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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
Hey Broom - absolutely agree - I certainly wouldn't be buying here, it's more about when I exit!
Matt - good call but you’re a braver man than me on this one. I still want some clarity on bond before buying
Matt, You are more than welcome. Like you said it is all about sharing views, thoughts and suggestions on particular shares and strategies and that I hope I did. May your gains always exceed your losses. Good fortune. Rgds, S
Thanks Saint - I think that's good advice, and defo what I'd be doing if this was a larger holding, but its only a few grand so probably not worth holding a small rump. Thanks though :-)
Matt, Well done on your timing. It really makes it all worthwhile when we make a decent return, well I know it does for me. Now it is all down to what you are going to do next - as you say you never planned to be a long term holder why not consider selling your original stake plus 50 or 75% of your profits. That way you can let the free money ride and either way you are still a winner as the share may go up yet further and you will still continue to receive the future dividends and all at no cost to yourself. Continued good fortune and good luck with whatever decision you make. Remember a profit is only a profit on paper until you finally sell. Rgds, S
Not sure I understand your post Scandi. I am simply pointing out that I bought it at 13p in March (as evidenced by my post back on 12 March) on the basis that the stock price had completely dislocated from reality due to an awful RNS from the Company. I was lucky to have hit it fairly near the bottom, and now am considering what level I exit - I never planned to a be a long-term holder here. I thought that a Board like this was specifically designed to discuss a stock's share price and when to buy and sell, so not quite sure what your problem is here?
Very strange timing for the sale.They have watched the share price slide for a couple of years.Majik are very shrewd operators.They could not sell if they had received inside information on any potential share issue.Declining to receive information is a common practice- but,by inference,can convey something is going on.It would be normal to consult your largest shareholder if a rights issue is being planned.They may be selling because they anticipate a further dilutive share issue and want to reinvest the cash back in RGL.Or they may just not see the prospects for the shares improving in a realistic timeframe.No doubt it will soon be obvious.
I think as a non uk entity you have to disclose within 4 day's or as a UK entity within 2 days under FCA rules. Like you say interesting to see the share price holding up while this level of selling so I assume a deal was done with another interested party.
RNS indicates that Majik's holding is now 4.71%, whereas it was 9.13% back in September 2021. Whilst that's not a ringing endorsement of the company (!), it's surprising that the share price seems to have held up well during the selling (unless the bulk of the selling pre-dated the recent small bounce). More Majik selling to come or will they be content at this level?
Frankly, the probability that you hit the all time low for investing in this dog we all own and now have some fantasy idea of a level where you would reduce risk, is simply laughable.
Not impossible, but extremely unlikely.