Member Info for Gerry557

so total for this year will be 8.425p

Regarding the dividend, I think its :-
5.6 pence per share to be paid on 6 November 2020 (cos there isnt a vote in the timescale)
and assuming deal agreed 16.85 / 2 minus 5.6p already paid interim = 2.825 (May 21 year end)
Then a rebased divi of enlarged group at x2 time cover going forward.

Oh for clarity

Nothing in the broker account but I did read elsewhere. (proactiveinvestors.co.uk) that it was oversubscribed.

Maybe they didnt want it all in one go! That begs the question why?

Anyway I will wait for the account update and/or shares n cash

I thought it already was and that looks like the date of the new shares that are being added.

I'm trying to decipher the dividend bit. Is it a cut now (6 Nov 20) or divi as previously advertised and then 50% cut going forward?? I think its cut it now by 50% so thats 2.8p on 6 Nov 20 and a rebased divi thereafter which I havent calculated but cant anyway as it will have Liquidnet bit added. From the RNS :-

"The Board declared an interim dividend of 5.6 pence per share to be paid on 6 November 2020 and, if the Potential Acquisition is approved by shareholders, the Board intends to pay 50% of the £94m dividend currently anticipated in respect of the year ending 31 December 2020. From the year ending 31 December 2021 onwards, TP ICAP intends to target a dividend cover of approximately 2x underlying earnings over the medium-term."

Anyone clarify my understanding??

Looks like the SP dropped to the 131p placing price too. Probably on the back of Mr market looking down and that further placings are likely to be needed going forward.

So they received £400m of the "up to £750m"

So there shouldn't be any scale back and probably another raise in the near future. I suspect this will keep a lid on the share price for a while too.

Will have a look in the broker account tomorrow and see if there is any confirmed update in my account after todays RNS

Well mine are shown as a dummy holding of the amount of shares I requested at a cost of 0.00p

Actual cash has been taken from the account to the value I requested. So far so good. we should know in a week:-

"Should you choose to take up the Offer, the New Ordinary shares are expected to be credited to your account on or after 1st October 2020 with dealings in the New Ordinary shares also commencing on the Main Market of the London Stock Exchange on that date. We will, however, notify you when your account has been updated."

UKW should issue an RNS on the outcome of the placing. I suppose that might take some time depending on what options they have to decide upon.

Your broker should also inform you under the corporate action, again this might take time depending on how quick the placing details are passed to the broker and how efficient the broker is.

From memory I think it was supposed to be in the accounts early Oct and you might see them actually in your account first!

Hopefully some people on here will report back, like you on progress. I might have a look later this afternoon if anything has been updated.

"lumbered with an expensive debenture" and "address this albatross " This contrasts with the comments from the 2015 results :-

"I would like to pay tribute to Howard Stanton. Howard joined us in April 2009 when we were facing some of the most challenging financial conditions the market has known and he has been a continuing support through those difficult times. He played a major role in the tender offer and exchange of our mortgage debenture which has been one of the most significant deals for the success of the group over the last 10 years."

During financial crisis = Good! During Covid = Bad. I suppose what is done is done and they have to manage the plates spinning right now. Will the improving situation save the day? Well it cant hinder although it might revert back to what it was. I suppose stopping evictions for longer is not going to help landlords but maybe some help might be forthcoming in newer policies to be defined. It does seem to be a case of pushing the problem on but it has to stop somewhere. Will it get pushed onto lenders next.

Sanibel, its the placement price that has dragged this down. I did wonder if the market might actually drop it lower than the placing but its holding firmer now. You could have guaranteed getting your holding at the slightly higher price, no fears of scaling back but its over half the quarterly dividend effectively you will be missing if you do. Still you cant sell the placing yet for a couple of weeks until its in your account which is also a factor to consider. I suppose it depends on how much it was fully subscribed, as to any scaling back and or further placings being needed.

I suspect that if more funds are still needed it will act as a drag on the share price going forward until it is completed but you might be right about the effort. At least it was open to all investors not just the big boys. I don't like being excluded!

So after the RNS regarding properties sold, it looks like cash and debt ratios are the priorities looking ahead. To that aim the divi has finally been cut after decades of never cutting (Just like Shell) Its over 50% from 11.75 to 5.

In fact most of the metrics were poor, mainly due to covid issues and it has a snowballing effect. It not all bad news, there is a glimmer of hope. Car parks are now open and the hotel is also up and running albeit at lower levels. Hopefully retail is picking up too. Spike II might put things back again though.

So rental income is going to be down going forward and there is a pipeline to supply so being pulled in many directions all at once. Makes sense that others, such as SREI has been reducing their LTV much in advance although they started this pre covid. Maybe a lower LTV rate going forward might be more prudent but they need to get back to the old levels first.

