R.e.a Hlds 9%pf Discussion Threads

[jaf111] 03/1/2023 15:23

Paid first thing with II

[rahosi] 03/1/2023 11:11

Not yet credited in XO

[cwa1] 03/1/2023 10:35

In at Youinvest, not in iDealing yet but expect it later today

[eithin] 03/1/2023 10:26

CS now in account.

[eithin] 03/1/2023 09:52

Anyone got paid yet? None CS.

[russman] 01/12/2022 17:04

Worth Par plus 7p arrears to me.

[hpcg] 01/12/2022 14:04

(record date is tomorrow)

If investors are capping where the Fed goes then these are worth more, and that is what the price today suggests.

[jaf111] 01/12/2022 10:40

Xd is (was) today

[ilad60] 01/12/2022 10:38

the directors have declared that 10p per share of the arrears of preference dividend, together with the semi-annual dividend of 4.5p per share falling due on 31 December 2022 in respect of the half year ending on that date (together totalling 14.5p per share), will be paid on 31 December 2022 to holders of preference shares registered at the close of business on 2 December 2022.


ex dividend date is tomorrow
so why minus 10% today

[my retirement fund] 01/12/2022 09:01

Anything under 82 is high risk for me. Need to be paid for risk. 75p is 12%, add to 7p gives 82p

[jaf111] 01/12/2022 08:16

Indeed they were……107p sold rather a bonus!!!!
So what is a fair price now with “only” 7p of arrears?????

[cwa1] 01/12/2022 08:09

Market makers napping this morning :-)

[russman] 26/11/2022 08:21

The capital structure needs to be refined quicker.
The "associate" investments need to be recovered to pay down their debt.

[hpcg] 25/11/2022 09:03

The advantage of where we are in the capital structure is that we can afford to wait. If it takes 20 years of slow improvement in the capital structure for the ords to see any return then so be it, but staggering on is fine by us. It is inflation which is the risk in my opinion, but that also makes the pref debt less significant for the company going forward.

Decent CPO prices look secure for at least 2 years, and taxation will limit any capacity expansion in Indonesia. Investment capital should make tangible incremental benefits to productivity and financial performance.

[my retirement fund] 25/11/2022 08:50

I think I would prefer the risk with something like the IPF 12% bonds, not only would I see them as safer than this, but you get a sensible coupon for the risk!

I would have thought given the capital structure here, people would actually understand the risk, it only takes a bad period of weather or a slow down in demand and/or price fall and your knackered. You would imagine once bitten twice shy! Peoples memory's can be very short I guess.

[briggs1209] 25/11/2022 08:19

I think the ords are not something I would touch. The debt is too great and just won't go away.

But here in the prefs it is a bit better. Psychologically trading above par matters, as does a yield of 10%. I can't see either of them being breached untill the palm oil price crashes again.

Best guess here would be the price climbs next week to about 110p then drops back 100p on ex-div date. The spread means you can't really trade it but these prefs look worth the risk for the next year.

[tradertrev] 24/11/2022 16:17

No advice at all, but the way I look at it, you deduct the upcoming coupon (full 14.5p as you are getting this back almost immediately) plus the remaining 7p arrears from the share price, and then calculate your yield based on the effective net price and 9p pa dividends.
So based on current mid price of 107p your forward yield is 9/[107-14.5-7] = 10.5%
You then have to decide if a 10.5% yield is sufficiently attractive to buy or keep holding the shares.
Personally I think it is.

[hpcg] 24/11/2022 09:07

I'm not tempted to buy now as I have sufficient and I suspect there is better value once it trades ex dividend. On today's price it should trade at about 90p, so the question is if that is reasonable value. Thereafter what is the appropriate resting price? Is it 83p? That is a 10.8% yield. That probably isn't far off, especially in a higher inflation regime. 12% would be 75p, which is near enough 1 year of income difference.

(The debt at half year was $184, a combination of GBP, USD and rupiah. With the volatility of currency markets this year trying to makr the debt level in any one currency is tricky to say the least. The fact remains it is much larger than equity however it is diced.)

[stemis] 24/11/2022 08:32

The problem surely is that the company has net debt's of £184m compared to a half year profit of £11.9m from which it has to pay £3.2m in preference divs and is reliant on a volatile commodity pricing (and we know that palm oil prices have weakened since H1). Under such circumstances, is a yield of 9.6% (based on a share price of 94p - i.e. current 104p less the 10p arrears) cheap? I like a dividend as much as the next man but not really tempted at this level...

[hpcg] 24/11/2022 08:16

I'm intrigued by where price goes by next Wednesday, and where it drops to on Thursday. That it can pay off arrears suggests it will have no trouble paying paying just the standard level. I know the repayment of loans is a one off but those write-downs were as much as anything responsible for the deficit in the first place. What price a moderate risk 9p dividend over the long term? How to price the remaining arrears, which presumably we won't see for another 12 months. So much depends on the discount rate used, and that is not easy to pick.

[cwa1] 24/11/2022 07:36

Dividend in respect of 9 per cent cumulative preference shares of £1 (the “preference shares”)



In the company's half yearly report for the six months ended 30 June 2022 published on 22 September 2022, the directors stated their intention that, in the absence of any unforeseen adverse circumstances, 10p per share of the cumulative arrears of preference dividend (which currently amount to 17p per share) would be paid on 31 December 2022, together with the semi-annual preference dividend arising on that date.



In line with that intention, the directors have declared that 10p per share of the arrears of preference dividend, together with the semi-annual dividend of 4.5p per share falling due on 31 December 2022 in respect of the half year ending on that date (together totalling 14.5p per share), will be paid on 31 December 2022 to holders of preference shares registered at the close of business on 2 December 2022.

[cwa1] 23/11/2022 18:40

XD is 1/12 this time

[russman] 23/11/2022 17:24

pref xd 25/11 last year.

[cwa1] 23/11/2022 08:25

Took a few at 103p yesterday.

Rationale being that IF-and it's quite a big IF obviously-all goes according to the grand master plan we should go XD for 10p arrears + 4.5p normal dividend soon(possibly 1/12?). Then next year we should get a further 7p of arrears plus the normal 9p yearly dividend. That gives a chunky 30.5p back in dividends from the original purchase price of 103p in fairly short order. Of course, that could all go to pot and any number of things could upset the apple cart :-)

103p-30.5p = 72.5p, all other things being equal, giving an ongoing 12.4p yield from this pref. Rough and utterly crude calculation I know-but IF things go well that might look attractive-or is it just about right for this unpredictable counter?

PS: The only XD date I've actually seen in writing anywhere is 1/12, it would be nice to see it in writing from the company-have I missed it somewhere?