Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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OK Tim Bob. So what you are saying is that the asset value will have to increase to meet the prefered debt to asset ratio. That is what I would like to see. Apart from that, it does look quite sound with a good discount of share price to NAV.
Operastar... debt wont be paid off/reduced in £ note terms; if that what your looking for, id suggest you look elsewhere...
EPIC typically maintain the credit facilities at the £110m mark an reinvest surplus funds in further developing the property portfolio... thus giving investors a better return.
OK Tim Bob. I accept that logic, but I am an old fashioned conservative and don't like a debt that can always be called in or interest rate hike as with a mortgage. Ever heard of negative equity? I do hope that debt level will be reduced.
This is a red herring...
With approx. £302m in Assets and debt at circa £112m, net assets are £189m... Debt to equity is roughly 0.37 (37%) which in most sectors is considered good... The boards target level is 30-35%, so only 2% over this after a global pandemic which hit property values! Debt facilities and covenants have plenty of headroom, so very little risk...
Revolving Credit Facilities normally have higher interest rates and are aimed at business' that will dip into and out of them when needed for cash-flow issues... EPIC has relatively good cashflow so wouldn't typically need that type of debt facility...
As for "how is it being paid off!"... the aim isn't to pay it off... most business' operate with a proportionate level of debt permanently as the "Gearing" allows for them to make more money! Case in point... Credit facility has an interest rate of 2.86%... But EPIC can make 18% from that same money...
Anyone got an opinion on the debt level? . It seems very high at 111 mil . Even the board says it is not within their own risk level. How is it being paid off. I am more used to a "revolving credit facility"
Agreed Riskingit, the SP movement isn't worth worrying about at the min as markets are all still spoofed...
Not adding anymore to my ISA portfolio as i'm still a bit to heavily invested, but my SIPP is set to re-invest with EPIC every month...
Looking forward to seeing what they do with the proceeds of the office sales... and when/where/how much the long awaited divi increase will be...
Risking it.
I don't mind SP drops as it allows you to buy cheaper. That's OK if its just a temporary blip. The market is on one at the moment, I'm just hoping it gets back to some sort of normality before my pockets run out.
Still not too long before the next larger portion dividend
Agreed Gerry - The monthly div keeps me sane in these these insane times.
The SP drop is only a pain in the @rse if you intend selling
I cant remember what the SP was when I said it was too expensive after my first buy but Ive gone against my own advice and added some more today.
Hopefully it will get back to where it once was or Im willing to add a third lot if it falls even further. I like the monthly dividend especially when the markets are choppy. Added some lower yielding TOWN as it on a big discount.
So they sold their last office at a loss to Nav but again from original price. That’s ok I guess.
Will be better when they come up with a cunning plan for the proceeds.
If your confident in their retail park strategy (I am) then I would buy at this price. Worst that could happen is dividend stays as, I think. If they increase dividend, share price will recover as it will make share more attractive.
The whole market was down, fearing the worst but now sort of over it and the market is up today. How long for...... Keep an eye on sky news.
There is definitely more to come but I suppose its how far the west will be pushed that will dectate markets.
Last Office gone at a discount. Maybe I need to buy a bit more of my office Reits to counter balance. Both can't be right or can they.
Really don't get why EPIC has dropped... I get that Ukraine is a unknown and how it will potentially effect the markets, but bearing in mind how well EPIC did during the hardest point in the covid lockdown, I really cant see this drop as being a long term thing...
I’m monitoring this one closely into next week as a long term holder.
If the markets take a wobble over Ukraine it could present another opportunity.
Anything under 80p for me is ok. Bcpt backed off recently as well at the end of Jan into Feb. Still at a big discount to Nav. Usual market madness....
Apparently analysts are disappointed that the NAV only went up a few pips - Clearly a rising NAV and chance of a div lift doesn't cut the mustard these days - Go figure
Completely agree. NAV up but shareprice down?! Seems illogical and the discount to the NAV has now widened.
Still at least the RNS hinted at an increase to the divi at some point in the not too distant future.
RNS a little disappointing but resulting SP fall way over blown
Shame the div only held this time - Hey ho maybe next time
Yeah, happy with the gain... but like you Riskingit i'm mainly after dividend; so any increase will put a smile on my face...
c. 33% gain, not too dusty Tim
I think you're right, any capital increases will be low and slow but an increased div will suffice for me. I primarily invest for income so fingers crossed. Plus REIT's often do well when inflation soars so here's hoping
Last NAV review was Sept 21 (announced Oct 21) and was £0.8961... Since, sept, we've seen a sale of offices at or above the Valuation and so with a more optimistic outlook we should see some NAV growth, though I doubt it will be significant...
In the sort term, I can't see much more SP growth without a Big increase in NAV which is unlikely; a increase in the DIVI on the other hand is significantly more likely and will also help drive the SP higher...
Riskingit, my Average for EPIC is now £0.6562 in my ISA and unfortunately £0.902 in my SIPP... i started to buy in at around the £1 mark and kept buying as they fell...
Regarding "taking profits", his advice all those years ago, was; "set a price you are happy to sell at, set a sell order and walk away"; basically don't second guess yourself and be happy with margin... When I sell, I tend to re-invest the original capital and build up a cash reserve...
The share Price is now quite close to the NAV, the big discount offered over the last 18 months has been eroded by recent increases.
There should be a new NAV announced by the end of next week which could provide a boost to to the share price if it provides a decent uplift.
There's been a couple of positive articles recently but the SP seems to be stuck around this mark.
Suppose I'll have to sit back and enjoy the juicy dividend for now
https://www.telegraph.co.uk/investing/funds/get-monthly-income-investments/
Another mention in the DT in an article about investing for monthly income...