So its going to be a balancing act spinning many plates. I wonder if some new equity might be on the cards. I thought that previously with regard to the pipeline but now they have even less cash. So how long before getting improved divis? I suspect that it might be a few years away and what does that hold for buying decisions going forward?

Additionally the George Street development has been stopped at a cost/loss of 800K. What now? Can it keep goings as is/was?? Not much hope of a quick increase to the dividend then going forward. I assume more sales are going to have to happen thus the snowballing effect continues but they have to protect the down side. I also note that JD sport and boots get a kicking!

Looking at the market, is not fallen drastically. In fact it risen over today but yesterday the market was knocked on its head quite hard so maybe a bit of relief going on.

NLLeeroy
They have their management charge, for running the windmills which is just over 1%. You can see the detail in the annual report on their website.

Hence why its good for them to keep issuing new shares as the bigger the company gets the more in that fee they can collect. In theory though, its invisible to you as a shareholder as you dont pay it direct its just skimmed off the whole so the SP doesnt rise as fast as it could with that extra 1% compounding. I suppose you could think of it like having to pay the cleaner, it costs something but the company pays it out of earnings not you. The cleaners wage though reduces the overall profit to pay out dividends

As a shareholder you have the share price, up or down to consider and any dividends collected along the way.

The share price is currently lower at the moment as they are doing a placement for 131p so the SP has dipped close to this level. Otherwise we would all be selling higher to buy the cheaper ones. You wont be able to get any at 131p though as you need to be a shareholder already and the cut off for the decision to opt to buy is 20 Sep.

Still, this could get scaled back if too many want the new shares but you can guarantee getting the amount you want at current market price of 133p

I have decided to take part in the offer, so now need to wait until Oct to see how many new shares I actually get.

Just wondering if this will drop below the offer price.

Its not unknown and only needs Mr Market to have a bit of a fit and I think we will be there

In answer to the OP, yes to individuals, assuming your broker will take part.

I have to decide this week which way to go. I'm tempted to ask for a block hoping the SP swings back to previous levels and sell to retain cash for next time but keep the additional "free shares" still if everyone does that it won't work. I don't like buying for a quick sale generally and much prefer to increase my dividend income. I'll have to check to see if this income falls in a month I'm needing to increase overall, that might sway me. Off putting is the above NAV price, chance of only a percentage increment and the fact the SP fell quite a bit recently.

Still I have a couple of divis coming in this week and this is generally a good payer with a growing dividend so might make more in dividend returns than a short term punt on the SP.

That sounds more like my style although growing divis are great until there not growing anymore, or reduced or cut completely.

How to find that balance..... Without falling off

As expected, retail the area struggling to keep up with payments but offset by additional rental income agreements, assuming these get paid of course.

The update looks fairly positive overall maybe I was expecting it to be much worse. The trend in covid not helping much either although shops seem to be better able to deal much better then when the first lock down started. Maybe once some of the zombies go under the remaining companies will become stronger and survive.

Found the following interesting

"The Company has been informed by the independent valuers that the industry-wide material valuation uncertainty clause is to be removed for the next valuation on 30 September 2020"

?????

tickhilltim, I'm expecting a softening of collections over the next six months. CV19 to become more of a player over winter and the economy to suffer again. The Brexit issue is also raising its head too but it too should settle down once we have a direction either good or bad, Just get rid of the unknown.

They are supposed to be better areas/renters so lest see how that pans out. Buyback started so should help a bit too over time ...... unless the share price creeps up too much

Isn't that going off script, losing out so the shareholders actual gain something. Normally it's keep issuing more and more shares at the same level and then saying look we have doubled the size of the company (ignore our increase in fees and if you get too uperty we will reduce the rate once we get over a billion)

Next they will be increasing the dividend because they have the same income spread over fewer shares, whatever next.

Issuing more shares to have lots of capital to buy the stuff others are selling off cheap

We might have to vote out this board if they keep looking after long term shareholders.

Not normally happy with buybacks generally as they always seem to be done when the SP is high and then get stopped when it drops.

Hopefully this will be slightly different and will be done at a discount and actually benefit both company and its shareholders for a change. I think I might actually agree on this one for a change. Proof in the pudding and all that. Should I add a few more too? Off to contemplat.

Any advice on what to be wary of, if anything? - Going bust!

Although I dont think that will happen. With a recession though, many will struggle which could impact on companies abilities to pay and soften rent prices going forward. Im hoping that its more likely that things will start to improve and things will be better than the 50% cut in divis. Hopefully in a couple of years some sort of normality will return.

Its offering a 5% buy yield currently, could it get back to 10% if things go back to normal. SP is at lows and well under 200 day average so I have added some more today. Now just need rents to keep coming in and arrears to reduce and for them to keep some dividends flowing. As rent collection is above divi levels and this a REIT so maybe more to come sooner rather than later