFN.

Will we hear some news about the restructuring of the company soon, my guess is yes!

[adam] 08/2/2012 11:08

Thanks for the heads up. Interesting article because it has some detail on what the banks are likely looking for

"The amount of debt we raise will be somewhere between five and seven times our [2012] earnings – probably somewhere in the middle," Mr Calveley said. "Inevitably, there will be a gap between the debt we can raise and the debt we need to refinance. How much the gap will be is determined by which debt solution we choose."

Four Seasons recorded earnings before interest, tax, depreciation and amortisation of about £100m in 2011, Mr Calveley said, and expects that to rise to £110m this year – in part owing to the takeover of the homes formerly run by Southern Cross.


Helpfully, PSPI have spelt out what their cash-flow before and after interest is a few weeks ago



In the year to 31 December 2010, the Group's investments generated revenues of approximately £19 million and cash flow of £12 million after interest expense1, or approximately 12.0p per share, of which approximately 8.4p is from the UK portfolio and approximately 3.6p from the international portfolio2.

6 x EBITDA for PSPI in 2010 then would be comfortable inside their senior debt of £83m. If they make some disposals too and pay down further and/or suspend the dividend then it should further enhance their negotiating position.

[ptolemy] 08/2/2012 09:20

Financial Times: Four Seasons, the UK's largest care-home operator, will seek to raise up to £230 million in new equity from existing shareholders and private equity groups, as it tries to refinance £780 million in debt before a September deadline.

[goliard] 06/2/2012 14:38

I agree with the above posts. The big question is EC which is where you are really investing if you buy PSPI due to its lack of diversification and reliance on a single business model. Nursing home are not exactly flavour of the month at present!

[adam] 06/2/2012 10:51

I suspect they will cut the dividend. It makes sense to cut it completely until the debt is renegotiated (due Sep 2012). The banks will want to decrease the LTV to give a better rate. If they sell the US post offices then there should be a few £m to come back in equity. They had a rent roll of $2.3m and a senior loan of $19m. It was $23m but was then partially refinanced with Elliott and i believe that was then repaid after the placing? Should be valued at $25m -> $30m+. However the recent refinance rate was 4.75% (from memory) so produces cash flow of $1.3m after interest. A good cash yield. Ironically many of the buildings worth more if not Post Offices. Then there is the German/Swiss property....

As long as EC remains stable, and we are told they got more cash from the parent in December, then cash flows into PSPI are highly attractive and the banks will be happier to lend (read lower interest rate) as long as the dividend is cut and the cash used to pay down debt. If you were a bank - you'd think the same... Or just sell the company....

[gingerplant] 06/2/2012 10:17

AFAICS PSPI itself is reasonably secure. The problems wold come if European Care Group ran into trouble - then PSPI would face an enormous strategic problem???

[masurenguy] 06/2/2012 10:10

How secure is the yield here - are they likely to pay a 4.5p year end dividend to match last years 7p total ?

[adam] 03/2/2012 11:16

kimboy2

From whence the following info?

"On the EC front it looks as though they were re-financed with £13m just before christmas by Esquire"

[kimboy2] 03/2/2012 10:44

No news either on the USI re-financing/flotation which may, or may not, be connected with EC.

On the EC front it looks as though they were re-financed with £13m just before christmas by Esquire.

I expect that they had potential purchasers in the pipeline for the non UK parts when they announced the strategic review. It will take time to sort out financing if nothing else.

I think they thought deals could be fairly close which is why they mentioned the dividend.

Given that EC has been re-financed and they are looking to realise assets I would have thought risk/reward looks good.

[davidosh] 03/2/2012 10:34

I have asked for the chairman to ring me three times in the past few months but never get a call back. These type of boards are completely out of contact with shareholders....Where is their contact information on the RNS ? What are we actually paying for if they hide away and also have Agms behind closed doors in offshore locations ? Almost money for old rope !

The asset manager is very good IMO but there does need to be more communication directly with the wider base of shareholders and not just the big holders with close links.

[kramch] 03/2/2012 09:55

And why does the asset manager need £2m? I think they are tied in with all the cross-shareholdings here?

Isn't it time we heard about their plans to "unlock shareholder value"

K.

[goliard] 03/2/2012 09:07

Bigger question might be why they need 8 non-execs? 3 would be ample.

[scburbs] 03/2/2012 08:31

Masurenguy,

I believe that the directors remuneration is low because so much is outsourced to the asset manager such that the board are all non-execs. The asset manager is paid c.£1.5-2m p.a.(1.5% NAV).

[masurenguy] 02/2/2012 20:49

Glad to see that the collective remuneration of the 8 directors was only £170K last year and that it would appear that they primarily obtain their return from dividends.

[goliard] 27/1/2012 16:03

Selling certainly gathering a bit of momentum after a fairly stable period. Interesting to see if we get any corporate news soon.

[fenners66] 25/1/2012 11:30

Gong down again. Reasons?

[omerta] 28/12/2011 18:57

No ..........likely 'bear closing'

[fenners66] 28/12/2011 16:06

Happy New Year All.
I'd prefer the use of the word pillaged than raped, that seems an excessive expression given its sensitive nature (for some, and not me!).
Anyway a reasonable rise today allbeit as I write have not checked the volume.
Someone thinking they know something?