The Local Shopping Reit Share Discussion Threads

[manfrommoyse] 23/11/2018 15:30

@redhill - spot on, those guys need constant chasing and the new lot are worse. I'm transferring away, but only once I'm convinced I've sweated those unquoteds!

[redhill9] 23/11/2018 15:12

I too have had different experiences, not with different stocks within the same ISA but with the same stock held in different ISAs. I had a delisted stock with Hargreaves Lansdown ISA that they transferred out to a paper certificate 6 months after de-listing (I think the rules say within 28 days?) and the same stock within a Barclays ISA that is still there, but I suspect with Barclays it's more about incompetence than any attempt to follow the spirit of the rules!

[manfrommoyse] 23/11/2018 15:00

ISA debate

I have had different experiences even within the same ISA. My ISA currently contains long ago delisted stocks that have paid out small sums even years after delisting as liquidation ground on. OTOH I have had to take certificates when a re-organization meant that the resulting loan stock was ISA ineligible. On another occasion where there was to be a hiatus with delisting prior to a relisting as an eligible share (life is complicated!) I rang up and Barclayshare (as it then was) were able to keep the holding under the "spirit" of the regs.

As an ISA holder I find the argument over preferential treatment bizarre. If holding is not permitted you have a simple choice. Take the certificates and await full payment. Leave in if you want the cash in the ISA; a buyback can then only enhance the final value you will receive.
MFM

[redhill9] 23/11/2018 14:52

A (voluntary) withdrawal is not the same as an (involuntary) transfer out.

Different situations, one not allowed the other compulsory in certain circumstances such as a de-listing.

[epistrophy] 23/11/2018 14:30

Here's an interesting hypothetical question. What if you held shares in a Lifetime ISA?

Withdrawals are prohibited from LISAs so the manager wouldn't be allowed to transfer the shares out - but like all ISAs they aren't allowed to hold unlisted shares. Catch 22!

[tiltonboy] 23/11/2018 11:18

In touch with TISA in respect of the de-listing, and they are going to look into it. They have mentioned the "spirit" of the ISA rules, so it looks like there may be some leeway.

Will report back when I get a definitive answer.

[gfrae] 22/11/2018 09:18

If ISA holders are forced to make a donation to non ISA holders then this arrangement is not in their interest.

[scburbs] 21/11/2018 21:59

The prospects of a material dividend (income distribution for tax) before liquidation/delisting is low given they have concluded best route overall for shareholders is liquidation (capital distribution for tax).

At the risk of repeating myself, the best middle ground is for them to buy back shares in the market or via tender.

[gbjbaanb] 21/11/2018 20:40

Unfortunately they intend to de-list in december, and final distribution up to a year later. I doubt HMRC will accept that!

And I'm sure by nominee broker will accept it, or cope with it well :-)

So its wait and see time for a bit, I expect a "final dividend" distribution before de-listing, and then see what happens with the rest, hopefully not delist at all, but "suspend trading" indefinitely (until the company closes) perhaps.

[scburbs] 21/11/2018 12:20

You need to compare to the current situation where they could be forced to sell at 30.5p or transfer out of their ISA to a general dealing account. If LSR buys shares in the market at 32-32.5p then the position and options for ISA holders are definitely improved.

It doesn't mean LSR couldn't also progress discussions with HMRC to avoid ISA holders being forced to sell. If HMRC allowed a 3 month extension it would at least allow 26.7p to be returned to the ISA and, therefore, the value moved out of the ISA would be much lower, albeit clearly a 12-18 month period would be much better.

[gfrae] 21/11/2018 10:23

Yes it would. Those forced to sell would lose 2p or more if they tender per share and 4 or 5 p per share if they dont as compared to other shareholders.

[scburbs] 21/11/2018 10:02

No it wouldn’t. It provides an exit to holders who want to get out sooner and it’s optional.

In terms of ISA holders it would provide an immediate easy to implement improvement on their current situation. In terms of the other suggestions: distribution before delisting (they are clearly targeting a capital distribution and I don’t think you can remain listed whilst in liquidation) looks a non-starter and equally postponing the delisting isn’t in anyone’s interest as once they have decided they want to distribute via liquidation they aren’t going to change this decision for ISA holders. This leaves trying to discuss with HMRC. Clearly that could work, but have they really left enough time for that and will ISA managers receive any new guidance and implement it in time.

In that context I think my suggestion is great for ISA holders compared to where they are now. If they just provide liquidity in the market then they any holders could wait to see if any of the other routes come to fruition and if not sell at 32-32.5p shortly before delisting. What it would do is put pressure on their ability to distribute 26.7p to other shareholders in February, so could be detrimental to that group from that perspective although their final distribution should be higher.

[gfrae] 21/11/2018 08:40

Your suggestion would benefit one group of shareholders over another.

[frazboy] 20/11/2018 16:52

agreed scburbs, thanks to others for posting.

[scburbs] 20/11/2018 16:29

Tender offer at say 32-32.5p would be a sensible option. Alternatively they could just go into the market and buy whatever shares are available up to that price (they should really already be doing this). That would allow people to exit closer to the final anticipated return whilst giving a marginal NAV enhancement to the remainder (assuming they achieve 33+p).

[gbjbaanb] 20/11/2018 13:29

Just had a quick chat to Rupert Wallman at LSR, they are aware of the ISA issue and are talking to HMRC about a temporary holding the delisted shares inside an ISA wrapper (no doubt my broker will not be able to cope with this, but that's another matter!), but also considering other options too - such as a distribution before delisting, or postponing the delisting until a later date.

