Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Absurd is the huge volume today with large trade changing hands, suddenly up to 25.35 and down again to 24.50p.
volume... http://uk.advfn.com/p.php?pid=staticchart&s=L%5ERGL&width=550&height=205&p=1&t=1&dm=2&vol=1&cb=
Totally agree, lots of UK up for sale
The penny might be about to drop that the share price and the bond price are totally absurd. Shareholders may have been conned into selling in the belief that the market is always right. It isn't. The UK market appears to have forgotten how to price an instrument correctly - not just RGL, but many, many others (see Hotel Chocalat for recent example). I think this bounce will continue as investors begin to get a grip.
Sign in today, 1st post, and being negative. The Portuguese say "Va fa un culo".
Sandaya - Member Since - 23rd Feb 2024
Good to see the share price rising again today. Confident it will be in the mid 40s at least by years end despite the best efforts of the usual armchair experts/naysayers!
Mmmm one post, signed up today.
The lack of detail re the bond suggests to me that the cash being raised will end up going to the secured creditors. The refinancing of the bond will be achieved by means of an extension of existing secured facilities and will be contingent on a significant level of property sales.
Inglis has other property interests other than regional reit and will be very happy getting his management fee and dividend before the inevitable mass sale of the properties
24.25p +0.85p
Another good push-up after the low opening ( large spread and AT )
I suggested they could give more detail on the sale with solicitors.
Which building is sold, when was it sold subject to contract, when are proceeds expected.
Asked for better details in next update if proceeds are not in.
Had a prompt reply saying Noted and would comply
Paying the divi should signal there are no concerns about the ability to repay the bond in August.If the Board were more open with shareholders about why they are that confident ,then the price of the bonds and shares would undoubtedly rise.They have withheld how much free cash is currently available ,unlike in the Q3 update.With an LTV of 55%, surely most of the portfolio must now be pledged to the institutional lenders? Where will £50m come from? Let’s hope that on 26 March relevant information will be made available.In the meantime both the bond and share prices reflect the uncertainty brought about by the poor communication from RGL.
The 22 million sale with solicitors is a bit crucial, as is usual little detail given a bit annoying.
Had said completion is expected within x time might have given me some comfort.
The share reinvestment is good will save cash.
Think I will write to the company for any details they can give, full results soon hopefully sale is through by then.
At least shares rose today.
I still anticipate bond to be re paid in full however if it is rolled I would expect a v high rate to be offered to enforce this ie15+…
There would be a register available that lists the major % holders of the bond so yes be interesting to see the colour of it…i personally think b small chance the rol would happen but even if does be v attractive coupon…
Very good post baldmark
Thanks CHELMOCHASER,
I get what you're saying that it it is redeemed at maturity, it is a very good deal - 15% for less than 6 months (at current 89 ask.)
I also understand that if RGL folded, despite being behind the secured creditors, there is sufficient property in excess of the total debt that retail bond holders would have a reasonable chance of being paid eventually.
What I am keen to understand whether private retail bond holders are likely to be forced to accept a roll on revised terms rather than being paid in full at maturity and if so, what those terms are likely to be.
From the prospectus: (https://www.regionalreit.com/~/media/files/r/regional-reit-v2/proposed-capital-raise/retail-eligible-bonds-a.pdf page 27) this is clearly possible:
"Defined majorities may be permitted to bind all the Bondholders with respect to modification and waivers of the terms and conditions of the Bonds. Therefore, for instance, if a significant majority of Bondholders were to vote to amend the Terms and Conditions of the Bonds (for example, to change the final maturity date of the Bonds) then that amendment would be binding on all other Bondholders. "
Clearly the willingness of the majority of the bondholders to accept changes to the terms of the bond are likely to reflect the interest of their overall holdings (i.e. any equity holding, other loans outstanding to the company etc) and not just their holding in the retail bond itself.
Is there any way to know who the majority of the bond holders are? This should help in determining if they are likely to accept terms that are unfavourable were they to be considered in the interest of the value of the retail bond alone. Were this the case it would clearly justify the seemingly excessive discount.
They need to be very careful.If bonds are not paid out in full in August, after paying a £6m divi, the capital markets will show no mercy to The Board and their advisers….
Not feeble tick….just a sensible view thank you all the same
Agree with your above comment…however they arrive at it I believe bond re paid in full , plenty of buyers of the bonds today with buyers paying 90 at the close of the play , great opportunity imo
Chelmo’s analysis is feeble.There is something weird going on here.With a debt LTV of 55% there is bound to be a potential debt covenant default,probably temporarily waived.Or not.No Board with any brain would pay a dividend now if full payout for the bonds was in any doubt.Unfortunately,RGL board is ,in my opinion,not of that caliber.Insiders and fluff.Obviously holding back material information which distorts markets.Bonds are listed.Lets hope that ARA are not complicit in market distortion through lack of material disclosure despite the Inglis philosophy of accidentally omitting financial information which might assist bondholders/ shareholders from understanding the true financial position.Bonds would not trade at current levels if RGL disclosed professionally.Why are they not doing this? They need to be very careful.If bonds are not paid out in full in August, after paying a £6m divi, the capital markets will show no mercy to The Board and their advisers….
Been steadily topping up to my existing position which purchased at issue…as I say secured debt 380 odd so even in liquidation which clearly won’t happen they have portfolio of 700mil so plenty to repay the bond with even in fire sale of assets-
Baldmark see my earlier post below from 19/2
BOND AUG’2419 Feb 2024 12:14
This a very strong buy-85 offered a bargain
1.won’t default plenty of options to pay this, 700 mil of property on books- bond 50 mil
2.roll the bond ( v unlikely) into a higher coupon ie 12+ and then bond still safe
3.even if co folded (won’t happen) receivers sell the assets and bond repaid in its entirety.
Been buying these from 86.5 down to add to my existing holdings- v happy to keep adding as 6 months investment for 18% upside plus the 2.25% interest, decent in anyone’s book.
Am I missing something?
Is there any way that RGL can get out of repaying the full par + 2.25 coupon on the retail bond when it matures on 6th August whilst still continuing as going concern?
Clearly it's an unsecured bond, so in the event of insolvency secured creditors take priority. However we're not currently insolvent and are unlikely to be so by August. Obviously RGL can offer an extension / restructuring / conversion to equity however can they force retail bond holders to accept this (without declaring insolvency)?
I've currently taken a smallish position in the retail bond however have avoided liquidating other holdings to fill my boots since when something looks too good to be true it often is.
Been calling it for 2 weeks it’s currently 87 offered- nailed on to get par in August plus 2.25 % dividend, easy trade here
Surely, they should be buying the retail bond back in the market? Current price difficult to know for sure but certainly less than £90.
Everything is Hunky-Dory on the charting front, after the RNS with 1.20p divi for the Q
chart ... http://uk.advfn.com/p.php?pid=staticchart&s=L%5ERGL&width=600&height=300&p=1&t=1&dm=2&vol=0&cb=
Positive news all round,no dividend cut.....hahaha! Definate long term recovery play.
It’s a positive update and shows that the income is holding up. I think we will see more sales before the annual report is issued, hopefully retaining the core assets which gives them a good base to work from. The equivalent yield on the sales suggests that they are selling the secondary assets at smaller lot sizes which makes sense. Share price might not recover immediately but this is still looking like a long term hold to me.
I reiterate keep buying the bonds- only play in town