Member Info for Gerry557

Im happy to continue to chat about HFEL here, that way its in public and if I make any errors or mistakes, other kind posters can correct me. You do come across a bit all pied piperery but then again I do like people who have some puppies to show me!

Im happy to peruse your watch list if you care to share. I think it will be quite interesting and wish I had the time myself

I note that the discount has reduced to zero and the SP has risen to match the NAV. The yield will drop accordingly but it has also been pointed out that some of the underlying shares have increase their own dividend payments. Hopefully reducing this pay out anxiety. As I dont suffer from this I think its best I move on. It was also pointed out to me that a recent change in management also coincided with a change in fortunes of this fund. Maybe others can comment on this.

Ade "You say it but I do not think you do honestly." Im not sure if this say more about you than me. I have never made any personal remakes about you and only tired to comment about fact and figures which you seem to avoid. My comment history is there for all to see and check. I accept you cant see body language on
a thread but it was put in black and white. I will wish you a good day but only if you accept it with good intentions.

Well the 80p price spike disappeared by the end of the day and might have even ended the day lower. Another "spike" early today. Is it going to follow Friday. Im not going to try and work this one out.

Temple

Fortunately, these are in a tax shelter. AAIF or SOI will have to wait until they can be fitted in, which might be soon unless something else pops up.

ade2a.

Several posters have tried to assist you understand why your "opinion" with over distribution was "factually" incorrect. You call these my friends as if we are some gang against you. Remember I have only joined this thread after recently buying. So why arn't they your friends, after all you were here before me. You repeat the coded insults thing again, Im sorry I tried to help you understand the situation.

"If only you and your friends said that 30, 40, 50 posts earlier." What did you think they were trying to do? In so many different ways.

"Are you afraid of different opinions." No but we are talking about facts n figures, income in v dividends out.

A number of people have tried to explain how the yield statement is true but works. You are the only one that has turned that statement into an assumption that HFEL is paying more out in divis than its earning despite all the evidence to the contrary and with nothing in support of your assumption. This isnt about opinion its about facts. You also asked "What else is there?" Cash!

I can only wish you the best with your holdings and hope that you dont see that as a coded insult.

Well something has let the cat out od the bag this morning! Some big buyer or news somewhere, Im not sure but its not helping me get any more but a second divi payment helps.

I could get used to monthly payments.

I read about lxi reit yesterday, buying nurseries. This gives a yield of 5. 5%. I suppose it puts the deal here in some context or is this more risky.

Ade2a, yes because we understand that the yields in the underlying shares are different to the yield on the fund and not comparable, common denominators thing remember. Clearly you don't understand that. That's why we agree with you that the saying is true but pointless. As several posters have tried to explain to you, myself included.

Personally I'm not bothered about SOI's over distribution, clearly that what the reserve is for. TR v Income is another ball game.

As for EMH, yes

longtimeinvestor, I hope I get the same level of dividend increases for the next decade. I liked the increase in income and that it was adding to the pot. I might have a look at AAIF though to see what it is doing. SOI and HFEL holds some of the same shares in the top tens.

Share price was picking up too

Its on my radar too, wasnt sure why it dropped so much today. Being greedy and hoping for a bit more

Ade2a, The distribution isn't more than the earnings though. You appear to be using the term yields to try and justify that it is. Hence why I said use cash figures for both.

I'm not sure what the coded insults were meant to be when I explained why I picked this fund over the other 5. No offence was offered just trying to explain my reasons when the other 4 funds had a better 12m record.

"Of course the yield tells you what you will get per £ invested at that instant."
Not of holdings you already own, only those you buy at that instant.

You are free to have any opinion you like, we can even agree to disagree. It's better to deal with facts n figures so it's easier to establish where mistakes are being made. I often learn more for people with an opposite stance as it gives me more to ponder.

You are not worried about SOI's over distribution then?

