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Not sold off anything yet as still holding out for a recovery...
Interestingly looking at the trades over the past few weeks, there seems to be more buys than sells...
I think we have to realistically expect there to be a drop in Divi if there isn't a merger or acquisition.
EPICs major shareholders = Columbia Threadneedle Invstments (17.57%), Hargreaves Lansdown EO (8.96%), Momentum Global Investment Managers (8.33%), Quilters Investors (7.54%), Investac Wealth & Investment (7.16%), Inter active Investor EO (5.72%), Mattioli Woods (3.27%), Wise Funds (2.96%), BlackRock (2.79%) and Close Bros (2.69)...
BlackRock have gone from one of the top 3 with about 15% to less than 3% so wonder if the big drop off was them dropping a lot of sell orders !?
I'm not sure who they would merge with. If Warehouse can't afford their divi it might not be feasible but I don't know why they aren't covered unlike here.
Nick Montgomery, Head Of UK Investment at SREI mentioned them at the Q&A so there might be something there but also discussed just buying individual properties if they went the sale route.
I've also been informed that Try might have an interest and already own some of Epic but I've not checked.
Could they merge with Warehouse REIT? Feel like they would both be stronger merged and have similar backgrounds.
Both are currently paying out more dividends than earnings.
From memory didn't they have funds to invest that would cover the divi when allocated. I don't want them to sell cheap for the sake of a sale just because it's difficult to work with a small scale.
Sell the property at full value and a wind down would be better than a cheap sale. Just keep going as is. I'm not sure who they could merge with.
Anyway I have bought more this morning as the cash that was waiting to be transferred still hasn't moved and there was an estimated date mid July.
These will have to be transferred now though to join up with the last lot that did actually transfer.
They made it sound like they are going to announce plan in Q3.
With the share trading 20p less than NAV I’m hoping that whatever happens it results in a gain from where we are now.
Been topping up here and there over the past few months as i think EPIC Share Price is low; however, am starting to think about off loading with the talk of reduced dividend cover and no real news on merger / acquisition which could degrade the Divi or NAV...
The cynic in me is wondering if this is a play for some of the institutions to deflate the SP so they can make some more money!!!
I have added some more of these as part of a broker tidy up. Currently held in x3 different brokers but hoping to get into just one. I would have bought more but Im waiting for an ISA transfer of shares and cash which I expected to have been sorted by now.
I guess it could be that as of the full year results, they'd had a partial period of income from disposed office/leisure assets that was completely lost with respect the the most recent half yr period.
Apologies if this is a stupid question, but as of the full year results 14th Dec 22, they said they had disposed of all office and leisure assets and were only invested in warehouse. In the same release dividend cover was said to be at 81.2%. We are now half a year later and the dividend cover has slipped to 67.3%.
What has caused this drop in coverage? Increased debt costs?
Looks like they are sitting on cash earning low interest with the result dividend not covered. They could sit on this cash and reduce dividends, watch it burn away supporting the dividends, invest it in new properties which would be at NAV or buy own shares with over 20% discount to NAV so cover the dividend. I don't usually like share buy backs but in this case it looks by far the best option. However that would shrink the company and so less fees for the BOD.
"Since commencing the Strategic Review, the Board and its advisers are engaged with a number of interested parties and the Board expects to provide an update to shareholders early in the third calendar quarter of 2023."
Ediston Property Investment Co PLC
Half Year Results
25th May ( according to news tab above ) - Ediston website just says May.
Not heard or seen anything. You'd expect a more volatile price. I tried a dummy buy and I get 64p, and dummy sell and I get 63.333p
I can sell but not buy on HL as they say there is a bid situation - but can't see anything about it in the recent RNS or in news anyone got any info to share? Slightly underwater capital wise with current SP, hopefully the "bid" will be closer to the NAV, will be sad to lose the monthly dividends
Its been suggested TR property group might be seen as potential suiters. Im not sure selling on the cheap is in the best interests of PI's. I will probably write and express that opinion.
I tried to buy a few more this morning and eventually had to put in a limit order but things are moving against me. I will keep it in until 5 Apr then look to combine them all into one account
Yeah I really like this share for the monthly dividend. Would be sad to lose that.
So who might be in the frame after the SR to merge or would a full sale be better.
I actually think the smaller size helps some PI's. Get a nice discount and dont get pushed around by the big boys. Swings and roundabouts. It could mean that the monthly income option disappears.
Well I decided top top up with some dividends and a free trade that was due to expire with Interactive Investor. I was already narked as their website was down over the weekend without warning for maintenance.
When I did get in I couldn't get to trade, there was a warning of some 3rd party supply issue and to use a limit order. This did not work either. Eventually I got more than planned to buy using a different broker.
So should see the extra income by the end of the month.
Sorry Terry 1 for the late reply but I tend to agree with your sentiments. Hopefully they have a good pipeline to offset the delay in investment and get a better deal overall. I was hoping for an uptick in the divi but going to cash and the uncovered divi has stopped that.
Still compounding that 8% isn't too bad but do I go back in today for a second nibble if II is working today.
Gerry557
I suspect there are reasons as you say why they cannot buy into another REIT although this is property I suspect it has to be a direct investment. However given this money is in cash would that not count against the 75% rule, must be getting close or over that level now.
However I cannot see any reason not to buy your own shares, seen this all the time including REITS.
The shares can be bought and placed in treasury, as no dividend paid on these shares there is enough money to fully cover the dividend. When the market has bottomed out these share can then be sold on the open market or via a placing releasing the funds to for new investment.
I suppose it depends on what you mean by "reliable"
Currently the dividend is not covered which isnt good. Now if this is temporary with a plan to recover great, which seems the case here.
I think it depends on many factors but splashing that cash on more investments will solve this. With a run rate on divis around £10m they could go on for a couple of years relatively easy. How much are the pipeline properties likely to fall of get a better yield. It sounds like a reasonable plan currently especially as rates have risen again. How much more is needed when energy and inflation are also adding the the brakes on the economy.
I like TerryM1's thinking but I think they are limited on what they can buy. At least 75% has to be property but there is some scope to get some extra income but there might be lending restrictions using cash that way.
I think its best if you "plan in" a 20% divi cut from the off and then if it doesn't happen bonus.
I am happy for them to sit on cash and wait for the right investment. As the note says there are many dimensions to check when buying the type of property set in the strategy.
I like when the board has clarity on their strategy and not "opportunistic". They are in no rush to burn the cash. Just waiting for the right opp, probably mid of next year once we see how valuations and pressure on leveraged property owners pans out.
The problem is that they are sitting on a large amount of cash not earning very much, no doubt a good move in the current environment as there will may be good opportunities to had at some point. However it means the dividend is not fully covered and will probably not be until the money is deployed and there is no point in sitting on a cash pile getting far less in interest than inflation.
How about a different strategy.
1. Buy back shares place in treasury and release during better times, less shares, less dividends so now covered.
2. Buy into another discounted REIT (if allowed), they should have the expertise to access the value of other REITs portfolio so in effect buying property at a huge discount, use the dividends received to cover the dividend shortfall. IMO you get a better deal in a heavily discounted REIT like SREI, ASLI, BBOX etc than buying property in the market. Sell out when there are better opportunities to buy property directly. Does anyone know if this is allowed?
Y Both crazy cheap.
yes - I've been invested here for a couple of years and regular as clockwork... I am dripping money in each month to take advantage of the low SP the discount v NAV makes this a long term hold and collect for me - even if there is a small reduction in the actual dividend during this recessionary period - it will bounce back -
Hi, is this a reliable dividend stock ? Thanks