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A consolidation makes absolutely no difference except to multiply the share price by the reduction factor in the number of shares. The market cap remains the same (all other things being equal) and does not make the company any more or less attractive to takeover. The only effect is to increase the share price to make the business look less like a penny stock and more a grown up company that’s raised finance is building a serious mining operation. Steps towards main market listing…
4.7% yield plus growth in rents feeding through to earnings and capital growth. Like for like rental growth was 5% in the LTM. Inflation should feed through to rents, perhaps more so on new build that is far more energy efficient given savings in gas bills…
I spoke to HL yesterday and they don’t have access to the placing. Does appear that Primary Bid is the only real way for PI investors to participate. I put an order in for an additional 66,000 shares. Hopefully full allocations will be granted again.
Your broker platform should be able to apply for the shares in the placing. HL have always been able to; not sure about Interactive. We have also used the PrinaryBid platform to buy more (albeit not in the ISAs or SIPPs which is a bit annoying) and it’s always been fine.
Excellent entry point - discount plus no stamp duty.
https://www.londonstockexchange.com/news-article/SUPR/proposed-issue-of-new-ordinary-shares/15402428
GedC - sorry for delay in response. Widening yield means that the yield on which the properties are valued could increase (perhaps as investors demand a consistent margin of return over the risk free rate as interest rates rise). If rates are rising then arguably so should yields. However my view is that the yield spread over risk free / supermarket bonds, is wide enough to absorb some rate increases and rent should go up commensurate with inflation. I do see some risk that inflation outstrips the RPI / SONIA caps on the leases.
Welcome to the board. Attractive dividend yield from well-bought portfolio of inflation-linked assets, along with exposure to a JV with capital value upside. What’s not to like? Risks: inflation caps on leases are below rate of inflation, interest rate risk and risk of widening yields in higher rate environment. However, for me spread over risk free / supermarket bonds gives some protection from yield widening. I also don’t see the issue with the equity raises (as long as you can at least hold your corner) as that’s the only way for a REIT to grow (have to distribute 90% of income), and there’s significant benefits to scale and liquidity. Good luck.
@ivornomoney: that’s not true. Takeover talks are held in private as much as possible. Only on a leak or announcement of the offer are they made public unless a board decides to make tactical announcement to start the PUSU timetable. It is quite possible HZM are running a private takeover code process (where they can approach up to 6 potential acquirers in private without an announcement). Nonetheless, I still feel it’s premature for best value (particularly on Vermehlo) so expect them to get to build start, build progress, V DFS and then see the offers roll in.
Chill Reggie. Documenting and finalising a debt facility post credit approval takes 6-8 weeks in a normal market. We’re not in a normal market so call it 8-10 weeks. Add in offtake and equity deal it’s going to be towards the 10 weeks. I’d love to be wrong and for it to be sooner, but if you’re already getting frustrated, you’re in the wrong game.
5% off yesterday. Leaky much? Pathetic. New leadership needed.
Surely smaller raises are better: less dilution in a NAV growth environment, trading at premium to NAV so good liquidity, less dividend dilution with unproductive cash on the balance sheet, keeps institutional momentum.
The fees relate to the fact that SUPR is an externally managed REIT. Atrato capital manage the REIT and levy an annual charge (paid quarterly) for asset and investment mgmt services. Their fees benchmark appropriately against similar sized externally managed REITs based on my review before I bought. I now hold a lot of these having participated in the last three raises - the performance has been very pleasing (though I was enjoying reinvesting dividends while the share price was so low!). Waiting for what I see as an inevitable take out in two years time - happy to clip the 4.8% dividend in the meantime.
The company can apply for a rule 9 whitewash from the Panel, so an investor can acquire >30% without needing to launch a mandatory offer.
@HINDY: what are you referring to? There are charges that Atrato charge the REIT for asset management services. They are nowhere near 7%, but are set at a reasonable level for the work the manager does.
Your post read like a conspiracy theory to explain a price drop, verging on the de-ramping. I was not intending to upset you.
The functionality for RNS is less important here than the announcement itself, which would be price sensitive non-public information (NPI). If a company is ready to go with NPI and has gone as far as to submit an announcement down the wire, they can’t embargo it during market hours, it would have to go immediately. The process works by submitting on an online portal with option to put it down the wire immediately if market open or embargoed for release, say, at 7am the next working day the market is open if the market is already shut.
@D220: what utter nonsense. No one logs an RNS during market hours for release on another day. You clearly don’t know what you are talking about.
Cora deal off the cards, as HUM have just announced a sale of their entire CORA stake. Looks to be 7.75p so generates c.£2m
RNS just gone live