Regional Reit Share Discussion Threads

[skyship] 03/8/2018 12:41

Fenners - re-read my 339 above...

[beangrinder] 03/8/2018 12:36

Fenners. Per accounts note 24 the repayment of ZDP is £39.8m.

[fenners66] 03/8/2018 11:49

Thanks eeza

Referring to post 339 the zeros £40m + int were to be redeemed in Jan 2019

As issued at 100 but to be redeemed at 132.9 that means they have to find £53.16m

So there will presumably be no early redemption - so no actual cash saving i.e. by redeeming early.

There will be a comparative in the following years accounts that the saving on the initial £40m , but that is countered by 4.5% interest on the additional £10m borrowed so a net comparative of £350k a year.
Even that is assuming that the extra £3.16m is funded out of cash receipts rather than more borrowings.

So they got a loan at 4.5% which is not too bad - when they would have to have funded the £53m from somewhere.

However its going to cost £1m to raise so the "comparative interest cost " gain has 3 years worth wiped out by costs.

Overall I was hoping to see that the 4.5% was going to be a lower funding cost going forward - now I see that it's more or less neutral and was something they were forced to organise to pay off the zeros.

So its a boost to sentiment that they got it done - but really pretty neutral to future results.

[asmodeus] 03/8/2018 10:47

Fenners - are you suggesting that to pay £1m to save £800k p.a. is a good move or bad?

[eeza] 02/8/2018 22:28

See Skyship post 339 for zeros.

[fenners66] 02/8/2018 21:59

So they raised enough to pay off the zeros and some £10m to spare.
How long before the zeros were to be redeemed anyone?

Essentially paying £1m to save £800k per year (max 6 years).

[skyship] 02/8/2018 18:26

DavR0s - sorry, but you need to read back through the thread.

Read from 399 onwards, especially Specto's useful P. No.400. You will find much discussion about the Conygar tap, which had about 6.7m to go before the next lock-in.

We could be nearly there, so with the tap turned off, the cheap stock may soon no longer be available!

[davr0s] 02/8/2018 18:11

Why are you guys debating every big trade that goes through - it's a low beta REIT

[skyship] 02/8/2018 18:06

A total of 3.235m traded at 95p today. Must surely be at or near the end of the current CIC tap. Will try to top-up again @ 95p tomorrow...

[eeza] 02/8/2018 17:29

1.5m+ gone thro after close.

[eeza] 02/8/2018 12:21

Lol !!!!

Pulled back already.

[skyship] 02/8/2018 12:12

Another 600k trade @ 95p this morning. Now @ 95.5p and looking as though they might be breaking that 95p resistance; but then we've had other false dawns over the past 2months!

[eeza] 02/8/2018 07:12

Yes, they got approx 50% of the max they had allowed - 105m.

[spectoacc] 02/8/2018 06:38

Less than they wanted but much more than I expected them to get. Net positive.

[eeza] 01/8/2018 17:25

RNS
£50m x 4.5% Bonds.
Expenses £1m.

[skyship] 26/7/2018 17:29

It's the big trades you need to look out for - such as the 500k down @ 93p today - that was CIC for sure!

[eeza] 25/7/2018 14:53

Lots of small trades, reminiscent of an ST tip.

[nw99] 25/7/2018 13:44

How many CIC left to sell ?

[eeza] 25/7/2018 12:55

Decent volume so far today.
A few more out of CIC's hands.

[hindsight] 25/7/2018 10:47

Yes out of frying pan into fire springs to mind

[fenners66] 25/7/2018 10:28

Ok bought some more

[spectoacc] 25/7/2018 10:08

Lol. But wait till UKIP restart under Bannon's funding, splitting the Tory vote, & Corbyn gets in here. Might be grateful for Scottish exposure. :)

Edit - wee "jimmy" krankie surely

[skyship] 25/7/2018 09:52

Wirral - thnx for posting that link in yr 409 above. It is a really good article on both equity and bond.

As I've suggested before, I would like to see more disposals in Scotland - so really loved this amusing extract:

"The Scottish management are (wisely) intending to divest away from Scotland which is over-represented in the portfolio - ideally it should be underrepresented. The greater distance put between your assets and the virtue signalling Wee Willy Krankie the better."

[davr0s] 25/7/2018 09:04

Got my bond order in - not a difficult decision given I've got cash sitting around atm looking for a home

[spectoacc] 25/7/2018 07:37

Thanks @WirralOwl, there's nothing I'd disagree with in that FII article and it actually writes up the shares v well.

Only comment I'd make is the point that the current weighted avg debt is 3.28%, yet this bond is 4.5% (accepting that it's replacing the more expensive Zeros, potentially, maybe. But why not use the recent disposal proceeds for that).

Some mention of the CIC overhang would have been handy but hopefully that article will encourage others (certainly not me!) to buy the Retail Bond.