Guitarsolo

I think it would just be a guess on the final amount for the dividend. Personally I would be looking to reduce the LTV but they are constrained by the rules on pay outs to remain a reit. 90% of profits from memory so it doesn't leave much wiggle room. Rent collections have been improving, although again from memory, maybe the last divi wasnt fully covered but expected to be in time, or am I thinking of another.

The LTV range guided is 40 -50% so its well within that range. Its another question if that range is too high! There is a bond due too in Aug 24 but I assume if rates are kind it will get rolled over or refinanced.

Dividends were 8+ pre pandemic so there should be an expectation to get back to that level if not now then next year assuming rents continue to improve. Ill take you seven then and if its anymore it will be a cherry on top.

New shares should be issued today and I assume the extra earnings kick in too. There is an update soon, it might indicate how things might go.

7 cents ,,,,,, typo

Why not go to the horses mouth?

9 cents on 30th Sep 21 Ex 19th Aug

There is only two payments this year not quarterly unfortunately after the PRA intervened.

You have to bed n isa any purchases via the app

I dont think I can be bothered with all the faff and Im not sure I want to buy them anyway. Last time they fell lower than the placing too. Hopefully Mr Market might help me instead

"This Edison link is the only one were I quoted the yield at 4.8% current and 5.2% forward written by HFEL themselves."

It was commissioned by HFEL not written by them. Edision look at HFEL and analyse them and make their expected case for the future.

As for which is better investment, there are x5 funds in the sector. Looking at the last 12m I would say AAIF with this one last. Does that mean it will be the same in the future? I wanted high income from this sector hence I picked this but I also looked at the others. This being on the low side helped That is not to say I wont add others.

Websites often make mistakes because they dont get updated in a timely manner. Some are also forward looking and some historic, hence even yield figures can be apples and oranges so you need to check what is being quoted and how it was calculated. Remember me asking earlier about future payments dividend expected payments that Guitarsolo so kindly gave feedback on.

Dont let the yield tail wag the dog.

I think the mistake is to look at "yield" and work back words. You need to compare the actual dividend in pence against the spare price you actually paid. In my case I have x3 different yields for HFEL as I bought x3 lots at different prices. These will be blended to make a whole amount holding at my average.

This is my buy yield on the amount invested. If HFEL's share price doubles the yield will half so 8% to 4% but my dividend remains the same in cash terms. If I want to buy more I will only get 4% going forward on the new ones but my already held shares are still earning 8% as a running yield on the invested amount.

As a long time holder you will have seen the increases in actual dividend amounts so your running yields will have increased over time. Capital amounts are different, some, who have bought at higher prices might be underwater (mine included albeit only a small amount currently) This is ok if you want to reinvest your dividends as you are buying more shares but not good if you want to sell.

Ive not looked in detail but assuming you can only buy through the app and not in an isa. I will look closer tonight.

I suppose it will drag the SP down towards the placing price. The question is do I want more at 124? When its not really doing much for shareholders but great for management and its commission based on size.

Chunky deal done and an interesting make up. New shares, cash and new borrowings taking the LTV to nearly 44%

This will provide a 7.8% yield and earnings accretive. Im quite impressed with this bit of business and the market likes it too with the SP moving up a couple of percent.

I will assume that the majority of buying will settle down for a bit now except for recycling the tiny bits of none office that gets sold off. Im not sure how the lock in will affect the SP in the future, there might be some dips around that time if they sell the lot. Something to keep an eye on.

Looking at the last report for SOI which was the other fund I was considering too and which you mentioned, its earning didnt cover its dividend payments but the yield figures are fine!

"Total dividends declared in respect of the year amount to £27,832,000, which is £1,295,000 more than the £26,537,000
revenue profit after taxation, available for distribution. Accordingly, the Company would be required to draw on £1,295,000 of brought forward revenue reserves. However in accordance with accounting standards, the fourth interim dividend amounting to £12,432,000 will not be accounted for until it is has been paid."

More evidence that cash is a more important metric than meaning less yield metrics.

Again Im not concerned by this as hopefully its a blip, that also increased the dividend too!