Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Vitabella: Do not worry. I have seen such situation many times before and I believe I know the problem why INTU share price is low and it is nothing to do with ground reality.
Just remember few things.
INTU assets per share is over £3.00 ... but most important is that, they are earning over £150 million more than all expenses and cost of servicing their debt. [Interest on their debt is ~ £200 million a year]
Like for like, they might earn around 10 percent less this year (due to CVAs), but that is not permanent thing.
They would start having new incomes this year too, that would probably push their earning above past earnings and would compensate loss of earnings sue to CVAs.
INTU are planning 1200 residential property, hotels with 700 beds and other cash generating investments, that would bring them huge income in near future. [Just residential property might bring them around £10 million a year additional income]. INTU have around 500 acres land, that is doing nothing and need development.
INTU has completed restructuring to reduce admin and management cost by £5 million, that would start in 2020 and onward.
After recent sales and sale of Xanadu plus few secondary asset sales, they would have enough cash to retire their 2021 debt without borrowing ... and reducing their gearing to below 50 percent, that would allow them to start paying dividend.
U should also remember that nothing has happened in last one year that INTU lost over £2.5 billion of their market capitalisation. All is to do with sentiments and the way sometime market reacts, especially when 2 bids do not materialises, especially when one bid was from major shareholder.
At this time, intu must sell at least 1bln pounds more of assets to make difference to their balance sheet, in addition to rights issue.
Intu declared balance sheet fixing as number one priority. I hope they will do it and do it in fair manner to all shareholders.
It would be nice if they can sell now all the assets at current market prices :)
Umeed
You will note that all property companies have written down their retail portfolios . British Land and St Modwen astutely made moves sometime ago reducing exposure and were managing to sell into a market where there was still some life
The latest Spanish centre sale although welcome has little impact on their debt and any betterment in their LTV is temporary until the valuers get stuck in with reducing the book value of their portfolio .Too little to late