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RAVP

Gilts, bonds, and interest-bearing shares
GoSeigen
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Re: RAVP

#230399

Postby GoSeigen » June 18th, 2019, 11:26 am

Kenny wrote:What I am not in favour of is a person who does not understand a company's accounts, posting that "there might be a long term problem" when they have no clue.


Well, hey, you don't get to dictate what people post here. If you don't like it, maybe take your toys back to the other place.

GS
[EDIT: I should just add: I have also had my differences with PrefInvestor, but I absolutely defend his right to be able to post "I am a bit concerned that there might be a long term problem". Why should he not be allowed to express his fears, no matter how poor his understanding of accounts are perceived to be?]

PrefInvestor
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Re: RAVP

#230570

Postby PrefInvestor » June 18th, 2019, 7:18 pm

Kenny wrote:If any investor cannot understand a company's accounts, they should not invest in that company.


Well Kenny requiring people to be able to read and understand the accounts of any company they invest in would set a very high bar and would constrain share ownership to only an elite community. I freely concede that it would not include me.

BUT I DO read all the annual reports, half yearly reports and trading updates for all my investments. I specifically look for the following:-
a) Increasing revenue, profit, free cash flow, dividend and dividend cover, NAV - all year on year
b) Limited and ideally reducing debt or LTV
c) For REITs and property companies I also look for increasing occupancy rates and rents
d) Any significant events that might be red flags.

So hopefully I am not totally ignorant (please feel free to think differently, its already clear that you do).

Looking at the March 2019 Edison report RAV has fallen into loss in 2018 having been profitable previously and I am concerned that this might possibly continue into future years. As far as I can see revenue is down, rental income is down, occupancy rates and rents are both up, expenses are up and the company reported a loss due to the property revaluation and FX effect apparently. Assets are up but so is debt. NAV per share is down significantly.

A pretty mixed picture there in total IMHO and I could see nothing (obvious to me) to say that it won’t happen again in the future - especially if the GBP/Rouble exchange rate is poor.

So what with the current Woodford situation I took the decision some days ago to exit from this investment. I still like the company but wont be re-investing here until there is further clarity and perhaps not even then. So Kenny you will be pleased to hear that I now fully comply with your rule in respect of RAVP.

I wish all holders the very best with their investment.

Pref

Walkeia
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Re: RAVP

#238081

Postby Walkeia » July 20th, 2019, 5:14 pm

1 July 2019

Raven Property Group Limited ("Raven" or the "Company")

Conditional purchase of its own ordinary shares

The Board of Raven refers to its announcement of earlier today and announces that the Company has now entered into conditional agreements to purchase off-market up to 106,230,374 of its ordinary shares from two of its institutional shareholders, representing up to 17.7% of the Company's current issued share capital. Under each agreement the purchase price for the shares to be acquired by the Company is 36 pence in cash per ordinary share.

The first agreement comprises the purchase of 72,144,978 ordinary shares from Woodford Investment Management Limited ("WIM") (acting on behalf of certain underlying funds), representing 12.0% of the Company's current issued share capital.

The second agreement comprises the purchase of a minimum of 17,000,000 ordinary shares and not more than 34,085,396 ordinary shares from Invesco Asset Management Limited (acting as agent for its underlying funds) ("IAML"), representing between 2.8% and 5.7% of the Company's current issued share capital. Under the agreement, any purchase by the Company of shares from the Invesco funds is subject to the satisfaction of certain conditions. In addition any purchase pursuant to the contract in excess of 17,000,000 ordinary shares shall be at the discretion of IAML and therefore the Invesco funds will not be prohibited from selling such excess shares in the market prior to the completion of the buy back transaction.

The shares proposed to be acquired from WIM represent all of the ordinary shares in the Company held by funds managed by WIM. The proposed purchase of these shares will be a related party transaction under the FCA's Listing Rules as WIM and its underlying funds are together a substantial shareholder of the Company for the purposes of the Listing Rules.

The shares proposed to be acquired from IAML will also be a related party transaction under the FCA's Listing Rules as IAML and its underlying funds are together a substantial shareholder of the Company for the purposes of the Listing Rules.

