Member Info for Gerry557

"As an added question I wonder what you all think about some M&A activity amongst our REITs"

There is some happening already. EPIC announced a review of their operations and the latest is they are in advanced talks to sell.

I'm sure a few will be caught out with higher rates that may be forced to sell and with some pound notes selling for 60p I would rule out private equity deals.

Watched the presentation today but can't say I learned anything of significant note.

Things going reasonably well and divi covered even after rising above pre covid levels.

Expecting NAV to reduce slightly before things start to improve. Some small sales expected. Income expected to improve. Highish voids (IMO) but should reduce slightly in time.

Nothing on the EPIC properties but I'd expect that even if they were bidding. My gut is they are not in the running.

Not sure where the good capital growth is coming from.

Well if it turns out to be SREI doing the bidding I will be happy to take shares

Market seems to agree with "closer to NAV" up 10%

Im not sure how this will work. Assuming it goes ahead and all the properties are sold to the third party. I assume the funds will be pooled and returned to shareholders.

So will we get a choice? Details of the scheme so we can vote yah or nay including a timescale. Depending on your average price you might get less back from the offer. Hopefully there should be a return to closed to NAV otherwise why sell.

Tried to view the we cast but it says I need an HSBC email.

I suspect someone has made a mistake

Looked at the headlines only and it looks OK at first sight.

Can't make the presentation right now but hopefully catch up later

Well just when you think things are on the up, Mr Market has his say.

Most of my PF down today, I wonder what caused it to spook. Still I managed to get the LGEN shares I was after.

I suppose its sit back and wait for the dividends now.

"Expected dividend for 2024, makes the div closer to 9.5% at current sp."

I don't like counting my chickens before they are hatched but it's nice to know there are some eggs to look forward too.

Of course dividends can be cancelled or regulator's can tell em No!

Of course I think that is highly unlikely otherwise I wouldn't have added more today. Should go ex divi next month and pay the month after. Still the SP is not great for some reason and Mr Market is dragging down all boats.

With interest rate rises and probably more to come I suppose cash could be being built up and funds removed from the market. A resession on the cards won't help sentiment much either.

I'm hoping autumn sees a change and things get back more normal so might have to advance invest my dividends and build the pot back later.

Having "spent" my LGEN funds on another share as these had risen nearly 10P or so after my failed limit order. I have finally managed to acquire another tranche this morning.

It may take a while to see if I was "clever" or "stupid" with this buy.

Yes the report looked good and the behind the scenes the circumstances were worse than reality. A divi bump helps.

Anyway my LGEN buy didn't happen and the price has risen. So being unlikely to get in there at my wanted price I have decided to spend the proceeds here.

The metrics look good and the share price should follow. I suppose another rate rise might put a damper on Reits again but shouldn't affect this too much.

"I thought this was about LGEN."

The outside world does have a bearing on the performance of LGEN even if you can't really read directly across.

Another up on the opening so it's unlikely now that I'm going to get more shares, for now anyway. A missed opportunity or a lucky escape?

I might have to look elsewhere to allocate those funds.

Zzzz91

1. Most likely

2. No

3. A personal preference. The rate is going to be just over 3% if you buy. The ongoing rate will depend on what you paid and if you think things are looking OK going forward. I suspect some will sell as it might be too low.

If the company can grow and increase dividends as planned others might accept the hit and reduction in dividend income.

Those that need that income could move to other green energy companies such as Trig or Ukw

I struggle with those that drive to a food bank. Can't afford to eat but can afford to run a car. Of course it might be what's left in the tank and no insurance :(

Priorities differ for some but I wouldn't want to swap. I would like to understand the nurse on £35k, trotted out in the strikes, that has to use foodbanks.

No share banks for me this morning opened with a hop, skip and a jump. Looks like I have missed the boat getting more of these. Maybe next month on the next 0.5% rate rise?

I'm definitely stupid, my limit order was close to triggering yesterday but I didn't cancel it and actually press the buy button all for the sake of a penny.

I might watch the start of the market to see if it comes back down with finger poised, probably with a look bemusement that I was too greedy.

I'm not sure who benefits from higher rates. Savers don't if inflation is too high. I might say banks as they can increase the NIM but that might be offset by higher bad debts. Hopefully previous lessons have been learnt and there is more equity or better quality of other debts. Some think companies like this might do better rolling lower paying bonds over.

If inflation does fall then savers might be OK. Remember interest rates have been ultra low, so for some they have never known anything different. All rates have actually done is move back to the average over time.

Unfortunately those on many multiple times salary who have extended are probably worst off. I think some in London were eleven times salary. Triple that after a deal comes to an end and wham! The ultra low rates made mortgage payments more affordable but resulted in higher house prices. Aided by more people chasing relatively less stock.

I wonder how many times salary are now in the calculation mix for new mortgages now with hindsight that rates are likely to rise 1-1.5% over the next year.

Higher rates should hold back shares too until the inflationary pressure is allowed to filter through to prices.

Fish n chips were 21p in 1976...... Time machine anyone.

Yes some people are stupid. How else do you get to the end of a mortgage life on interest only abd bleet you cant afford to pay it off and you will have to sell etc.

I'm not sure what you expect mortgage holders to do now to ride comfortably through this. Not everyone can save as they are already on the limit and whist they maybe able to extend the end for a period what then.

Some might be able to save something, which is better than nowt. LTVs might come under pressure as house prices fall but many are going to end up as mortgage prisoners. Unable to aquire a new one as they can't afford it under the new metrics. SVRs are around 8% which is a big jump from 2.5% on a previous deal. Even those that can fit the criteria for a deal are looking at double.

So how would you plan to deal with this apart from saving £10k per month for the next couple of years.

"Interest rates aren't working."

"Unfortunately changes in rates take a while to feed through. Historically 18m to 2 years. It might take longer now as the amount of people on fix rate mortgages is much higher.

So every month another batch of mortgages come up for renewal and the jump for many in that bracket is eye watering. So over time the increases will start to have an effect.

People are likely to save a bit more so whilst those restaurants are doing well now, next year is likely to be lower. If wages keep increasing and costs then that restaurant will close. So more on the job queue more house repost and the supply chain start to struggle as more restaurants close.

That has a further knock on effect less cars so mechanics out of jobs and the snowball keeps rolling. The whole economy slows and inflation drops.

Pity you if you are the one adversely effected and some could loose all.

Only 33% Have mortgages so it is quite a blunt instrument but the Governor is looking at UK plc not individuals.

If you read the BoE report it breaks down the drivers of inflation and those that are helping such as fuel and energy.

From memory it was food that was a big contributer

Now that rates have been hiked again by 0.5% as expected. The Share price has fallen as expected. I marked another buy under 110p.

Unfortunately there was a faff crediting my account but eventually added another tranche at a smige over 110.

I'm not sure where the bottom will be or how long it will take to turnaround but thought it was worth a go.

I'm off to hide from the tinternet just in case it keeps falling. A quid anybody?

I wouldn't there is no business risk. Power prices are falling, solar isn't as efficient in hot weather and wind is down. Borrowing costs are rising.

So the risks are probably bigger, again knocking the SP but it should get to a better risk v reward at some point. Any inflation adjusted earning could help and there will be pressure for dividends to rise over time. So some good some bad.