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It seems odd to me that a company with only a 15% holding is allowed to have one of its people as non- exec chairman.Surely this is a conflict? How can he act independently when Abicad may have a different agenda to what is in the best interests of the majority of shareholders?
This company generated report has been out for a few days.All useful information.Interesting to see that an update on the bond refi is expected before the year end.Until this big uncertainty is resolved hard to see the shares moving up.
As grim as expected.Board still fixed on the spurious argument that properties can be sold at major discounts to NAV because the share price is less than 50% of NAV.The deflated share price reflects the fact that the market believes the portfolio is still overvalued.PSDL is a distressed seller ,as are many others.The priority of proceeds from asset sales ,after ensuring adequate cash liquidity,should be to reduce debt. And improve LTV.Nonsense to make any distribution to shareholders until then.Or even float the idea.This company needs to batten down the hatches and be patient or be taken over/ sold asap.
Etotheipi, your comments about who runs the show at ITs are naive.All ITs are run by the fund managers.They hire the original NEDS.Unless the NEDs have bottle they rarely try and remove the fm.Having Inglis on the board means no one plots against him.FMs do not want NEDs.The structure just requires it.Not seen the Winterflood report referred to below but if accurate then you will soon see if there is a large yellow streak running through the NEDs.
About time we heard something?
Shot- you have just discovered the common problem with investment Trusts.Boards are usually puppets of the management company.They are put together by the management company.Do you expect them to hire people who will disagree with them.In this case Inglis is also on the board.Happens,but is not that common.It is rare that these boards have experience of dealing with problems.An outsider or two need to be appointed.Institutions should be pressing for change with ARA who recently bought Inglis’s business.However,if they sell £50- £100m of assets near NAV I will be very happy.Or refi the bond at less than 10%.The longer the silence the more the shares will dip.Never mind it is a great yield ( ha ha ).
Absolutely.But unless office values rise substantially, how do you get back to 40% gearing without selling ?
The longer there is a delay in good news,the more likely the SP will drift down.When will we see directors/ PDMRs buying shares as they did in Aug 2022 ( in the 70s)? Material asset sales required to reduce debt and pre- fund the bond maturity.Remember all the bank debt is secured ,so proceeds first applied on the bulk of assets to the ring- fenced facilities.There is a leverage issue,but in the near term the liquidity issue is a priority.Unfortunately ,RGL is a clear desperate seller,which cannot benefit asset prices.But maybe there is an institution out there who will stick in expensive debt which ought to have a very positive impact on the SP.
Correct bond.I bought at under 94.5 on Fri.YTM 10%.
Do not invest in anything you do not understand.Warren Buffet?
The yield spats are misleading.DYOR.
Want to gamble go for the shares.DYOR .
If you believe RGL will survive,then the bond with 10.5 months to maturity could be bought on Friday on 10% yield with no risk to your capital.DYOR
Do not invest in anything you do not understand.Warren Buffet?
The yield spats are misleading.DYOR.
Want to gamble go for the shares.DYOR .
If you believe RGL will survive,then the bond with 10.5 months to maturity could be bought on Friday on 10% yield with no risk to your capital.DYOR
BCPT interims on 14th ,section on portfolio performance , worth a read.
Doesn’t say much about their Finance support team if they haven’t got the numbers right yet….
In theory,the Board has control of the company with the detailed operations handled under contract by the asset manager.The board ,in theory, is independent from the asset manager.However look at the make up RGL board.The new senior independent director has been there 8 years.Inglis is on the board.Two NEDs recently stood down.And the chairman equally long standing.So,they will all be running to cover their ars*s and be looking backwards rather than forwards.So get Inglis off the board and put in a new chairman who can run a trust paralysed by too much debt.That board should get rid of Colliers and get a second opinion.(Any potential new lender will use their own valuers). Refinancing the bond does not address the core issue of too much debt.Unless new equity is injected . Probably £100m of assets have to be sold to pay off the £50m bond and give some breathing space.Trophy assets are the easiest to sell and likely to have the least damage to NAV.Let’s hope the institutions get to grips with ensuring the cosy club here is replaced with proper governance .
A muted set of results.Inglis has been far too slow in realising meaningful asset sales.Still long on bs though.Rent roll broadly unchanged.No it isn’t it is down £2m:3%.Cash balances are noticeably down and undrawn bank facilities minimal.Liquidiy is being squeezed.Big sales required in the next few months.Enough to pay off the £50m bond at least and get gearing down to sensible levels.Obvs,income will drop and presumably the divi.Agree with 0715 caution re accuracy of asset values in 3rd quarter.
So,it is ok to sell assets at a discount to carry value because the share price is significantly below NTA? Have you ever heard of such brainless logic? Unless proceeds are applied purely to buy back shares when they are at an even greater discount.Not for divis etc etc.Which way is the share price going to go when this sort of woolly thinking is being spouted? Not upwards for sure.Either the board sits tight until the recession is over or it should get shareholders out in full asap.
Portfolio down valued by 12%+.Is this enough? No mention of debt.On assumption only minimal reduction LTV now in 45-50% range? Best statement is the outlook section: “ Given that the company’s share price remains at a material discount to NTA,disposals at a discount to carry value are under consideration.Any surplus cash generated over amounts required to reinstate dividends on a sustainable basis will be returned to shareholders or used to reduce debt levels”. IMHO a reflection of the muppets who run this business.If assets have to be sold at less than the carry value it means they are still overvalued in the funds books,surely? Why make this statement publicly? Looks desperate.And surely significant cash inflows should be used to de- risk the fund by paying down debt,otherwise leverage ratios will come under pressure.Where are the institutional shareholders? Board needs to be gutted and some commercial nous added.Selling the whole business at NTA should be the starting point…..whatever the real NTA is.DYOR
Maybe? Weird approach to take.And why will it take so long?
First step should be to sack the useless woman chairing this ‘sh@t show’ and the rest of the board.Then sue the non- payers of rents,Where are the feeble institutions in all this? Needs some hard- hitters running this business.
Value will be revised next month.reduction of 10-20%? maybe more? Kitchen- sink approach? Directors not been selling assets because the discounts considered too high.Maybe reality is sinking in.If you want to sell in a buyers market you have to be realistic.Proper independent valuation of what properties would sell for now is required.And it will save face is assets are sold at book value.Debt LTV now at 40%.( from 34%).Well below 67.5% covenant ,but not as conservative as board is suggesting,particularly if valuations continue to fall.DYOR.
First rule of NEDs: ensure that distance yourself from blame for everything.Tick.Let’s hope the boys in blue have been set on the advisers and the lawyers are not far behind.