The Lemon Fool

The roller coast ride continues! SP leaps up again from distressed lows. All arrears now to be paid up next April.

The directors announce today that they intend temporarily to defer payment of the dividend falling due on the preference shares on 31 December 2023 but, subject to the agreement for the subscription by the DSN group for further shares in REA Kaltim having by then become unconditional, to pay that dividend together with the current arrears of dividend (amounting to 7p per preference share) on 7 April 2024.

https://rea.co.uk/news/r-e-a-holdings-p ... f01a14c5a/

For the brave optimists who are still in here, the Oak Bloke has cast an eye ...
There’s potential for profit to recover strongly.
There’s potential for net debt to head towards - and potentially arrive at zero.
Should you buy the Pref or Ord? Pref probably. Voting doesn’t bother me, and the 10% dividend makes a welcome addition (and there’s a 10% special in 2024 remember).
This is not advice.

Worth a read.

V8 (no longer a holder)

i have yet to read the detail here at all. This may/may not have any baring on anything but: Indonesia is booking, Asset prices are soaring, Inflation is low, Rupiah is stable etc etc. However a General Election is due next month.......

https://rea.co.uk/news/r-e-a-holdings-p ... 2496d0b28/

The dividend falling due on the 9 per cent cumulative preference shares of £1 each in the capital of the company (the "preference shares") on 31 December 2023 was not paid, bringing the aggregate arrears of dividend on the preference shares to 11.5p per preference share. Subject to the proposed DSN subscription being completed, the directors intend to resolve that such arrears of dividend be paid in full on 8 April 2024.

Still kicking myself for not buying these when they were distressed down at ~55p (see earlier analysis). Once the divis have caught up I will probably look to offload them though. 91p now.

moorfield wrote:The roller coast ride continues! SP leaps up again from distressed lows. All arrears now to be paid up next April.

The directors announce today that they intend temporarily to defer payment of the dividend falling due on the preference shares on 31 December 2023 but, subject to the agreement for the subscription by the DSN group for further shares in REA Kaltim having by then become unconditional, to pay that dividend together with the current arrears of dividend (amounting to 7p per preference share) on 7 April 2024.

https://rea.co.uk/news/r-e-a-holdings-p ... f01a14c5a/

Resolution passed so 11.5p should be paid in April:

https://www.londonstockexchange.com/new ... g/16328828

"Upon full settlement of the immediate amounts due on closing, the directors intend to declare a dividend in respect of all of the outstanding arrears of dividends on the preference shares (amounting in aggregate to 11.5p per preference share) for payment on a date to be determined in accordance with the London Stock Exchange’s dividend procedure timetable. Accordingly, payment of the preference dividend may be expected to be made by 15 April 2024."

https://www.londonstockexchange.com/new ... m/16354282

Confirmation that the arrears of 11.5p per preference share will be paid on 15 April:

https://www.londonstockexchange.com/new ... s/16382220

Hopefully the June coupon will be paid on time.

The Oak Bloke has some warm words.

Given there’s 9p of 2024 dividends still to go, this pref should yield 25.6% to shareholders in 2024. (11.5p+9p/80p ask)

Meanwhile not only is there potential for profit to recover strongly, as price recovers and the crop grows in value through sustainability, but big chunks are being taken out the debt - further boosting profitability.

V8 (sold out long ago)

've been holding these since mid-2021, I also hold the 8.75% 2020, which got the maturity date and coupon rolled later and higher, so I was interested in his article.

There's been the obvious ex-div fall off today, but I might have another look at them if the price falls off a cliff edge.Although it appears to be settling out c77p

The Sterling bonds are still on offer just below par with a 12% YTM.

I also read the IPO one's as I've been buying those monthly for some time.

88V8 wrote:The Oak Bloke has some warm words.

Given there’s 9p of 2024 dividends still to go, this pref should yield 25.6% to shareholders in 2024. (11.5p+9p/80p ask)

Meanwhile not only is there potential for profit to recover strongly, as price recovers and the crop grows in value through sustainability, but big chunks are being taken out the debt - further boosting profitability.

V8 (sold out long ago)

RE.B actually went ex-div on 28 March (when price fell from about 92p to about 80p ask) so the 25.6% return stated in the article is wrong. Those buying now at 80p will not receive the 11.5p divi.

This is what I have in my file for RE.B, RNS dated 18th March '24:

"In line with that intention and further to the announcement today that closing of the DSN share subscription has taken place and all immediate financial settlements due on closing have been received, the directors have today declared that a dividend in respect of all of the outstanding arrears of dividends on the preference shares (amounting in aggregate to 11.5p per preference share) will be paid on 15 April 2024 to holders of preference shares registered at the close of business on 2 April 2024."

I hadn't intended to buy any more, and that's still the case (unless they dropped significantly and for the long term)

It does show on HL as the 28th March as the ex-dividend date though.

Academic now, but I doubt I would have bought them today expecting to be on the register by the end of the day.

I still have an interest in buying the Sterling issue when I can.

Bloomberg had this article, 25/03/24, "Palm Oil Rallies on Strong Exports and Indonesian Policy Worry"

"Palm oil snapped a two-day drop on optimism that Malaysian exports will be robust this month, and on concerns that potential Indonesian policy changes could limit supplies from the biggest shipper."

As far I understand it, this mean lower prices for Indonesian producers to serve the domestic market.

It's not a new concern, one that's always been in the background.

I suffer from the investing equivalent of Stockholm Syndrome when it comes to RE.B , can't decide if I love or hate them and let them go! Now they have (nearly) paid up I will probably hold onto them and not add any more, until they get trashed again - I've missed two separate opportunities to buy in at sub-60p in recent years.