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How are API funding their dividend, if its not covered, are they using the RCF. Isnt it better to reduce the debt of the RCF as its quite high? 5.2 +1.5% margin equal 6.7%
Nice half year update from the company. Like the intention to maintain the current dividend through 2024.
I've been topping up recently. Looks incredibly oversold. True it has a short to medium term interest rate that could be better. They have been unlucky either the timing of their financing. However, the gearing is very low, which gives lots of flexibility to ride any storm. At 8.5% ish dividend, which the company has already declared they can hold it looks like a great long term hold for me. DyOR
From 52p in mid-November to 68p in mid-January? Someone, somewhere knows something. Any idea what is going on? Maybe a takeover is on the cards? Discount is still close to 40%.
I guess if the company had a crystal ball they could have refinanced earlier. If they had capped when they did refinance then the capped rate would probably have been higher. They probably did what was best given the information at the time.
They would not have lost 3.5M on swaps (cancelation fee in todays rns)
'In light of the change in the interest rate environment since completion, the Company has taken the decision to break the swap at a cost of £3.56m and replace it with an interest rate cap at a rate of 3.96%,'
Isn't the debt based on SONIA plus 1.5%? It would have increased regardless of when they took it out.
They can try and put a positive spin on it, but they have essentially just 'lost'£3.5M since October because they did not refinance their debt earlier this year and refinanced at the height of the 'Truss's downturn'. This is around a third of their retained reserves at the end of the last financial year . It looks like they may also need to dip into them slightly to maintain the current divi for two years but with inflation at 10% it really needed to increase.
They are not alone, it is going to tough for REITs in a high interest, high inflation, recessionary environment.
I think I was mistaken as I can no longer find that data.
rylidan,
Where do you get your short positions information? The LSE page here shows no open short positions and no previous history of such positions.
Looking at the short tracker it seems that several shorts opened here when truss took over. The overall short value is starting to reduce now, and the price is rising as a lot of these were mopped up at ridiculous prices. They are in my pension and providing a nice ongoing income for me, so the shorters may find it difficult to close IMO. I can't be the only one who took that approach. This is a low liquidity share normally, with low daily traded volumes. When the shorters added 6% of liquidity its not surprising the price crashed to bargain levels. Going to be interesting how this plays out. The company has a low 21% LTV, and an objective to keep it between 20% and 30% so a lot of flexibility.
Can't say I share your doom and gloom prediction at this price. True NAV may drop in the next year, but this looks substantially over discounted IMO. It's a very long hold for me, collecting the dividends each quarter. Substantially topped up in the last couple of weeks, and will continue to dribble in funds as they become available. GLA.
There is an expectation that the nav will fall (already starting to see this), it is not expected to increase at least for the next year but probably longer (this applies to nearly all reits)
API's debt refinancing was awfully timed and so was expensive. The manager did say that the dividend cover was Ok this year, but the question is what it will be like going forward?
I have seen the point made that at the moment you may be better served holding the debt of reits rather than the trusts themselves.
I am still holding some of these but was not planning on adding until there is more clarity next year.
It's good share by NAV value..but something really wrong with pricing..Tesla car cannot be priced like Dacia car..isn't??? So it's Dacia then...
I listened to a talk from the fund manager speaking last., they are expecting a 20% fall in commercial property values over the next year. Today's rns indicates that this is already starting to show with the sale price being 11% below Junes nav valuation. The question is to what extent is this already priced in with the 50% discount?
Since moving name from SLI we have lost all RNS data here. Its all on the stock exchange. This site struggles with syncing RNS data. Another of my shares PAF also has no RNS feed.
New RNS today. Good disposal and a couple new tenants reported. Drop in NAV of around 5%, which is why we've dropped IMO. In line with MSCI so all REITs have suffered. Drop far too harsh IMO and has almost factored in a meltdown of NAV. Can't see that happening as there is such a huge gap between NAV and MCAP.
The discount to NAV is 47% and the dividend is 6.7%. What is going on?
I see LSE have not aligned the RNS feed yet for this ticker code.
1p divi in August, NAV at 110p per share up from 106p in last quarter.
Bought back around 5% of the shares so far in the recent buy back program.
Dropped a bit, so started to top up here again, as well as my other REIT. Nice LTV imbalance.
Abrdn Property Income, formerly Standard Life Income. Good luck to all fellow investors, let's hope it's a happy ship. K
Revenue reduced but still safe judging by interest coverage ratio (approx 10)pbit of 2.2m and interest expense of 208k
will be good contender for recovery play once dust setlles. "Beyond the current financial year, Group results should benefit from a recovery in sales revenues at both Foils Americas and Holographics, as well as the realisation of growth and profit improvement opportunities associated with the ongoing capital investment programme"
Lower end of expectations however... :P
Quiet board - nice results... +ve cash for first time in 15 years! API Group plc (AIM:API), the leading manufacturer of specialist foils and packaging materials, is today providing an update on trading ahead of its final results for the 12 months ended 31 March 2014, which are scheduled to be announced on Wednesday 4 June 2014. In line with the Board's guidance when interim results were announced in December 2013, the Group experienced a strong overall trading performance in the second half. However, the recovery has not been enough to fully offset the weak first half and full year results are now anticipated to be at the lower end of expectations. As planned, Holographics returned to break even in the last quarter after realigning its cost base to current sales levels. Laminates results improved after a full six months contribution from the major new supply contract and Foils Europe continued to make solid progress after the first half re-organisation of its UK operations. Volumes at Foils Americas weakened unexpectedly in the final three months, although results for the year as a whole will still be close to what the business unit achieved last time. Capital expenditure has been lower than originally planned, although still well ahead of depreciation. Investment in additional capacity in the foils businesses is scheduled to come on stream during the first half of the new financial year. With working capital substantially unchanged, further progress has been made on debt reduction and the Group expects to report a positive cash position at the year end, for the first time in 15 years.