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Ediston (EPIC) - Anomalously cheap & a secure high yield…

SKYSHIP
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Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426193

Postby SKYSHIP » July 9th, 2021, 2:13 pm

Ediston (EPIC) - Anomalously cheap & a secure high yield…

The REIT sector, provided you get the timing right, is the gift that keeps on giving. My last recommendation was for BREI just 2 weeks ago; and that is already yielding a useful profit.

I top-sliced a few at 75.6p; and reinvested the proceeds to top-up my holding in Ediston Property Inv. (EPIC).

EPIC is one of the smaller players with a MCap of just £143m. It is also pretty unique as it majors on Retail Warehouse – 66% of the portfolio. NB: This is NOT Retail. Retail Warehouse is a separate sector – out of town retail parks have done well during the pandemic as they have proved a popular shopping venue.

EPIC at 67.8p trades at a 19.5% discount to the 84.26p Mar’21 NAV. On the 5.0p annual dividend (paid monthly at the rate of 0.4167p) the yield is a securely covered 7.37%. It is the Board’s intention to increase the dividend and will consider the position after the 30th Sept year end. An increase to 5.5p looks pretty well baked in, so increasing the yield to a highly attractive 8.11%. In the meantime we will see an NAV & Trading Update later this month.

If you compare the charts of EPIC against others such as BREI, SLI, RGL & SREI you will see that they haven’t recouped the Mar’20 losses quite as well. There is a reason for this. A major shareholder has been reducing its stake through the Market – a tap seller holding the price down at around the 68p level for the past 8months. They held 14.5% in Sept’19; 10.51% in May’21 and still 6.13% at the end of June – 12.9m shares.

“Since the issue of the shares to Stadium Group in relation to the portfolio acquisition in December 2017, an orderly conduct agreement has been in place over the holdings of Stadium entities detailed above. Although the agreement that the vendor would not dispose of these shares expired on 8 December 2018, Stadium Group is still bound by an agreement to only dispose of their shares in an orderly and considered manner and after providing three business days’ notice to the Company. It is on this basis that Stadium has operated.”

A buyback of that stock is now unlikely due to LTV reasons; and the discount level at c20% would not really impact the NAV very much in that it would only add c1.2p. So the best outcome would be for the Company to find a couple of institutional holders to take the stock and remove the tap. Until then, EPIC is likely to flat-line…but provide a very healthy yield as it does so.

A removal of the tap would likely see the shares make a good move forward. IMO, without the overhang, they should be trading @ c80p.

Gerry557
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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426508

Postby Gerry557 » July 10th, 2021, 6:08 pm

Might give this a look. Thanks for the background :)

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426510

Postby pje16 » July 10th, 2021, 6:09 pm

I'm buying some tomorrow :idea:

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426621

Postby SKYSHIP » July 11th, 2021, 10:03 am

pje16 - NB: If you look at the daily trades you will see that they move around quite a bit intraday. So if patient/lucky you'll see an offer at c67.5p; rather than paying the full ask at the open of perhaps 68.5p...

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426629

Postby pje16 » July 11th, 2021, 10:48 am

@SKYSHIP
Thank you for that very useful tip

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#426956

Postby Gerry557 » July 12th, 2021, 11:15 am

I read the tip ......... after buying :(

So a toe in the water and will follow more closely from now on.

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#427079

Postby pje16 » July 12th, 2021, 4:21 pm

Just bought @0.68525
It has been yo-yoing all day :roll:

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#427222

Postby jonesa1 » July 12th, 2021, 11:20 pm

Managed to get a few at 67.925p, apologies to all other investors, it's my fault if the price tanks :)

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#427363

Postby pje16 » July 13th, 2021, 1:03 pm

The price today has been pretty static, It didn't move at all between 08.30 and 10.50

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#429510

Postby SKYSHIP » July 22nd, 2021, 8:20 am

What a tremendous Update. Had only an 8% allocation, so upped that to 10% this morning. At 68.4p the discount = 21.6%; and the yield on the historic divi of 5.0p = 7.31%.

Maybe I should go back for more!

The sp remains grounded in the light of the continuing liquidation of the Stadium stake. However that will inevitably come to an end; and when it does these will make progress to my 80p target.

Of course, it could well happen overnight if a fund manager had the sense to see the opportunity. Remove the tap; and the sp then reflects reality!

