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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Well its only very recently that Bond Wolfe have put on various properties onto the open market at St Pauls Sqaure Wolverhampton ,Kingswinford. Nottingham etc as a change of tack which will put some hay in the barn
As they undertake very little asset management apart from extending lease terms in terms of refurbishment or redevelopment in market unlikley to be kind in valuation terms the only way they can increase NAV bridge is by letting voids
Rent reviews /lease renewals unlikelly to see rents increase In fact in Crewe its the opposite direction Would dearly like to know how far they have written the value down of this asset
RLE were at their best picking up buildings around Colmore Row , sorting out a few tenants and then either sending the asset back out and producing a real time profit or increase its net asset value Redistributing sale monies as dividends is really not the way to go
Monies should be recycled into fresh stock like the Moorlamds Centre Leek which Bond Wolfe acquired
Unless you think of course that Bassi cant find a good deal anymore
Yes I know sain@vision, you keep banging on about it. But, to quote the company when announcing the last dividend, "... in accordance with its progressive dividend policy, REI will pay a fully covered Q1 2022 dividend of 0.8125 pence per share for the period 1 April 2022 to 30 June 2022 (Q1 2021: 0.75 pence per share)." FULLY COVERED. So if they are able to fill some voids, as we must all hope they are capable of, then that money drops straight to the bottom line for potential distribution to shareholders and prevent further asset sales. Whether that will make the slightest difference to the SP remains to be seen.
"They need to bridge the gap between NAV and SP"
Well what they have done over the last couple of years is to write down the assets in the book . This has now allowed Bond Wolfe to effectively marketing any of the properties which are likely to show a book profit and it looks like they will achieve over £25m of sales this year
This will leave residual amounts over and above loan paybacks for a limited warchest .Nothing too wrong with that but then youhave to look at the quality of stock that remains A collection of ageing old chestnuts in W Bromwich
The only hope to bridge the gap on the remainder of the portfolio is to fill up some voids which is easier said than done
RLE problems stem back to 2105/ 2017when they adopted a scattergun approach to acquistions ending up with some bad purchases none more so than The Market Centre Crewe
"We are richly rewarded in dividends as it is." Rubbish. We are likely to see 3.25p dividend this year but the SP has dropped 6p, so there's been no reward for shareholders. Factor in the effects of inflation and this has been a disastrous investment in the last 12 months.
The Board is already committed to taking action, it's just a case of what action they take. I'm not normally a fan of share buybacks but I don't think a special dividend would be prudent (as you say, there's a downturn coming). A combination of paying back debt (which they are doing) and buying back/cancelling shares seems the logical option. They need to do something to bridge the gap between NAV & SP.
Smegma, on the contrary it’s time for inaction. The asset sales should give a war chest to use for the coming downturn.
We are richly rewarded in dividends as it is. The market is pricing RLE for these dividends to be cut. If the board run a tight ship and prevent that by not returning capital on a whim we will see a rerate in time.
Interim results due here on 29th September. Given the SP has once again trickled down to the 34's I fully expect to see the Board come good on their promise to return capital to shareholders. My guess would be that they will announce a share buy-back, starting in October, but who knows - they surely have to take some action to prevent our investments slowly disappearing.