Sigma Capital Share Discussion Threads

[riddlerone] 06/5/2017 13:18

Thanks Kooba

[kooba] 06/5/2017 12:40

Well they don't say much at this stage pending REIT IPO CorporateGeneral Financials Company Update - Forecasts withdrawnRevolutionising the model, launching PRS REITSigma is seeking to launch the UK's first Private-Rented Sector ("PRS") REIT raising £250m, including direct investment by the HCA. This will transform Sigma's model: providing capital to develop PRS homes with no risk to the timing or quantum of funding. This will also materially enhance the visibility of future earnings. There is scope to grow the REIT to secure additional funding. Some expected developments have been reserved in order to provide a material pipeline for the REIT – this will impact Sigma's performance in 2017. Due to the potential transformation, we withdraw our forecasts until the full details of the REIT have been confirmed.

[riddlerone] 06/5/2017 12:27

The Brokers note from NI&Singer is the read that I would like to see

[riddlerone] 04/5/2017 15:45

With you on that Hastings.£2M fees from the get go plus fees from Gatehouse/UK PRS sites plus profit on the Assets sold to the REIT plus fees on the Regeneration activities...sticking with SGM

[hastings] 04/5/2017 15:39

Given that Sigma will receive some nice fee income for managing the real estate investment trust then I'm happy to be holding here.Broker Singer says of the impending launch, "This is transformational in terms of the control over funding and the economic model. Supply of capital will be certain and aligned with shareholders objectives; making Sigma's earnings more visible".

[fidra] 04/5/2017 15:01

Seams interesting ,are we better in the shares or the ReIT?


Anyone want to answer that one? :-))

[riddlerone] 04/5/2017 14:54

The Investment Advisory Agreement provides that the Company
will pay to the Investment Adviser a fee (payable monthly in
arrears) calculated at the rate of:
(a) 1 per cent. per annum of the Adjusted Net Asset Value up to,
and including, £250 million

[riddlerone] 04/5/2017 14:44

"Immediately following First Admission, the REIT Group will acquire all of the shares in the special
purpose vehicle owning the site known as Mackets Lane for a price equal to £7.3 million"
All we need to find now from old info is how much we paid in total for the development

[busterdog2] 04/5/2017 12:06

It seems the way to go, but confirmation from someone more knowledgeable on the subject would be reassuring.

[riddlerone] 04/5/2017 11:09

Heres the link for the REIT that should come out later.This is not the proposal but just an advert with lots of info
hxxps://www.sigmacapital.co.uk/prs-reit/
So when the REIT lists they will forward purchase assets from SGM.
"Pipeline of approximately 2,535 new homes with a Total Cost of c.£375 million is already identified and contracted, including a seed portfolio of c.£72 million of assets either completed or under construction".
From the interims
"Self-funded PRS

The launch of our own portfolio of PRS assets marks a significant step in the Company's development. We expect this activity to generate return on capital of over 30%, thereby substantially enhancing the overall returns from our PRS platform".


So i wonder then if we sell to the REIT,make 20% profit,retain an interest then same again or am i wrong about the process?Anyone ideas on this

[riddlerone] 04/5/2017 08:25

hxxps://www.theprsreit.com/

[busterdog2] 30/4/2017 09:28

They have updated their website with 1270 homes now completed.

[hastings] 29/4/2017 18:02

"Expect to announce" is not quite the same as will announce.No doubt it won't be that much longer!

[olliemagern] 28/4/2017 10:23

Yes market closed monday 1st May, saying the results are out in April and then not publishing them is ridiculous.

[fidra] 28/4/2017 10:06

Was rather expecting the results today,as they did say "towards the end of April"in March!

[busterdog2] 26/4/2017 15:07

Invesco increased their holding by 1,971,889 shares which accounts for one of those trades from yesterday. I guess we'll find out who took the 2,170,00 and where they came from in due course.

[riddlerone] 25/4/2017 12:13

Interesting pair of trades gone through

[riddlerone] 24/4/2017 12:51

With the backing of the HCA and the establishment of the REIT you can see the case for just increasing your own PRS platform.Much higher profits achieved a lot quicker.
I think its all about the statement with the results that matters.Any negative comment on delays which we know they have experienced has to be countered by a really good outlook.Assets must be up to nearly 40p by now so downside looks limited short term to me.

[chrisdgb] 24/4/2017 12:34

Most people (not that many..!) seem nervous on the middle east funding...presumably reit sorts this..?

[olliemagern] 24/4/2017 11:16

John Laing JLG build schools, hospitals, wind farms and trains. Then sell a lot of the completed assets to the John Laing Investment Trust JLIF. As you say its a win/win with JLG getting accelerated very good growth. And JLIF get stable very good income and trade on an 18% premium to assets.
My question is, when the results come out this week do they fall on 3p earnings per share or do they rise on possible future years eps of 10p?

[riddlerone] 24/4/2017 09:37

We should get the results by the end of this week but my interest is on the REIT.Been looking at various REITs floated on LSE,AIM and they all seem to acquire assets that return 5-5.5%.As the Sigma assets return 7%+ then you would assume that when they sell the assets to the REIT they return a premium of 16/18% on their investment.You would also think that This must be a win win for Sigma as they can then get a decent return on their assets and retain a yield to return to shareholders and charge a management fee to boot.Anyone have any experience in this field and has any views.All IMHO NAI

[kooba] 30/3/2017 09:19

So they build the self funded using company money and HCA facility (£60m build currently) then they sell on to a REIT they manage for a suitable margin (10%?) rinse and repeat and expand the model...monetising on the build and bringing in a recurring management fee...sounds like a plan.Still would like to know what's going on with the partnerships which was the original model...all rather quiet...hopefully will have thorough update on all activities with results.All seems to be going well after the delays from end of last year and it is unlikely they will be any further slip ups with the full year after updates and they have obviously had the opportunity to fine tune today.Be interesting if they are on track for current year earnings forecasts (11.9p?) ...If they are and can present the 'new' model with self financing and how and when partnership revenues build should be looking at decent rerating imho.

[busterdog2] 29/3/2017 10:56

I see they updated their website with 1186 completed,1265 in process and 4620 in the pipeline. Lets hope the results show continued progress.