Right now he can't give any firm information but at least they know and are trying to mitigate the issue for us. Which is nice.

he said they'll probably issue another announcement when they have something to tell us.

[scburbs] 16/11/2018 18:04

Circular worth a read. Feb 2019 distribution of 26.7p assuming at least £3.2m from 11 properties in December auctions (target is £4.2m). Then another 9 properties to sell.

Range still stated as 33-34.5p. Final distribution target by end 2019. Given they are holding back 7-8p they should probably do a second distribution before the final completion of wind up, but this is not mentioned.


hxxp://www.localshoppingreit.co.uk/investor-relations/shareholder-information/december-2018-general-meeting-notice

[hillofwad] 16/11/2018 12:45

Should not be many left after the auctions and no doubt they have some investors lined up to bid for the bag of liquorice all sorts left

Maybe perhaps as little as £3m will be remaining? so maybe a 30% discount to get these out of the door

[eeza] 16/11/2018 09:36

De-listing on Dec 14.

Most ISA providers don't allow de-listed shares to be held.

I have had this problem twice in the last 3 years and have had to sell before de-list.

[redhill9] 16/11/2018 08:42

RNS this morning. Look like there could be an early distribution.


FOR IMMEDIATE RELEASE

16 November 2018

The Local Shopping REIT plc ("LSR" or the "Company")

Members' Voluntary Liquidation

Publication of Circular and Notice of General Meeting

In its announcement dated 31 October 2018, the Board of LSR indicated its intention to convene a general meeting of the Company for the purpose of considering a resolution that the Company should enter into a solvent members' voluntary liquidation ("MVL" or "Members' Voluntary Liquidation") in order to return value to Shareholders, in accordance with the Company's Investment Policy.

In furtherance of this, the Company is today publishing a circular to Shareholders (the "Circular") containing, amongst other things, a Notice of General Meeting setting out a Resolution to approve, amongst other things, the Members' Voluntary Liquidation. The General Meeting is to be held at 11.00 a.m. on 12 December 2018 at the offices of BDO LLP, 55 Baker Street, London W1U 7EU.

On 8 July 2013, the Board of LSR announced the results of a strategic review which recommended to Shareholders a change of investment policy which allowed for "the orderly liquidation of assets, the repayment of debt and the return of the remaining capital to shareholders over a period of time". That recommendation was approved by Shareholders at a general meeting of the Company on 25 July 2013.

In December 2017, LSR reported on progress against the Company's Investment Policy in accordance with that approval. That report also announced the further acceleration of the property sales programme. Progress with the sales programme has been such that the Company has been able to deliver a major element of its Investment Policy, fully repaying its bank debt in July 2018. Since then, all net proceeds from property disposals have been retained by the Company.

The Board considers that the end of the Company's property sales programme is now in sight. In view of this, and the likely balance of the Company's cash reserve at the end of the calendar year, the Board has undertaken a thorough review of the options for returning cash to Shareholders and has concluded that the winding-up the Company by way of the Members' Voluntary Liquidation is the most appropriate route for achieving this. Given the Company's relatively simple financial position, the Board believes that this should enable a substantial initial distribution early in the liquidation process.

The Members' Voluntary Liquidation will involve the cancellation of the admission of LSR's Ordinary Shares to the Official List and to trading on the Main Market of London Stock Exchange plc. Applications will be made to the UKLA for the suspension of listing of the Ordinary Shares on the Official List of the UKLA and to the London Stock Exchange for the suspension of trading in the Ordinary Shares at 7.30 a.m. on 12 December 2018. If the Resolution is passed, applications will be made for the cancellation of the admission of the Ordinary Shares to listing on the Official List and to trading on the Main Market. The cancellation is expected to take effect at 8.00 a.m. on 14 December 2018.

The Company will also cease to be a real estate investment trust ("REIT") and the Company is holding discussions with HM revenue and Customs to ensure an orderly exit from the REIT regime.

Further details of the Members' Voluntary Liquidation, the appointment of the Liquidators and the associated arrangements are set out in the Circular.

Save where otherwise defined in this announcement, all capitalised terms and expressions used will have the same meanings given to them in the Circular.

The Circular will be posted to Shareholders today, 16 November 2018. A copy of the Circular will be submitted to the National Storage Mechanism and will shortly be available for inspection at: www.morningstar.co.uk/uk/nsm.do and on the Company's website at www.localshoppingreit.co.uk/investor-relations.

[scburbs] 16/11/2018 08:13

Rent on Hasting property was £112k in 2007 so strong rental growth (36%) due to market forces, albeit valuation has plummeted. No obvious sign this property is over rented. The Argos unit looks like it went from £55k to £63k from rent reviews (2008 and 2013) The Italian Way last rent review (2010) took it from £27k to £30k so again £32k now does not seem out of line.

Given its prime location in Hastings this is probably just a relatively good asset (certainly relative to the LSR wider portfolio!) available at a bargain due to the Argos situation.

[frazboy] 16/11/2018 07:54

Interesting, Thanks Tilton

Anyone have any thoughts as to when the final settlement might be (as opposed to the February initial payment)? That may be largely superfluous as it may be for a fraction of a penny depending on how the December auctions go

[tiltonboy] 15/11/2018 20:16

In the original brochure, Hastings was No 6 in the highest valued properties, and Bolton was number 10. They only had 9 properties valued at 1m or more at September 2106, so Bolton must be valued below 1m.

[frazboy] 15/11/2018 18:10

Guide was 875k so I guess that was the other £1m plus property