Each transaction with WIM and IAML will each be conditional, inter alia, on ordinary shareholders, preference shareholders and convertible preference shareholders passing the resolutions necessary to authorise both transactions.

The Company intends to cancel a minimum of 89,144,978 ordinary shares acquired on completion of the transactions with the balance of any ordinary shares purchased and not cancelled to be held as treasury shares.

At 31 December 2018 the Company reported a Sterling net asset value per share of 48 pence when the Sterling/Rouble exchange rate was 88.35. Since then, the Rouble has strengthened to 80.0 (at 28 June 2019 central bank rate) and the equivalent 31 December 2018 net asset value per share is 65 pence based on current exchange rates. Following the 31 May 2019 tender offer and the cancellation of the ordinary shares proposed to be acquired from funds managed by WIM and the minimum number of ordinary shares to be acquired from IAML, on a pro forma basis using current exchange rates, the net asset value per share will increase by a further 10.8% to 72 pence per share.

As reported in our 2018 Annual Report, the Russian economy and the logistics real estate market continue to improve. The Central Bank of Russia has recently cut its headline rate by 0.25% to 7.5%, market rental levels are increasing and vacancy is decreasing.

Breelander
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Re: RAVP

#238085

Postby Breelander » July 20th, 2019, 5:42 pm

Walkeia wrote:1 July 2019

Raven Property Group Limited ("Raven" or the "Company")

Conditional purchase of its own ordinary shares....


You could have just posted the link: https://www.investegate.co.uk/raven-pro ... 42029857D/

Kenny
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Re: RAVP

#238090

Postby Kenny » July 20th, 2019, 6:07 pm

This is an amazing deal for the company.

Sorry that some people sold RAVP in the low one-thirty's. They will probably wait to buy back when the price reaches 160p before realising that the yield is very secure. Still on a 7.5% yield at 160p.

Right now there seems to be a institution with a buy order in the background because all sellers are being taken out.

Walkeia
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Re: RAVP

#238128

Postby Walkeia » July 20th, 2019, 11:06 pm

I am still researching after coming across this in the weekend press. I am certainly surprised by the agreed sale price; especially after considering the mechanical NAV revaluation due to Sterling Ruble. My personal interest lies more in RAV as opposed to the pref share so I will fall quiet here but i’m considering building a position in coming weeks pre-August results.

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Re: RAVP

#238136

Postby Kenny » July 21st, 2019, 12:59 am

Do please let us know where in the weekend press it was mentioned?

PrefInvestor
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Re: RAVP

#238155

Postby PrefInvestor » July 21st, 2019, 9:28 am

Well the company’s purchase of the WIM & Invesco RAV holdings may well prove to be a clever move, certainly it seems to have caused a recovery in the RAVP and RAVP share prices, though on very low volume in the case of RAVP (only 17 trades all week as far as I can see ?). Though I doubt that spending £36 million on this purchase was on the BODs agenda prior to the Woodford issue and doing so might disrupt their business priorities ?.

Anyway as of 30th June according to the company’s web site, WIM still holds 8.2% (~£11M) of RAVP and a very large 44.3% (~£100M) of RAVC shares. Given that WIM still isn’t out of woods yet by a long way, WIM may yet have to use these assets to fund redemptions. So while RAVs situation has improved I personally do not see them being completely in the clear on this issue as yet. Many other Woodford holdings have been (and remain) severely blighted.

I still also remain concerned over RAVs profitability in their new largely ruble operating format and will be interested to see their results which I believe are due in August ?. If last year does prove to have been a one off then that will allay my concern in that respect.

I had enough angst with preference shares with the Aviva events in March 2018 and I don’t need anymore. I sold ~75% of my RAVP holding at 137 and the rest later at 132 to close my position, which wasn’t large. I sold at a profit and have no regrets and have deployed the money elsewhere. Personally I will not consider investing in RAVP again until I can see that the company is clearly in profit and that the WIM issue is fully resolved.

I genuinely wish all RAVP holders all the best with your investment. I hope for your sake that it pushes on towards 160 as Kenny clearly anticipates.

ATB

Pref


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