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430017

Postby spiderbill » July 23rd, 2021, 10:13 pm

SKYSHIP wrote:What a tremendous Update. Had only an 8% allocation, so upped that to 10% this morning. At 68.4p the discount = 21.6%; and the yield on the historic divi of 5.0p = 7.31%.

Maybe I should go back for more!

Took a punt on some yesterday at 68.78p, so today's rise to 71.6p was a welcome hint that I may have actually timed one right for a change! 8-)
Fingers crossed and thanks for the suggestion.

Spiderbill

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430506

Postby richfool » July 26th, 2021, 2:55 pm

spiderbill wrote:
SKYSHIP wrote:What a tremendous Update. Had only an 8% allocation, so upped that to 10% this morning. At 68.4p the discount = 21.6%; and the yield on the historic divi of 5.0p = 7.31%.

Maybe I should go back for more!

Took a punt on some yesterday at 68.78p, so today's rise to 71.6p was a welcome hint that I may have actually timed one right for a change! 8-)
Fingers crossed and thanks for the suggestion.

Spiderbill

I've been watching EPIC. Maybe a bit too late to buy now, as SP: 73.00p.

I noted it holds retail, but retail warehouses (66%), as opposed to retail high street. Offices 29%, from the March factsheet.

Ongoing costs from the KID: 3.09% and a risk category of 6.

Currently, yield showing as: 6.73% with a discount to NAV of: 21%

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430510

Postby spiderbill » July 26th, 2021, 3:16 pm

richfool wrote:I've been watching EPIC. Maybe a bit too late to buy now, as SP: 73.00p.

I noted it holds retail, but retail warehouses (66%), as opposed to retail high street. Offices 29%, from the March factsheet.

Ongoing costs from the KID: 3.09% and a risk category of 6.

Currently, yield showing as: 6.73% with a discount to NAV of: 21%


Covid ups and downs could knock it back down so worth keeping an eye on it.

Yes the retail warehouse part was what convinced me to buy - I had bought RGL partly for that reason though I note that they've moved more to regional offices recently.

The risk was why I used the word "punt" ;)
Been buying mostly ITs and solid shares recently so a wee flutter helpe add some spice. Of course if it goes up to 80p I'll firstly wish I'd invsted more and then wonder whether to take the profit and run (not my usual style) or hang on and hope it stays there while pumping divis......

Spiderbill

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430512

Postby pje16 » July 26th, 2021, 3:26 pm

Keep an eye on the price - some days it's like a yo-yo
https://www.londonstockexchange.com/sto ... mpany-page
wait till the page loads and then use the time filter dropdown for the graph

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430526

Postby spiderbill » July 26th, 2021, 4:35 pm

pje16 wrote:Keep an eye on the price - some days it's like a yo-yo
https://www.londonstockexchange.com/sto ... mpany-page
wait till the page loads and then use the time filter dropdown for the graph


Handy link, thanks.
74.80p
Up 8¾ % in two days. If only my other picks would do that ;-)

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430527

Postby pje16 » July 26th, 2021, 4:46 pm

spiderbill wrote:Up 8¾ % in two days. If only my other picks would do that ;-)

me too - know what you mean :lol:

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430635

Postby SKYSHIP » July 27th, 2021, 7:39 am

As I said in the Header on 9th July:

"A removal of the tap would likely see the shares make a good move forward. IMO, without the overhang, they should be trading @ c80p."

Well that is of course exactly what happened last week and triggered the move forward - healthy progress, not immediate; and gave many an opportunity to top up or buy in for the first time.

Stadium are out, the tap is history; and I expect further gains...

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430670

Postby flyer61 » July 27th, 2021, 10:30 am

Excellent, thanks SKYSHIP.

With a 10 per cent dividend rise now on the horizon we still at 75P purchase price have a stock that will be supplying a covered 7% yield.

Full your boots!

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430727

Postby Gerry557 » July 27th, 2021, 2:53 pm

Can you turn the tap back on?

I was looking to add a few more, though I'd get a bit more research and thinking time.

Looks like I dithered too long.

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Re: Ediston (EPIC) - Anomalously cheap & a secure high yield…

#430750

Postby flyer61 » July 27th, 2021, 4:23 pm

https://www.londonstockexchange.com/new ... g/15075023

https://www.londonstockexchange.com/new ... y/15075139

Moderator Message:
This post would have been better if the poster had provided some contextual information, or perhaps a brief précis. The first link details director buying; but I'm not sure of the poster's intent in posting the second link. -- MDW1954 (not presently a holder, but watching EPIC with interest. The news from CREI was good today, too, no...?)


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