SLF Realisation Share Discussion Threads

[chucko1] 31/3/2022 11:34

A lot has been written about SUPR on its own thread. The actual premium is bordering on irrelevant to me. I own copious amount of it (reduced the past 2 weeks) as joyfully as I won copious amounts (risk adjusted) of SLFX. One a meaningful premium and one a derisory discount.

They are each owned for entirely different reasons.

[chucko1] 31/3/2022 11:30

KCR has a bid/offer as wide as SLFR - that's really saying something.

[ctrader3] 31/3/2022 11:26

yep, but if we use SUPR.
TR one year ago plus 24%, not likely
to repeat that performance unless the share price falls
from here.

[williamcooper104] 31/3/2022 11:14

If you look at US REITs the REITs that consistently trade at premium valuations do better than those that trade at discounts - that's probably true this side of the pond - eg PHP/SGRO/BBOX/SUPR and DW/GPE relative to LAND/BLND/any retail REIT Premium valuation = cheap cost of equity and arbitrage over the returns from buying assets privately - the premium is an asset

[ctrader3] 31/3/2022 11:04

KCR Residential REIT PLC - residential-focused real estate investment trust - Net total assets increase to GBPB27.3 million in half-year to December 31 from GBP24.2 million year-on-year, though net asset value per share falls to 33.03p from 49.86p. Revenue in half-year rises to GBP604,583 from GBP475,407, and pretax loss narrows to GBP254,265 from GBP859,476. "KCR continues to work within a specific segment of rented residential that is in high demand, is confident that the UK residential rented property market is fundamentally under-supplied, and therefore that it is building a sustainable long term future for the company," it says.

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if we look at KCR from the list above, going to struggle with a market
cap of 27 million.

[ctrader3] 31/3/2022 11:03

one trust class where u can normally buy at a discount
and with patience turn a profit, property.
better with a decent yield just in case your analysis
is faulty.

[ctrader3] 31/3/2022 10:57

yep, details make a market, not for widows or orphans ?

[chucko1] 31/3/2022 10:50

Normally, but not always. Also, no differentiation is made here between illiquid equities, liquid equities, long-dated or short dated or high yield or senior debts.

These details REALLY matter.

[ctrader3] 31/3/2022 10:38

Trusts that trade at large discounts, normally do so for a good
reason. Sometimes the market is wrong but not often.

[ctrader3] 31/3/2022 10:20

Loan investments with a fair value of £35,450,272 (30 June 2021: £81,962,656) have been invested through SQN Ireland.

...........

so the Mexican assets are in the name of SQN Ireland, that's
why the receive the interest payments for forwarding on.

[chucko1] 31/3/2022 09:55

I think the meaning is that by the loan having been refinanced, SLF ought to have been repaid. They will not have refinanced an 8 year loan themselves, or at least this is very unlikely.

But who knows as no specific statement has been made other than the comment in the semi-annual report.

But that is par for the course for this lot.

[ctrader3] 31/3/2022 09:49

In particular look at the commentary on loan 49. It has a carrying value of £4.9mn (so 3.5pps) and is said to have been refinanced as of Feb 2022. It had a remaining life of some 8 years. And yet no comments made on this via RNS or whatever.

--------

8 year's. that's a long time to wait to receive your cash, guess it will have
to be sold on at a discount.

[gopher] 31/3/2022 09:03

Thanks - they don’t seem to have adjusted the fair value discount rates from last year, those Mexican leases are the opaque but agree with your analysis chucko, the C share Loans look sound enough.

[chucko1] 31/3/2022 08:25

Yup - that made me laugh. Both items!

[spectoacc] 31/3/2022 07:57

Thanks @chucko1.

Some outlook concerns on Ukraine/Russia, & inflation, but it still looks like a gift.

Had to chuckle at these tho:

" The Agent, SQN Capital Management LLC, has also recently been slow in passing cash due from the trust to the Company taking up to 8 weeks to pass payments through."

and

"There is a threat that the equipment under the security package could be damaged by disgruntled union employees in France. "

[ctrader3] 31/3/2022 07:29

Sector SSC5 = Max spread 5%

[ctrader3] 30/3/2022 11:09

Biogas made from farm waste could replace Russian fossil fuels in Germany


As Germany attempts to reduce its dependence on Russian gas, the strong fumes from manure and other organic waste on farms could act as an alternative energy source.

An hour's drive west of Berlin, a strong smell emanates from three large cylinders in the middle of a muddy field on Kaim's property, which is shared with 100 dairy cows.

Every day, tonnes of organic waste, mainly manure, corn and grass, is poured into these receptacles.

In a process called 'methanisation' fuelled by bacteria, the organic matter is transformed into gas.

This mini power plant supplies heating to about 20 homes in the village of Ribbeck, known for a pear tree whose praises the 19th century writer Theodor Fontane once sang in a classic poem.

Everything "comes 100 per cent from our farm", Kaim told AFP.


The farmer prides himself on "independent" energy production against the backdrop of the war in Ukraine, and calls on the state to "adopt simpler authorisation procedures" to help biogas become a bigger part of the mix in Germany.


The entire biogas sector is jumping at the chance to grow, driven by the current crisis, as Berlin looks to quickly curb its dependence on Moscow for energy.

Biogas, also known as renewable natural gas, is “renewableR21; in the sense that humans and animals will keep producing waste - but we don't want to encourage generating more waste for the sole purpose of creating more biogas.

[spectoacc] 21/3/2022 16:33

Cash finally in too - quite a lump :) See what the share price does next time it's a 10p return.

[2wild] 18/3/2022 20:22

Got my money in interactive investor trading and ISA accounts this Friday afternoon, keeping my powder dry for now.

[2wild] 18/3/2022 10:27

We should get the capital Returns in our brokerage accounts today or Monday. Is anybody planning to reinvest here.

[ctrader3] 18/3/2022 09:08

Credit Assumptions - AD Assets
The Board of the Company instructed KPMG to provide a fair value valuation of seven remaining AD assets as of 30 June 2021.
KPMG provided a range of valuations using discount rates that they observed on other transitions, including propriety KPMG data. For AD plants this ranged from 7.0%-10%. We have evenly distributed the probability of achieving the valuations provided to create a weighted average valuation.

It is noted that the Company has not factored in any of the upside potential referenced in KPMG’s reports.
The primary reason being previous strategies articulated by management of the AD plants in question, have either failed to materialise or not consistently yielded the assumed upsides.
For AD assets that are not currently under a formal sales process, an assumption of 1 year to complete a sale has been used. This is based on experience in the last 12 months of attempting to sell AD plants,
where the sales process has generally been subject to delays and has taken nearly 12 months to complete from initial conversations.

[spectoacc] 17/3/2022 09:41

If they've forward-sold energy which, for production reasons, has been difficult to supply, then higher energy prices = insolvency.

Not saying that's the case, but output tends to get hedged for the cashflow benefits.

I've asked the question many times in the past: are the AD loans performing? My impression was that they weren't - ie not paying KKVL's interest, despite supposedly being backed by subsidies. And that down to production issues, not power prices.

But not having held any KKVL for a long time, all from memory only.

The co don't seem to say much about the ADs, which after this length of time ought surely to have been sold, if there were buyers.


Edit - @chucko1, you'll know if the ADs are paying interest?

[wilwak] 17/3/2022 09:34

I can’t help wondering the effect on the sky high electricity prices on the value of the AD assets.

Simple logic would imply they are far more valuable and desirable now? Am I wrong?