My Space no rent being paid ay all. How were they allowed to get away with it? I'm expecting a certain amount of kitchen sinking. The new manager will want to start from the lowest possible base, and subsequently prove how good they are without actually having to do anything. A small tick up in the discount rate would do the trick. |
Probably my space related at a guess . |
corporate activity? |
I notice the RNS today; results not being announced until 24th March. Given that they would normally have been ExDiv yesterday, with payment around 28th March, then this must mean that the dividend is to be paid late this quarter. I hope this is not a red flag that may indicate a cut to, or even suspension of the dividend? Anyone else have similar thoughts or fears in this?Best wishesNSB |
Alas you're probably right Would be very annoying to lose this |
Care Reit is being acquired at around its asset value.It was trading at around 30% discount to its asset value. SOHO is not a basket case. Sooner or later it will be a takeover target itself. Such discounts don't persist for ever. In the meantime it should continue to pay a healthy dividend. |
Is this such a basket case that CARE being taken out has almost no corresponding impact? |
Care Reit taken out at a 32% premium |
Further to the announcement on 3 February 2025, the Company confirms that the company voluntary arrangement ("CVA") proposal of My Space Housing Solutions ("My Space") was approved by a creditor vote on 7 March 2025.
The Company's investment manager Atrato Partners Limited ("Atrato") successfully negotiated an option agreement (the "Option") with My Space ahead of the CVA process. This Option entered into by the Company enables it to transfer all My Space leases within a 12-month period following the completion of the CVA challenge period.
Atrato is already in advanced discussions with alternative Approved Providers and will confirm details of the proposed transfers in due course. Atrato is also actively working with My Space to ensure there is no disruption to residents during this period. |
Which are SOHO biggest peers in the UK market, both listed and not listed corps? |
Results and div notice due soon? |
Myspace is 5% of the assets by revenue, 21 / 493 and irrelevant to assets by NAV. So at risk is rent for perhaps half a year of 5%. That isn't really significant. However it would be wise to assume credit losses are a part of the business model so assuming 95% of income would account for that. NAV will look after itself over time, so a cash flow statement that carries within it 5% of rents unpaid gives a realistic perspective of the amounts available for dividends.
I have work to do on the debts attached to assets; are they amortising or interest only. Though with equity at 2/3 of assets it is a minor issue. I need to know what is provisioned for more significant works. Internals are covered by the lessee. so it is the bigger ticket items, of which replacement windows and repointing would be the top items. Significant roofing costs well beyond my investment horizon. |
BLND is on leas if a discount, but it's still on a c35% discount CLI and RGL are on wider discounts than SOHO So the discount itself isn't reason enough to be cautious The balance sheet is excellent The share price hasn't recovered from the fall out over HOME reit CVA are a pain; but they don't necessarily take that long to get through c11x FFO on low leverage with little beta to the wider economy |
william cooper
It`s the CVA that MYSPACE wishes to do . these can get very messy .
Discount to NAV is massive !
do you think it is because all of the Market experts have missed something or do you think that they believe that those properties will fetch nowhere near that , if they have to be sold ? |
loglorry
My Space is an agency . SOHO owns the properties and rents them to Myspace , Myspace gets all of it`s money off the Government . Every tenant with MYSPACE is on the dole .
This is not specific to SOHO and Myspace , it is how it works with every single housing provider and Agency .
MYSPACE , YMCA, FRAMEWORK, SHELTER ,CORNERHOUSE, NACRO, etc etc etc .
They all work to the same script |
From the last RNS : "The Company has 34 properties let to My Space. As cited in the 21 November 2024 announcement, My Space has not paid any rent or other sums due since June 2024 in respect of those properties. "
It literally says My Space were to pay SOHO rents rather than collecting them from the local authority or tenant (which is what I think you mean by HMO). There's also a nice flow diagram of how it all works on their presentations.
SOHO own the properties we know this because they have secured debt against them.
Please short as many as you can. |
The MySpace issue is a long standing issue and is well priced into the share price The balance sheet is sound, the divi covered and high plus the discount to NAV is to far of 50% There's better shorts about |
I was going to start a drip feed into this but I may short soon ?
Voluntary arrangements can take an very long time in the courts to sort out. could be a drag on company performance ?? |
Soho make no mention that the my space properties are now with another provider .
They said they are working with Myspace to try and ensure a smooth transition .
I have a little knowledge of how Social housing and emergency accommodation works .
The rent payment is completely separate from services payments .
Rent for emergency accommodation used to be 260 pound per week per room . Any additional services required by vulnerable tenants are a completely different payment .
anybody who cant make a HMO pay must be corrupt . |
Gilt yields and the orange man Not been great for most REITs |
Disappointing start to 2025 under the new management and share price below 60p. Hoping for better but it could be a fools errand. |
Assuming the My Space properties are now managed properly and do provide a rental stream under the new manager won't this now increase divi cover?
That's the bit I was a little unsure of. |
That's it - just as with care homes years ago - the trick is to say that the income is government backed - which is true - but that just means your tenant won't have a bad debt - doesn't mean you won't get paid your rent as you're taking operating risk on your tenant being able to run the services and pay you your rent Soho isn't a total fraud like HOME but it's still had a few problems |
I'm not 100% sure but I think Gov paid MySpace to provide housing and related services. From that MySpace pay rents to SOHO. Apparently MySpace couldn't afford the rent after supplying the services so it all collapsed. I don't think SOHO got paid rent directly from the Gov otherwise obviously SOHO would just sue HMG for what they are owed. Appols if this is incorrect but I think it's close.
The divi is covered without MySpace and the properties have been moved to a new manager. |
MySpace is in administration, hardly any surprises here but where did the money go? |
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