Summit Properties Share Discussion Threads

[phbatbjco] 17/1/2021 12:06

That's good - I'm happy to join in but my holding is somewhat more modest at under 10000 but it forms part of my diversified SIPP portfolio. Additionally, it's the principle involved and I'm quite happy to throw in my expertise and if necessary become a pain in the butt to this company! We will have to devise a plan on how to contact each other if necessary. ATB Phil

[bowerdean] 17/1/2021 10:08

Many thanks for your reply. I speak for just over 25,000 shares over 3 accounts having successfully tendered what I was allowed to last year. I am an ex broker who supported the company from Day 1 and feel badly let down. One of my ex colleagues who I think speaks for more than 100,000 shares has also tried to approach the company without success. Now that you have joined the party, so to speak, I am going to get in touch with him next week and suggest we make a further concerted effort. I will comment again when I have spoken to him.
One additional reason why I need to do something soon is that one of my 3 account holders has just died and as an executor of her estate I’m not minded to sell out at many times below NAV without a fight!

[phbatbjco] 17/1/2021 08:48

Many thanks for taking the time to reply. You appear to be in a very similar circumstance to myself. In August 2020 I also contacted Tom Lancaster-King and having spoken to him I thought that although he was a perfectly nice and polite chap he was pretty ineffectual. His reply to me was as follows:-

"Thank you for your telephone call this afternoon. I am replying to your enquiry in our capacity as Company Secretary to Summit Properties Limited.

As you are aware the Company recently delisted from AIM. Details of the delisting and tender offer including shareholder circulars can be found on our website at hxxps://www.summit-properties.com/news.html. Any news items released by the Company shall be posted to the website.

At this time I can inform you that the Company intends to publish its Q2 2020 Key Performance Indicators (“KPIs”) by the end of August. These will be published on the Company’s website and via the Luxembourg stock exchange.

Furthermore, we anticipate the release of the Company’s half-yearly report and accounts in September 2020. As with the KPIs these will be released via the Company’s website and Luxembourg exchange.

In addition, we will shortly be giving notice to shareholders of the 2020 annual general meeting.

The Company also publishes its news releases via the Luxembourg stock exchange, on which its corporate bonds are listed, which may be of interest to you. Here is the link to the Company's page on the Luxembourg exchange website at hxxps://www.bourse.lu/issuer/SummitProp/88008.

You mentioned that you have viewed the Asset Match website. As discussed, the buy/offer prices displayed here do not reflect the net asset value of shares in the Company. Please refer to the forthcoming publications of the KPIs and half-year report for further information.

Should you have any specific questions, please do not hesitate to contact me directly.

Kind regards,
Tom"

Rather embarrassingly, I am a chartered accountant and I run my own SIPP and I’m usually very much on the ball. But as I say due to family circumstances - a serious illness – I missed the deadline and the significance of then becoming stuck where we are.

I’m not sure where we stand as minority shareholders here. But given that my holding is worth a few thousand I’m quite happy to take up the cudgels if necessary.

My main reason for contacting Tom Lancaster – King was because I was having difficulty trying to contact the directors of the company who seem to have been remarkably silent and uncontactable. I wanted to ask them what their plans were for the company and also how they were proposing to deal with the minority shareholders. In a normal UK situation, minority shareholders who have not accepted an offer are bought out at the highest price at which the offer eventually took place. However I’m not sure that this company is dealt with under UK company law. There is also legislation in force to stop minority shareholders being oppressed.

Anyway, not sure how the minority shareholders can get together to push our case. Also, not sure how for instance you and I can make contact if we wish to as there isn't a private messaging service here as far as I know.

Once again many thanks for taking the time to reply.

