Member Info for Gerry557

They have paid down some of the loans. £7.5m in H1 and another £5m in July 23. This was from the Scottish Widows loans. I think it was 3.5% from memory but they were able to do it at that time as the costs worked in their favor.

Assuming we have hit peak rates and we get some stabilisation in values then things should be a lot easier to resolve. The long term was 40% LTV but the target of 50%-40% should be done in a reasonable time

Increases in rents will also help. Doing something about voids might make a bigger difference. The trouble with selling is you reduce earning too

So that is likely to be 72p minus any dividends. Plus some big expenses if the sale doesn't happen. I expect it will get the vote passed as the bigger holders can force it through.

From the circular :-

If Shareholders subsequently approve a liquidation of the Company on or around 31 December 2023, the estimated amount per Share available for distribution to Shareholders in the liquidation (taking into account the estimated costs of liquidation, service provider termination costs and estimated net income in the period following Completion) is expected to be materially the same as the Estimated Net Assets per Share of 72.0 pence, unless and to the extent that any dividends are paid in the period between Completion and liquidation.

In the event that Completion does not occur because the Resolution is not passed at the General Meeting the Company will be liable to pay the Purchaser’s costs up to approximately £1.46 million pursuant to the Cost Cover Agreement, and, in any event, the Company will have to pay its own abort costs which are expected to be approximately £1.3 million. In addition, the market’s perception of a failed transaction could result in a negative impact on the market price of the Ordinary Shares and the Company’s financial condition, results of operations and prospects.

I don't know how you calculate that figure. Looks like it's based on historic figures that have since been cut and look like it will probably fall further until the current debt LTV is stabilised.

Even the new lower figure of 1.2 over four quarters is lower than your figure on current SP. That puts it approx 14% and likely to be cut again as more property is sold.

"This mornings presentation is for the sell side only"

Looks like everyone is selling so open it up!

I note the lack of Investor Presentation but maybe its a bit normal for them. I think I have had to pester them to get access previously. I think they often do one at a later date for investors which isnt great unless Im mixing up my share holdings.

Might have a free morning now unless I can find it

Yes I feel sorry for people in your position. If it kept going, there was no reason why it couldn't, then you could have reinvested the dividends at lower prices and eventually come good.

I'm not sure if the 72p is plus a dividend then less the others. It's a bit ambiguous. Anyway the price now has a ceiling and will stay around this ish.

It might almost be worth buying more at 68p for a 72p return in 3 months.

I'm surprised they took that offer really. I'm minded to vote against but doubt it will change things when bigger holders have already said they will take the offer.

They should have considered buying back their own discounted shares and leaving to do something else. It's a bit of a cop out. I was expecting something closer to the NAV rather than spin a low point in the share price and claim a premium.

I will take the weekend to review.

Https://www.telegraph.co.uk/money/investing/stocks-shares/legal-generals-9pc-dividend-yield-no-red-flag-keep-buying/

I don't have a subscription though. I suspect all things won't stay the same and you won't always be able to reinvest at 9%+

I expect the divi will be higher in 10 years time though unless they go mad and try and buy something stupid.

Anon3

14k off house prices doesn't mean much for most people. Good news for buyers bad for forced sellers such as death n divorce. Even then IHT might be lower. I won't be doing anything different even if the fall is doubled as I expect will the majority. You could be unlucky and be one of the looses if you fall in the crack of circumstances.

Lots of shares looking better investments currently but as always it could get worse before things improve and they will. I've know times when everything is too expensive too.

If it falls below 200 it might fall more but you have to pick a bite point at some point or do you wait for ever. Probably when it's the best time to buy if feels like the worst time plus you have to have funds available.

Can't see the Questor article but it looks favorable to buy at a guess. In fact I'd be happy if the price doesn't rise as I might reinvest even more divis back in here. Is it time to deploy the rainy day fund? It might be raining but it's not a weather bomb..... yet.

I wonder if the "Sell in May" will hold true this year. If so, not much longer to get those shares you need before all the bargains dissappear. Today's worries will be all forgotten in a few years time.

I don't know where the years low will be or what you are looking at on the chart that indicates a SP even lower. It's going down currently so might continue. Usually there is an over swing and it gets silly before Mr Market sees some sense.

The problem in waiting is that you keep waiting as it might drop more. By the time it's stopped dropping..... It's already risen. Hence why I took what was on the table. You pay a lot more for a rosy outlook.

Then we will have something else

With regard to the "dividend risk" at the last update the board issued the following :-

"£947m capital generation with significant dividend headroom4  We are on track to achieve our five-year (2020-2024) ambitions. To date: ‒ Capital generation of £5.9bn (£8.0-9.0bn by 2024) ‒ Dividends of £3.6bn (£5.6-5.9bn by 2024) ‒ Net surplus generation over dividends of £0.6bn5  The Board’s intention is to continue to grow the dividend at 5% per annum to FY24"

So unless something serious has happened with its trading in the last 3 weeks it is looking fairly safe right now.

It's called Sod's Law.

If you don't buy it definitely goes up, if you do buy it definitely goes down :-(

I think the results were generally accepted as being OK, operating profit was down a tad from memory but divi upped.

I don't know what chart you are looking at that indicates more to go. I thought its close to support levels albeit there is nothing to stop it falling through. Unless more like me keep adding.

I think oil price rises possibly adding to inflation and keeping it higher for longer combined with higher interest rates is dragging it down especially in the post divi times that won't add support the same if an upcoming divi was expected. After all you can get over 6% with no risk to capital so many will be ignoring shares.

Mr Market is down too. This should all work out eventually and then the SP might react. Till then it's a waiting game with a reasonable expectation of getting a 9% growing dividend.

Waits for a black swan to swim by......

I missed out on the last dip so I've managed to aquire a few more this morning. It's mainly for the dividends, to increase my holding, to average lower and allow me to invest in other parts of my PF that were reaching close to my personal limits.

Compounding the divis over time should also make up for the lowish SP.

So from that last Rns it's a sell of the property and then make everyone redundant then divi out any leftovers

Did you manage to get your order

Im still struggling with what figures to use for its dividend yield. On past published figures including specials its 103p or 75p without the specials. Previously I was working on 78p based on a 1/3 2/3 split for earlier in the year but that hasn't worked out either.

I think I will use the 103p figure and hope it gets bettered and that specials continue

Most websites put it at 3.5% but mine are 4.38% or 3.2% without the specials

No RNS but according to rumors, it's looking like US Reality Corp reit is the front runner. Not sure that's ideal but probably the biggest bidder.

So much for SREI. Old Standard Life in the mix but they don't like vowels so would end up calling it a "RT" rather than a REIT

How do you get access to the webcast. The RNS mentions it but I can't find the actual log in.

https://group.legalandgeneral.com/en/investors/results-reports-and-presentations

A presentation to analysts and investors will take place at 10:30am UK time today at One Coleman Street, London, EC2R 5AA. There will also be a live webcast of the presentation that can be accessed at www.legalandgeneralgroup.com/investors/results-reports-and-presentations.

A replay of the presentation will be made available on this website by 18th August 2023.