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To retain REIT status the company must distribute at least 90% or its taxable income each year. So IMO the dividends will increase in the near future as rents return to normal. I've just bought in at 70.04p
So, anyone got any thoughts on the future dividend policy>? I think following from hints in previous updates and probably another one in this months dividend declaration, an increase in the monthly dividend will be on its way... but when and how much is an unknown.
Having looked at the changes previously taken and the current policy, i am hopeful of a solid declaration in the April update. Would be nice to see a 20% increase announced for payment in May, which i dont think is unrealistic bearing in mind the dividend was cut by circa 30% 12mths ago and the current cover they have.
More pessimistically, i think we will have another 3-6mths of the dividend at the current level...
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710099/DT_Digest_April_2018.pdf
The above document should give you a guide as to your tax liabilities and if your country has a double tax treaty with the UK.
If the link doesn’t appear above the doc is “Digest of Double Tax Treaties” (current version is 2018) it can be found on the UK Gov website.
Normally the REIT distributions are declared by the company as a full PID or a combination classed as Dividend and PID.
The PID portion in a standard trading account is paid minus 20% uk tax. This then may be claimed back dependant upon your tax position. Form R43 can be used. Personally I can’t claim the lost tax back as my country doesn’t have a DT arrangement for REITS. So I’m at a loss normally even If I use R43. It’s worth a good read and clearly depends on your country and personal tax situation. Hope this is helpful. If in doubt seek professional advice. Or from your own Tax Authority. GL.
Under UK tax law, Companies that are REITs can pay gross dividends to Share holders; meaning, the dividend is paid in full based on what has been agreed by the board.
UK tax laws mean UK citizens / tax payers must complete a self assessment tax return under certain circumstances; so most people receiving dividend (regardless of where they come from) payments will end up having to declare them and pay tax dependant on income etc.
If you are not a UK citizen or a UK Tax payer (i.e. you do not live and work in the UK) then you will not have to pay tax in the UK but you will have to check with the country you are living in tax authorities and pay any tax that you might owe...
does it works, thanks! however it's for english citizens, with an english income, i'm not sure it's for european citizens as well..
Not sure if the link will work (sometimes they get removed) so if it doesn't work, just google "dividend tax"
https://www.gov.uk/tax-on-dividends
Hi i'm not english, just a questions: is the dividend a taxable income? and what's the rate tax?
tks!
If you haven't seen; EPIC have completed the sale of the Tesco Superstore site at Prestatyn Shopping Park to SuperMarket Income REIT... £26.5m which is inline with the Dec 20 valuation and higher than the purchase price of Dec 17... not sure what these two sums are, but the statement seems to imply that the rental yield on this was at the lower end of the businesses asspirations...
To maintain REIT Status, EPIC need to distribute 90% of its taxable earnings in any specific financial period...
That doesn't necessarily mean 90% of its income! So whilst rental income covers the dividend circa130%, this will hopefully transfer into an increase in the dividend payment; with the financial period ending 30th Sept, we might not see a increase in divi that soon. Though, with the latest government announcement on the opening of non-essential retail on the 12th April, i'm hoping to see some news on a change in dividend policy sooner rather than later...
Think me and Riskingit have discussed this previously. There is a certain amount of revenue that has to be re-distributed to shareholders to maintain REIT status... I doubt very much a special divi will appear here, they'll probably hold back some cash of "cash-flow" and potentially future investment.
But am very optimistic about at incremental increases to the divi once we see light at the end of the Covid tunnel and we should see a return to 2018/19 divi of £0.0575 when we return to "normal"...
Think me and Riskingit have discussed this previously. There is a certain amount of revenue that has to be re-distributed to shareholders to maintain REIT status... I doubt very much a special divi will appear here, they'll probably hold back some cash of "cash-flow" and potentially future investment.
But am very optimistic about at incremental increases to the divi once we see light at the end of the Covid tunnel and we should see a return to 2018/19 divi of £0.0575 when we return to "normal"...
As I recall they stated in a recent RNS that the div would start to increase once they could see an end to the C19 issues
a c. 5.5p annual div at the current SP is a juicy 8%
And who knows - If they have surplus cash a special might be on the cards
So, by my rough calculations, since our year end (Sep) there has been an excess dividend cover of around £1.4m so far this accounting year.
What are the chances of a special dividend sometime soon to get rid of the surplus from the accounts?
0.47p (the previous monthly div) would still leave the company with money in the bank and give shareholders a nice smile. Or, if dividend cover continues at this rate possible an even bigger special Dividend at the end of the year.
Yes - It's a buy signal for me so I'm dipping in again. This will be my third dip since C19 struck bringing my average down from 96 to 76 - Money in the bank as far as I'm concerned
Investment Managers for EPIC have purchased a further 121,000 shares in the business... now holding 1.7m shares in total and have committed to purchasing shares equal in value to 20% of there annual fees! Couldn't see them agree to this unless they had a positive feeling towards the assets!
More firector buys - looking better and better for when the lockdown finally stops
from the RNS today "The Board is looking for an opportunity to start the process of building the dividend back up again"
I would imagine, if the Div does increase again then this should make it much more investable and bring in more investors to raise the SP back to a nice level hopefully around 100. That would be nice anyway.
I think the 25% SP increase is a real potential... if not more! The property has been down valued a lot over the past 18mths; so i believe that the portfolio has been undervalued (mainly due to the negativity around retail and also the fact there doesn't seem to be a difference between NAV of retail property on the high street and that on out of town retail).
Lets hope this lock down doesn't last too long and businesses can start to return to normal and we can start seeing some growth again!
Latest RNS reads quite well - Normally this REIT trades a tad above NAV so c. 25% potential appreciation if and when the SP catches up with the current NAV.
Also I like to see the directors buying
Yes Rickingit... Divi looks like it will be increased; i believe EPIC are planning on making an announcement along with there year end figures.
SP has been pushed up in recent weeks by this anticipated increase and Momentum Global Investment have made a massive buy; im guessing they are banking on an increased divi and capital growth as we exit the covid battle and life slowly returns to normal!
Latest RNS suggests a div uplift is coming plus some decent capital appreciation over the last few weeks -
100% agree with your principle of heavily discounted REITs... I followed a very similar process and am very happy with my income! Be nice to see the divi increased as i might have to start taking some income from them!
I'm mostly about the income so have been seeking out REIT's with healthy NAV discounts - Have done quite well with capital apprciation recently with this and the AIRE REIT - Happy days and the divs are still juicy
Yes saw the statement from the board RE increasing dividend payments; great news and no doubt has help push up the share price. REIT distribution requirements is to return 90% of tax exempt income profits; so, if they right down the asset values, these can be used as losses on the annual tax return and therefore reduce the profit and in turn reduces the amount that they have to distribute... if they choose to do it...
Managed to persuade my mother to move some of her investments from CASH ISA into an investment ISA and buy these (only 10% mind); wish she'd listened and moved more, but she was very cautious; she's now getting more in divi payments from EPIC then the other 90% combined!!! Managed to get her bought in at £0.51...
Had my divis all set to reinvest for the past 9mths, building up an additional holding, but at close to £0.70/share, the divi return is starting to get a bit too diluted; so thinking of releasing some shares to pump into something else that's still depressed in value.... if i can find anything that gives me confidence that is!
Either way, im happy with EPIC, its doing me well...