[bowerdean] 16/1/2021 15:56

Correction to previous post. His correct email is [e-mail]

[bowerdean] 16/1/2021 14:05

I am in the same position and following the Tender offer in March last year and the subsequent buying in the market by Liberum on behalf of the majority shareholder, I was alerted by Liberum that they were about to buy a further tranche of shares, presumably to mop up all minority shareholders and to have my order ready. The order never materialised or was pulled due to market conditions ( the coronavirus pandemic was just beginning to send markets sharply lower). Like you I have seen the price trade recently at 30p compared to what I think is a current NAV of about 2.08 Euros ( see their Q3 unaudited figures to 30/9/20.
I suggest you email Tom [e-mail] who are the company secretaries.
I have spoken to him and emailed him to tell him how I thought the minority holders had been badly let down and had a polite reply back saying that he would pass on my comments to the Board and that they would be in touch. That was on 8th December and nobody has been in touch, but the more people who contact him the better, I would think.

[phbatbjco] 12/1/2021 23:20

Due to family circumstances, I missed out on accepting the offer to take out the minorities and delist. I'm now stuck with a few '000 of these in my SIPP. I've loooked on Asset Match and they seem to trade at about 30p -50p whereas the NAV is way in excess of this. Are these shares worthless basically as a small minority holding or what? Anyone any ideas on what to do?

[davebowler] 01/6/2020 09:31

AS a matter of interest-

Liberum;
Sirius Real Estate

FY 2020 maintains strong track record

Mkt Cap £824m | Prem/(disc) 9.5% | Div yield 3.9%

Event

Sirius Real Estate's EPRA NAV at 31 March 2020 was €0.806 per share (March 2019: €0.7482) which represents a 12.5% NAV total return over the prior 12 months (H1: 8.3%, H2: 3.9%).

The NAV performance was driven by a 9.9% like-for-like revaluation gain over the year (c.6% like-for-like after adjusting for capex). The valuation uplift is due to a combination of yield shift (26 bps of yield compression) and organic rental growth. The EPRA net initial yield on the portfolio is unchanged at 6.3%. The valuation of the portfolio was supported by the completion of the sale of five properties to the Titanium JV with AXA. The sale price was at a 19% premium to the prior carrying value.

Annualised rental income rose by 6.1% on a like-for-like basis over the period despite a number of large move-outs. This was predominantly driven by a 4.1% increase in average rental rates. Like-for-like occupancy rose to 87% from 85%. Sirius Real Estate has reported strong cash collection in Q2 2020 with April rent and service charge collection at 98.8% of normal levels. Payments in May were in line with April. A small number of tenants have requested payment deferrals.

The strong operating performance led to a 14.4% increase in adjusted EPS to 5.24 cents per share. The total dividend for FY 2020 has increased 6.3% to 3.57 cents per share. The higher dividend is also based on a lower payout ratio (65% in FY 2020 vs. 70% in FY 2019).

The net LTV ratio at March 2020 was 32.8%, comfortably within the target of 40%. Interest cover on the group's debt facilities is 11.0x (10.1x in FY 2019). Sirius also has significant flexibility with €121m of cash (€97m unrestricted) and €119m of unencumbered assets.

Liberum view

Today's results demonstrate continued strong operational performance across the portfolio. The company has achieved a material increase in both portfolio occupancy and the average rate per sqm over the last five years. Significant upside remains given the potential for asset management improvements across the portfolio. The average value per sqm of €775 is well below replacement cost and offers scope for further growth. The value-add properties represent 57% of the portfolio and have a vacancy rate of 19.9% (vs. 4.7% for the mature assets). The company's capex investment programme is delivering significant gains and there is considerable potential to increase this across the portfolio. Approximately 47% of the vacant space in the portfolio is going through the capex investment programme.

[davebowler] 24/4/2020 09:22

Matched bargain -

[irenekent] 16/3/2020 15:10

They have done this before and then come back to the market a couple of years later.

[davebowler] 26/2/2020 10:51

I also spoke to Liberum on similar lines alpa2.

[davebowler] 23/2/2020 17:02

htTPs://www.thisismoney.co.uk/money/markets/article-8030541/MARKET-REPORT-Billionaires-offer-sees-property-firm-soar-55.html

[bowerdean] 22/2/2020 10:17

Contrast Summit's behaviour to that of Daejan. Yesterday the family controlled company announced that it was taking the company private by offering to take minority shareholders out at a 58% premium to the average price over the last 6 months; whilst still below asset value, it at least looks like a reasonable and gentlemanly way to behave, unlike the very underhand tactics of the Summit board. I see that since the Tender was announced, Unifinter have increased their stake to over 98%. Surely they should at least now put the remaining few minority shareholders out of their misery by taking them out at Euro 1.45 and avoid the highly unsatisfactory situation of a messy post tender matched bargain facility?

