Rugby Est It Share Discussion Threads

[topvest] 01/5/2010 20:45

Not sure they will go to a discount. They may be on a lower yield, but they should still trade at/above book value. If not, happy to hold until 77p redemption in October 2012. Given that Rugby were down at 30p or so a year ago, that's a good turnaround.
So, as far as I see it. If they trade at book/small premium I may sell. If not, they are worth 77p in a couple of years.
Rugby are taking cash as they are under pressure to return cash to shareholders, again from Laxey.
Overall, a difficult decision. Cash/ZDP's seem the preferable route.

[skyship] 01/5/2010 18:45

Hi Topvest - It is certainly great to see another Zero on the Market; however I would expect them to go to a discount - see the Gross Redemption Yields on IERP (8.4%) & FPEZ (8.2%). I'll be a buyer, but will be waiting for them to drift to c.62p for a GRY of 8.47%.

Perhaps bettter to take the CASH.....

[topvest] 01/5/2010 17:26

Well, I've decided to take the ZDP shares.

At the moment, you get 63p cash, c60p if you take ordinary shares and 65p if you take the ZDP shares. Would have preferred to take the ordinary shares, but didn't really seem to make sense given the current price. 77p on the ZDP's in October 2012 looks a good deal. May even sell the ZDP's in the market if they sell at a premium and are listed. Many ZDP's are selling at a premium at the moment.

[topvest] 01/5/2010 16:45

Difficult to decide whether to take the cash, zdp shares or the ordinary shares isn't it?......Hmmmm decisions, decisions!

[purplebox] 22/4/2010 14:11

Well the formal offer has been published:



That does not make it any better - it's a poor offer!

[topvest] 17/4/2010 19:13

Yes, it's not a great deal; I prefer Rugby as an asset manager to ING! Nevertless, I think I will roll-forward my investment and take shares in the ING vehicle, unless the share price reduction means its cheaper to take cash and re-invest in the shares. At least they offer a reasonably good yield and an average to good quality property income trust to hold for a few years. This trust doesn't look as good as the F&C trusts for example, but worth holding I think.

[purplebox] 15/4/2010 21:50

Yes, IRET's results were at best 'average' - also, those taking the 1.206 IRET share option will miss the dividend declared today (Ex Div 5th May).

This offer is not very generous - in fact it's quite mean.

[topvest] 15/4/2010 21:38

I was a bit disappointed with the ING results today; their valuation movements to 55p this year have been very sluggish, even with the 3p dividend. Will need to look at more closely to decide which option I go for; tempted to go for eith the shares or ZDP offer though rather than the cash.

[cockneyrebel] 15/4/2010 15:15

decided to sell out at 62.5p. That's the second time I've sold this on bid news now - perhaps I'm too early again but think I can put the cash to use elsewhere and get as fast a return as any further bid.

Hope a higher bid comes in for you all.

CR

[purplebox] 15/4/2010 11:50

There is certainly scope for another bid - this one isn't very good.

Dispite the PR spin this is really about Terra/Laxey getting 77.0p value which would net them in the region of a 100% gain by Oct 2012.

Even with a higher bid somebody would still be getting a bargin as NAV is 79.0p based on a 31st December valuation.

The problem would be getting Terra/Laxey to accept say, 70.0p now - perhaps it would have to be higher.

Who would be interested?

[cockneyrebel] 15/4/2010 11:39

A hostile bid to come still?

At 70p they would be being taken out pretty cheaply.

CR

[purplebox] 15/4/2010 09:30

There's no timetable yet, but I'd imagine that it will take at least six weeks.

[badtime] 15/4/2010 09:25

Hmmm..ive read the offer document..but if i accept how quickly do i get the 63p?

TIA

[purplebox] 15/4/2010 09:10

It's not a very generous offer considering the revised NAV of 79.0p - they have to get 90% acceptance.

Need to think about this carefully - the ZDP option is really just for Terra/Laxey IMO, if accepting the real choice is between 1.206 IRET shares (currently 50.0p) or 63.0p cash.

[crawford] 15/4/2010 08:54

Buy some TCF.

[cockneyrebel] 15/4/2010 08:32

63p in cash it is then - a nice return over 2 days :-)

CR

[cockneyrebel] 13/4/2010 11:47

bid up a bit again today.

CR

[badtime] 08/4/2010 19:41

Yea thts what i thought...shud hear some news soon surely..downside limited one hopes in view of latest results...we shall c

[cockneyrebel] 08/4/2010 16:11

Interesting trades.

CR

[overmars] 01/4/2010 16:58

Oy Oy, who are these clowns with the spread bets ?

[purplebox] 30/3/2010 08:03

'Rugby Estates IT Bounces Back'

[purplebox] 30/3/2010 07:54

Final Results.



Highlights:

· Profit after tax £9.3 million (2008*: £20.1 million loss)

· Revenue profit £1.2 million (2008*: £1.2 million)

· Net asset value per share up 23% to 79p (2008*: 64p)

· Portfolio valued at £68.3 million (2008*: £60.3 million) -capital growth 14%

· Portfolio return of 22%, compared with IPD benchmark return of 3%

. REIT Plc ranked equivalent to 4th of 286 funds measured by IPD

· Contracted annual rental income £4.6 million

· Estimated rental value £5.1 million

· 30 new leases, lease renewals and rent reviews completed during the year

· Voids 9% at year end

Commenting on the results, Philip Kendall, Chairman, said:

"REIT Plc has significantly outperformed over the year delivering capital growth on its portfolio of 14%, a total portfolio return of 22% and growth in net assets per share of 23%. Portfolio performance was ranked equivalent to fourth out of its peer group of 268 funds for the year reflecting the quality of our portfolio and the ability of Rugby Asset Management, our Property Adviser, to successfully manage the assets through a challenging period.

"A strategic review by the Board concluded that a near term exit for shareholders should be explored in order to maximise value for shareholders. This conclusion was reached in light of the Group's overall lack of scale and the fact that the Company's shares continue to trade at a significant discount to net asset value."

"On 15 February 2010, your Board announced that it was in preliminary discussions with ING UK Real Estate Investment Trust Limited which may or may not lead to a formal offer being made to the shareholders of REIT Plc. These discussions have progressed and the Board expects to update shareholders as to their outcome shortly. At this stage however, there remains no certainty that any offer will be forthcoming, nor as to the terms on which any offer might be made."

So - the strategic review concluded that the shareholders will get a 'near term exit'.

IMO, IRET will announce a bid which will be endorsed by the BOD.

But NAV is now 79.0p (in line with expectations) so the 62.0p cash/65.0p shares that was trailed in the press last month now definitely seems too low.

[badtime] 26/3/2010 22:51

was tht a buy or crosstrade?