Member Info for Gerry557

I wonder if the spread will narrow post consolidation.

Sorry to see you leave Etotheripi but you have to do what's right for you at the present time. You can always pop back and say told you so! :)

I'd like to think that over time the figures will improve. Share prices tend to fall generally with placings like this then slowly revert back.

Your 30% gain will be offset by losses from having held the shares previously and will likely keep the share price depressed until all those thinking like you are shaken out. There might also be a few who don't want the same captain of the ship in charge and also take to the lifeboats.

I'm going to give it a bit more time to see if the "stronger" company can move on a bit more and if Bridgemore can lean across and push the tiller a bit more in the right direction.

I would be amazed if it goes back to 10p/100p though.

He gets some facts wrong, the number of shares in issue and mixing pre and post consolidation numbers.

Apart from that it was interesting

Kentio, the only thing published in the prospectus was a 2.2p quarter post consolidation. People are assuming that means 8.8p annually which may or may not be the case.

They also plan to sell a large number of properties which will reduce the amounts available for dividends going forward. As highlighted the cash amount for dividends appears to be half that than pre announcement of the new shares.

One has to hope that they can use the cap ex to increase the overall income and reduce voids

RT003

The cash has probably disappeared to fund the new shares. You might have a line in your portfolio with a similar name to highlight the offer. I expect to see the new shares on Friday or early Monday depending on how fast the broker acts.

It can't be over subscribed any shares not taken up will be taken by the placee

Its Friday when the new shares are issued. You might have a place holder note of the placing though.

They will be above a pound by the end of the month so your 2-3 year time line to fall back to 50p range looks like it might happen especially as we have the same captain driving the boat. :(

Hopefully lessons have been learnt and the price wont fall below the consolidated discount placing price.

They only had 135 properties to begin with and it sounds like 54 are likely to be gone soon. it doesnt state which ones or the size compared to the rest of the portfolio but it looks like a big enough chunk to affect dividend levels going forward.

I think that making a loss for a couple of years combined with voids increasing and the sale of property will have an impact of the level of dividend going forward. Have you accounted for the planned property sales.

The Company is currently engaged in an asset disposal programme with a view to assisting

it to reduce its LTV to its long-term target of less than 40 per cent. Since 31 December 2023,

the Company has completed 13 disposals and 3 part sales for a combined total of c. £21.9

million.

Currently there are:

 2 disposals contracted for £1.4 million;

 7 disposals totalling c. £15.9 million under offer and in legal due diligence;

 4 further disposals totalling c. £6.5 million in negotiation;

 14 further disposals totalling c. £18.9 million on the market; and

 29 potential disposals totalling c. £69.8 million being prepared for the market.

You are adding 1,105,149,821 new shares to the current ones hence more shares. I think its 3x more than current levels

The Consolidation will reduce that bigger share count assuming it goes ahead. If it doesn't then the divi wont be 2.2p for the quarter but will be 0.22p.

The consolidation is more about bringing the share price back into pounds rather than pennies. It doesn't change the value.

Remember this is about stopping you from being wiped out on your original holdings, its that bad!

It basically because there will be a lot more shares after the event but the same money available to pay dividends.

Results of the Capital Raising announced through a Regulatory Information Service

by 7.00 a.m. on 19 July

Admission and commencement of dealings in New Ordinary Shares

8.00 a.m. on 19 July

CREST accounts credited with uncertificated New Ordinary Shares

19 July

Share Consolidation Record Date

6.00 p.m. on 26 July

Admission and commencement of dealings in Consolidated Shares

8.00 a.m. on 29 July

You might be better looking at the actual numbers of the consolidation rather than another website that you dont know how it works or where it gets its data from.

Currently the yield for RGL is showing as nearly 32% on this site, do you believe that?

Yes you can loose a tad, often because the numbers dont round up so you lose a fraction or given the cash equivalent. I think its the former in this case

Chard_Nick, I don't know what your experience's were. Maybe you could share some.

The Consolidation is neither here or there. 10 x 10p or 1 x a pound the value is the same

On your second point the dividend will be 2.2p for the quarter after this event is finished so you can assume 8.8p annually. This will be from a company than is in a much better position than previously. No immediate call to pay debt which will be at 40% LTV so not needing to force sell properties and working capital to bring in more properties into income producing assets.

Yes your original holdings have taken a severe haircut in both capital and income. I suppose the next question is what those 10p shares will be worth a bit later on and if they can grow a bit more of that hair back for you. Bridgemere are happy to take them all for 10p! Why is that?

Yes there are other REITs I think SREI is probable better one or something else completely that is up to you. If you think the 10p shares are going to be worth more later you could take them and sell on into the rise and still buy something else.

If you think there is nothing further to be gained then you got out early and congratulations. Personal circumstances will also play a big part. Not having funds available, not having room in the ISA other commitments on your cash, like buying a house.

I was even wondering if buying more on the open market in addition to the offer might work out.

As this was the "best option" and paying off debt on a 3.5% yield yes things are bad.

One can only hope that "lessons have been learnt" and this is the bottom.

Shareholders should note that, if the Capital Raising completes:

 the Placee could hold shares carrying up to 68.2 per cent. of the voting rights of the

Company.

I suspect that that figure will reduce depending on how many of us take up the offer. I suspect the larger holders have been involved with discussions anyway and have probably agreed but Ive seen comment from PIs who cant or wont take up the offer and there is no surplus agreement if you wanted to have more.

HL does say Estimate and likey from previously published information so I would go with the later info just published.

Well new purchases on the open market looking like the yield is over 7.5% now going forward.

As for Bridgemere, it will be a lot more than 10% as they have waived the takeover which hits at 30%. My concern is that they might take if off listing. I think they might hold 70%

How did you get NAV at 61p?

The figures in the prospectus from memory were 56.4 or 56.6

This won't be temporary but it should be in a better condition to move forward.

Arguably the yield might have been zero if something hadn't happened. See the reasons given in the offer. The reduction in yield would have probably happened anyway as they were trying to sell more properties to cover the bond and reduce the debt. Thus less income. Now any income will have to be spread over the increased number of shares.

There is potential to increase the dividend as they can use the cap ex to improve some of the property and get it earning an income. I'd like to say this should be the low but having hit the rocks once I can't be just if they will point the boat straight back.

Currently the share price is dropping partly because of those selling to fund the offer plus a lack of support as people can probably buy the offer so don't want to commit funds now. The question is how low will it go and when will it be good to buy normal shares.

Just remember the deadlines and getting "cleared cash" if you sell the day before you might have left it too late with the T2 trading times.

Sell early enough to meet your brokers deadline allowing for the cash to clear

You are correct about diminishing incentive but even selling at 13.5p and buying back at 10p is probably better unless its a small holding. you would only have the selling costs too.

As for the consolidation, its doesn't really change things. its 10 x 10 pence's or 1 pound note. the result is the same but its easier to fit the pound note in your wallet. ...... ok Im going back in time with that example :)