[alpal2] 21/2/2020 15:26

After discussion with Liberum, I emailed both directors of Summit and Liberum saying they shoud be ashamed of themselves for coming up with the 'worst possible solution for minority shareholders.'
Like many, I have been forced to liquidate my position at €1-41.
With Unifinetr holding 82% of shares, the minorities owned about 80million shares. The benefit of this scam / scheme to Unifinter and directors is therefore NAV €2 less payout €1-45; i.e €0-50 per share or a mere €40 million total. Not a bad payday for forcibly getting rid of pesky minorities.

[royaloak] 17/2/2020 11:32

Not in this, just looking at today's statement. Asset Match not the end of the world, look at HNN thread, we all ended up doing wonderfully well there!

[jeff h] 17/2/2020 11:18

Disappointing to say the least.

[davebowler] 17/2/2020 10:42

Outrageously cheap offer when you consider that SRE is on a 30% premium to NAV!!!
Annoying that we have to accept , in effect, or lose our ability to trade!!

[davebowler] 17/2/2020 10:30

Liberum;
Mkt Cap £527m | Prem/(disc) -29.8% | Div yield 1.4%

Event

Summit Properties is proposing a tender offer and cancellation of its AIM listing. Under the tender offer the company would purchase up to c.148m shares (33.3% of issued share capital) at a price of €1.45 per share. The price represents a 1.8% premium to the closing price on 14 February 2020 and would return €215m of capital.

Unifinter and the board will vote in favour of both the tender offer and cancellation of the company's AIM listing, which represents c.82.1% of the issued shares. Unifinter will also tender its whole entitlement under the tender offer, which amounts to 121.7m shares.

Shareholders will be able to vote on the proposals at the General Meeting on 3 March 2020 and further information is expected tomorrow.

[stevenlondon3] 17/2/2020 09:03

I held in both my ISA and SIPP....neither would allow me to hold an unlisted stock. The major shareholder is I believe getting valuable assets on the cheap but this was always the risk when owning shares in a company with a very small free float.

[alpal2] 17/2/2020 07:28

Tender offer: What's going on? I was expecting imminent dividends of 1.5c which seem to have disappeared. Tender offer at 1.8% [Wow!] premium. No, an offer to buy at a discount since they will keep the dividends.
I hope someone can provide clarity. Unifinter owns 82% of SMTP, so why not just buy out in toto all other 18% shareholders. Also, with delisting I cannot hold the shares in my ISA; so much for the 'seconday market'.
This looks like a scam, smells like a scam. Is it a scam?

[alpal2] 22/1/2020 09:04

HCS: Interesting post but I don't see it as a potential problem as Unifinter will probably be happy to pick up any SMTP that Barnett needs to sell.

[alpal2] 20/1/2020 13:41

Per 1/2 Year results in Septemder:
"Dividends
 An interim dividend of 0.5 of a cent per share declared today and we intend to
declare a further interim dividend of 0.5 of a cent per share in 2019. Following
completion of the sale of the office building referred to above and subject to
market conditions, we expect to declare a further interim dividend of 1 cent per
share."
When will these happen?

[alpal2] 20/1/2020 10:09

I also had difficulty buying a small amount. Maybe Unifinter has a standing 'buy' order in the market.
1] Aren't we supposed to get another dividend after closure of sale of business complex?
2] Anyone like to guess NAV? Both total and make-up i.e. property and net cash. Presumably a high amount of cash at present?

[davebowler] 20/1/2020 10:02

According to Liberum Sirius was at a premium of 30% to NAV on Friday, whereas Summit is close to a 30% discount to NAV. Also according to them the weekly liquidity on shares was higher last week in Summit. I find that strange as I had difficulty getting hold of more Summit last week.