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Underwater here but have been slowly adding but this bond situation is a little concerning....
The clock is ticking on the Bond financing, depending on how and when they sort it, this may become investable again
Shore Capital got a new “sell” rating out.Anyone got a copy?
Thanks. I was thinking around 9% too for me to be interested in rolling over.
Not that I'm expecting it to be offered but probably somewhere between 9% and 10% for 3 to 5 years. But perhaps they'll have some other combination in mind worth considering. Not sure BOE will reduce interest rates before August which I'm sure BOD were hoping for and would have given them a bit of scope to offer lower coupon on extension.
Otherwise I'm content to receive maturity proceeds (assuming they will be able to find the cash) and move into something paying a little less but safer.
What rate would make you extend? and for how long?
As a bondholder I'd be happy to extend - mind you at a lot higher coupon than the current 4.5%.
Agreed. To have no mention of the bond refi in the annouuncement is ridiculous.
The whole process has been incredibly badly managed.
Its hard to believe they would pay a 5% divi if there wasnt a plan but with this lot in charge nothing would surprise me.
Im amazed the lenders are allowing a 20% pa divi with the LTV at 55%. Hopefully they know something we dont
It seems highly unlikely that enough assets have been sold or will be sold to repay the bond.Cash at 34m does not specify how much is restricted.Usual disingenuous behaviour from this Board.So bond refi necessary.Maybe they can find £30m- £40m unsecured debt but LTV still a problem.would bondholders extend at a higher coupon? Possibly.Would need to be organised in the next 6 weeks.Bizarre to keep paying dividends without a contractual plan in place.Odds still on an equity issue?
So latest update gives us a div of 1.2pps. Pd 12 Jul 24. Xd 30 May 24. Div remains unchanged from last quarter which, for me, is good news especially given all that is going on with the current bond saga. Even at current dividend levels this is a good earner though for those of us who bought in at a much higher price is doesn't look good for our capital. Happy to remain with RGL and collect the divi's but would like to see this company's share price return to previous levels though I think this is going to be long journey. Who said investing was easy!!!!. Continued good fortune to all RGL investors, those considering getting in and those merely watching. Rgds, S
Not so good
0.012 unchanged from last payment
My information provider updated it Monday at 0.013 up marginally from 0.012 last payment
So maybe an update tomorrow ? Or this week anyway. Be interesting to see what the dividend will be.
Very hefty buy into the close there over 27k
Fair enough and thanks
Dividend Max had it for yesterday for some reason
The next dividend announcement is due on 22 May, together with latest trading update and outlook announcement.
Was a dividend declaration announced yesterday ??
I see it was supposedly to be the 17th
Not all doom and gloom
https://www.cityam.com/landsec-workers-returning-to-offices-in-london-boost-landlord/
Some nice buying into and after the close might set up tomorrow
Anyone expecting news on bond repayments before AGM?
Well done Matt, nice one ☝️
OK. Close, but no vape. I'm forgetting that a £75m raise would allow £25m of secured loans to be paid down. Although raising debt at 9%+ to pay down debt at 3.5% would be pretty desperate - unless these loans were close to breaching LTV coventants. Not entirely sure of how the existing hedging on the floating rate loans would apply, assuming that these alone were paid down. However, as a theoretical exercise...
3.5% on £25m is £875k of interest saved and which can be added to the dividend distribution. So, raising £75m of new debt leads to dividend cuts of of 24% for a 12% interest rate, 33% at 15% and 17% at 9.7% - all rounded up.
Raising £75m with a 3:2 equity issue would (could) result in a 55% dividend cut to those who do not subscribe, but a 12.6% increase for those who do.
The above, and previous post, assuming a current annual dividend rate of 4.8p per share.
Out today at 25.09p - a 90% return in a couple of months will certainly do me!! :-). Good luck to all longer term holders here - I hope there's a longer term recovery story for you!
Https://www.costar.com/article/2142266678/martley-raises-%C2%A3250-million-for-uk-lending-strategy
12% on £50m is an additional £3.75m annual interest payment on top of the £2.25m currently being paid on the bond. The extra is the equivalent to a 15% cut to the dividend. A 15% rate is an extra £5.25m to the current interest paid, which is equivalent to a 21% cut to the dividend.
If the 'raise' is £75m then 12% interest rate equates to a 27% dividend cut, and a 15% rate gives a 36% cut.
SONIA is currently 5.2%, so 9.7% gives a 10% and 20% reduction respectively. A possible gamble if interest rates are expected to 'not rise' from here.
If there was a 1:1 equity raise ((£50m) then a shareholder who did not subscribe would see a 45% dividend cut. A shareholder who did fully subscribe would (ok - could) see a 9% increase to dividend received. The £2.25m saved can be added to the cash available to pay the dividend.
Nice little article from Oliver Shah available on the Martley website: https://www.martleycapital.com/shah-on-property-office-opportunists-need-chutzpah-and-access-to-cash/ It's a couple of weeks old, but evidently it's not just Martley that sees opportunities in the "beaten-up office market". Well worth a read if you're feeling a little nervous about your holdings.
Also contains a great quote on the two golden rules for property PLCs - Rule one: don’t ever do a deeply discounted rights issue. Rule two: don’t forget rule one.
Matt - indeed ‘when to exit’ is the key, too often greed gets the better of us, I first got out at around 97p and was fortunate, I re-entered in the mid 20’s but just over 30p the warning lights came on again so I got out. This thing is far too volatile and and a lot of risk built in, so good fortune with your plans