We would love to hear your thoughts about our site and services, please take our survey here.
Still High risk.Nothing has changed.Assets overvalued.Leverage at dangerous levels.No news on bond refinance.Get real.
If you buy the bond at 91 you get 100 at maturity ( ie 9 point gain ) plus interest at 4.25% pa for 9 months on the nominal principal but as you only paid 91 you get a 9% enhancement on the interest .Running yield is c 4.65%.
Oops.Got sums wrong.8% discount.
15% discount to NAV.Too wide a gap?
You cannot just rollover a bond.You might offer a new bond on better terms.Existing bondholders not obliged to accept.You will not find many IFAs recommending unsecured bonds to support a business trading in offices in current environment.Refi by non- traditional lender more likely.Or Needs big asset sales to repay.Seems very unlikely at the moment.Latest sales just a drop in the ocean.
3% drop in NAV but at 108p still far in excess of share price.Divi is covered .Currently 9%+ yield.Cannot see why board/ manager is concerned about share discount.Market will adjust both when interest rates come down and the MySpace agreement is in place.Leverage at 38% is just about acceptable.Only reason for them to worry is that they might get a bid which would see them all out of a job….meanwhile unless you want to sell shareholders are sitting pretty.
About time this business was sold to someone with the resources to accelerate the capex programme.
Norfolk House was in the books at £15m at Dec22.Good news can never harm.ARA might be kicking Inglis into being more professional about investor communication.The situation will be desperate until they announce a refi of the retail bond imho.
Good news on letting all the vacant space.And with long leases, probably more readily saleable to the institutional market.
Anyone know why he has gone after less than 12 months in the job?
The bond was issued 6 years ago when the market was more favourable and was targeted at the maturing zero holders who tend to be PIs. RGL was seen to be a much safer bet than now.The bond is pari-passus with all other normal creditors.Savvy lenders like to ring- fence their risk with specific security.In todays market no one would try and market a unsecured bond to retail investors unless with a massive coupon and with some demonstration that the Manager is capable of reducing leverage required.If asset values continue to fall life will get harder.WAULT of 2.8yrs .
Yet another fine mess.About time there were some personnel changes here.Board is clearly not up to the job.Where are the institutions to get in some quality NEDs to cut heads and costs?
Apples and Pears.
RGL has fallen because institutions do not have confidence in the strategy of the board ,the solidity of the asset values,the excessive leverage in a falling market and the apparent inability of the Asset Manager to recognise that there is a problem…..
In April,ARA part of a Singapore Group with $150 billion AUM ,bought London and Scottish with £1billion ( and falling ? ) AUM as their first step outside the APAC geography.Does RGL account for £750m of that figure? So your flagship European fund share price has halved since you arrived- what would you do ? You are seriously embarrassed.Feeling a fool to buy the 2023 biggest dog reit fund manager?
Surely you would bring in an outside independent UK real estate professional to the Board of RGL to boost confidence.Remove Inglis who dominated the Board with his presence and certainly remove the chairman who has been there far too long to be “ independent”.Put in your own man.And all of you look very hard at the current strategy of RGL which is based on the Inglis “ Trust me I am right Philosophy” apparently without any checks or balances.
Just my thoughts on how to get the share price up.DYOR.
Inglis would be guilty of blatant insider trading if any deal appears which would benefit shareholders generally.So do not expect any significant positive developments in the short term.
Inglis buy means nothing.It is his firm that has got the fund into the current predicament .Not a man renowned for accepting he had made a mistake.Fairly typical of the optimists in the property sector.Share price going down on the news reflects how the market reads it.And he has a big pile of cash from ARA to burn. Good ARA making a mark .But it must do more.Getting Inglis off the Board would be a good start as would bringing in fresh faces who are not linked to the failures of the existing Board.Clear- out required.
Good first step.Now get Inglis to step down from the Board and put in an experienced property troubleshooter who can be “rigorous ‘ with the managers.
I am relatively new to this board.I am concerned that recent contributors have not got to grips with the outrageous behaviour that is being supported by the Board at Bree.Why should you listen to me? I have been an NED on two listed funds boards.
Amateur idiot,get an education.Abicad bought shares not the chairman.
This is a bear- hug.The people buying shares have the benefit of inside info from their planted man.The LSE and FCa should not permit this insider abuse.But manipulative investors now how to smarm our feeble civil servants.Why should you care? Abicad will bid to take over the company within the next two years.DYOR .Do not believe a word anyone hiding behind behind a Limassol tax shelter.And SRC is a far better managed company in the sector.More DYOR.
Dartron,my point exactly.Huge fan of directors having a meaningful amount of their cash in shares.But cumulatively not enough to exercise meaningful control.The chairman will undoubtedly have detailed inside information and will be heavily involved in strategic decisions.It has to be a conflict when Abicad are buying shares.Where does his primary responsibility lie? This sort of conflict is unfortunately a feature of aim shares but Breedon has grown out of that.NED on the board at 29% is reasonable but not a non-exec chairman,in my opinion.
You could buy at under 93 today :YTM of c13%.As only 10 months to maturity,fall reflects not interest rate moves but holders lack of confidence that Inglis can deliver.Let’s hope that ARA can bring in some funders from the Far East.And institutional shareholders get him off the board.