Member Info for Etotheipi

I meant just after of the offer RNS.

I'm still in just making less of a loss than before the open offer.

I'm glad to be wrong, sold the additional shares at 13.3p cutting my loses. I just didn't want to have RGL to be that much of a proportion of my portfolio. Hopefully over time the sp will recover.

Tomorrow I would like to sell my 10p shares for 13+p, I wonder if I'll be the only one. Big spread early on and the sp to settle around 10p I guess. I hope I'm wrong.

From the RNS on the 27th June "This will reduce LTV from 56.8 per cent. (based on the valuations as at 21 June 2024 as set out in the Valuation Report) to 40.6 per cent. upon completion of the Capital Raising.". They seem confident that this capital raise will be enough.

StockBoy, your broker might provide ownership data through Morningstar but the best way I've found is searching through the RNSs looking at the holding(s) in company (this site has a filter for that). A bit time consuming but I think it's the most reliable. Great example with ORIT as morningstar shows Sarasin & Partners LLP as 9.94% but the RNS on 1st March shows they reduced to 4.7%, so the morningstar information is out of date.

Secure message re. open offer received from HL. All good.

Well done for reading that far Gerry, this is a big worry as mine are held in an ISA. Another one of my brilliant investment decisions, AEIT, went into liquidation so delisted prior to capital return. As ISAs can't hold private shares ii transferred them to a trading account so maybe HL might choose to do this in the worse case.

I think it depends on your buy price.

So you've got 10k shares costing £5000, say 50p per share.

You buy 21420 shares for £2142, you now have 31420 shares costing £7142. Which is 7142/31420 = 22.7p per share.

Finally after the 1 for 10 split you'll have 2142 shares at 227p per share.

Change the 50p then the final share cost changes.

But if you don't take up the offer you'll have 1000 shares costing £5000 which is £5 per share.

I'm no expert so I should add: DYOR.

Probably wrong but here's the calculation:

Current NAV value: £290.8m

Number of shares after open offer: 1621m

NAV value after raise: 290.8 + 110.5 = £401.3m

NAV per share: 401.3/1621 = 24p

NAV per share after consolidation: 24x10 = 240

I'll go and get my helmet.

Thanks Tiger, I was worried that you might be suggesting ISA holders can't participate. I'm in exactly that situation and will have to sell in order to buy more. It feels like throwing good money after bad but of the options available it looks like taking up my full allocation gives me the best chance of coming out of this even. I think I'll need a post capital raise and consolidation price of 190p on a NAV of 240p, not taking up the allocation the sp would need to be north of £3. 120p would be the same loss as selling now at 15p. If I've got my calculations right.

Will, I spoke to HL trading support team and was told that they are aware of the corporate action and they will notify shareholders by secure message soon. He wouldn't give a timescale.

Tiger, why do you think ISA holders have a problem?

Thanks Gerry, even better then.

494x I was referring to the dividend amount, that stays the same. Pedantically the dividend remains the same but is shared among more shares but if course it is effectively a cut, I was being a bit too literal. Same applies to the NAV per share and the discount.

Penta, I've included the 7 shares for 15 at 10p in the calculation.

404x is 20% vacancy rate horrific?

404x I didn't say the dividends would be the same per share. It looks like after taking my allocation my cost yield goes from 12.6% to 5.5%, although painful, 5.5% yield is ok.

Penta, I'm no expert in this but isn't the issue LTV being too high and adding any more bank debt would increase this which means that route is not an option.

Clearly selling assets didn't work and I'm guessing this was the least bad solution. The nav still remains the same, the rental income hasn't changed so why would the dividend be cut. It's a long term investment where the discount will hopefully reduce over time and the dividends keep being paid. I need to find some cash to buy my allocation.

It's very volatile and needs more liquidity in the market before the sp recovers which probably won't happen until interest rates come down closer to 2% or 3%. The portfolio companies seem to be performing really well. It's difficult to time, good luck.