Member Info for Sanderling

Yield near 8%, (fully covered dividend)

a discount of 25% to nav

Modest gearing

Inflation linked rents

Chance of a takeout (like Civitas)

IMHO this is very attractive and my initial target of 80p looking very conservative

STN- they sell out at a profit way under real value

Thank you for the responses on this- I raised it because retail investors can often be fickle with the value being stolen by others

Despite the strong performance, the market cap is arguably still quite modest relative to potential- surely now would be the time to make a bid whilst the shareholding base is quite fragmented and before institutions come in. Would a bid at 60 succeed?— maybe yes given that many have got in at levels under 20

I have held Mkango for some time and have been following events at MKA and the extremely bullish comments from some on this board. What I fail to understand is that if the outlook is such a slam dunk, why has no-one come forward to take the company out? Vitol would be the obvious candidate?

Decent interims

- Dividend fully covered last 6 months

- NAV held up at 112.38

- Rent collection improved to 93.3% last 6 mths

- Labour govt supportive for the sector

- Fitch credit ratings affirmed A- ie strong investment grade

- IMA review coming soon

Very cheap in my opinion- first target 80 where Civitas was taken out and could go higher

Agree that gilt yields may well fall which would be an underlying positive for valuations ( all else equal)

Also I don’t think SOHO has ever recovered from the Home Reit saga and SFO investigation. TP may not be great managers but think the downrating was overdone

Dividend now covered on a current run rate basis so a good yield and decent chance of a significant narrowing of the discount

SD, from memory, Civitas was taken out at 80 which was sround a 25% discount?— a 25% discount for SOHO would give a 30% uplift from here so lots to go for

The rating is strong investment grade and could be resolved downward but most likely to A minus or Bbb+ - still good . Regarding the valuations, 10 year gilts are 3.9 which is slightly higher than the end 23 rate but not likely to result in a significantly lower valuation in my opinion

A couple of things- the end 23 Nav is 113.76. I couldn’t find an updated nav so not sure where the 129 came from

Second , the nav is based on a discount rate of 7.2% not the gilt rate ( p60 annual report)

For an A rated credit this is conservative and it seems that sales achieved have been in line with valuations

SOHO seems to offer incredible value at these levels and investors like Cheung Kong who took out Civitas must be looking closely

I’m not sure this will impact SOHO as this is not conventional social housing- it is focused on vulnerable people where the demand is high

It was positive that Fitch affirmed a strong investment grade credit rating- worth mentioning that they have access to non public info

STT, I don’t often comment on these chat boards but you seem to be fixated on CF’s share sale. I’d suggest he needs the cash for other projects but more importantly remains in pole position to benefit from the most likely endgame- a takeout of Hvivo- either a board position/options / both in the newco

You don’t need to repeat that CF has sold his shares

Stt, on reading the RNS JP have 47 m exposure across their funds including 12.7 m equity swaps plus they have room to add

They are clearly very positive and their analyst and pm’s will be all over the company

Also,equity analysts do not operate in a vacuum- they talk to other analysts and as the market cap grows this will likely get on the buy lists of other asset managers

Saw the JP Morgan Smaller Companies Investment Trust has 11m shares- approx 1% position in a £280m gross assets fund- may also be in other JP funds

Good news👍

It’s a tricky one Pokerchips- you are probably right, AIM is a bit wild west
I just wish the FCA would get their act together on issues like insider dealing and regulating share issue processes

Razor, I think you are wrong on this- it is a very fair point that the Directors have chosen to be paid in salary (both around £1m) rather than shares.
This is a great growth story that is being ruined for ordinary investors by governance issues like remuneration and the cycle of dilutive placings

Yes- currently trading 30 but havn’t tested in size!

Pokerchips, the dilution itself is not so much the issue- many retail shareholders may not have the resources to put more cash in. The issue for me is the forced dilution- ie disapplying pre-emption rights in Resolution 1
I am personally convinced that the money will be used productively and feel that I should have the right to buy enough shares to maintain my % at the placing price rather than have some existing non- holders come in and take that upside away from me.

Lottie, Yes a rights issue would be a bit messy but could be underwritten with institutions taking a fee and picking up any residual from existing s/h demand
There is clearly some debate on this and am personally not fully convinced about management—but my view is that INFA has exciting potential However, if we continue down this cycle of dilutive placings, the benefits will fall to management, institutions and favoured shareholders with medium/ long term retail shareholders getting continually left out .
Plus was interesting to see the sp dip in the run up to May 4– feels like insider selling
The only way to break this is to vote against— There is clearly demand so the funding will get done either way despite the company warning.

Poker you missed the point- I am not complaining about the fundraise I am complaining about the dilution.

Tango, I am not convinced on that- HL for example is partly retail