Investment Trust Dividends
The blog portfolio will subscribe for it’s entitlement for the new shares to be issued at 10p.
With the cash from IDIG, dividends payable and current cash, there will enough cash, with no need to sell anything.
RGL intends to continue to pay dividends to keep its REIT status but they will be diluted by the new shares being issued.
When the new shares are issued the blog portfolio will be overweight with RGL so the intention is to sell some into the market if the price is favourable.
At the half way stage for this year, dividends received are £5,327.98
Cash for re-investment £1,443.99
Just ahead of the plan for income of 8k and a target of 9k.
TurkHit
turkhit.tv
gisyeneha@zaim-fin.com
I thank you for reading the thread and posting a comment but sadly I can’t approve any post I can’t understand as that could lead to a very slippery slope. GL anyway.
Story by Ben McPoland
Solar panels fields on the green hills© Provided by The Motley Fool
Perusing the FTSE 250, one dividend stock in particular stands out to me for its eye-popping yield. That’s NextEnergy Solar Fund (LSE: NESF), which has a huge 10.7% yield.
However, this renewable energy fund recently raised its payout for the 11th consecutive year. And the future still looks very bright, despite a big drop in the share price over the past few years.
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NextEnergy Solar is a specialist investor in solar assets and energy storage. At the end of March, its portfolio had 103 operating assets, enough to power the equivalent of 301,000 homes for one year.
Source: NextEnergy Solar Fund© Provided by The Motley Fool
A significant portion of the fund’s revenues comes from government-backed subsidies and power purchase agreements (PPAs). These are often indexed to inflation. This means that as inflation rises, the payments it receives also increase, providing a natural hedge.
The share price has fallen from 126p at the start of 2020 to just 78p today. The chief culprit for this is higher interest rates. They’ve impacted the entire renewables sector by increasing the cost of financing for both existing and new debt.
At the end of March, the company’s financial debt was £338m. Of this, 32% was on a floating rate (not fixed), so the high-rate environment is an ongoing risk here.
To reduce debt, the company has embarked on a capital recycling programme. It recently sold a 35.2MW solar farm in Lincoln for £27m. This transaction represented a 14% premium to the March holding value, which is very encouraging to see.
Proceeds from this will be used to reduce the company’s debt. Three other assets are still up for sale.
Higher rates also tend to negatively impact the value of assets, including solar farms. Currently, the fund is trading at a whopping 26% discount to net asset value (NAV).
Chairwoman Helen Mahy said: “NextEnergy Solar Fund continues to maintain a strong financial platform in a challenging environment… [We] view the current size of the company’s discount to NAV as unjustified.”
I agree and think that when the Bank of England starts to cut interest rates, the share price could be set for a nice rebound. Longer term, I remain bullish on the clean energy sector and this fund in particular.
Meanwhile, there is that massive 10.7% dividend yield. At the current price, I’d need to buy 11,987 shares to aim for £1,000 in annual passive income. This would set me back £9,350.
While no payout is guaranteed, I reckon the chance to lock in such high-yield passive income is well worth the risk here. So I’m looking to buy this stock myself.
How to become an ISA millionaire
Investing is a long-term game so don’t expect to get rich quick with an ISA.
Performance can be volatile but by staying invested you benefit from the power of compounding.
If you can invest the full £20,000 annual ISA allowance each tax year and get a 5% return before fees, you could hit the million-pound mark in 25 years with a pot worth £1,002,269.08.
An annual return of 7% could get you to the million-pound target within 22 years, while a more conservative 3% would take 31 years.
“Starting your ISA investing early is a key component to joining the ISA millionaire club,” adds Hasler.
“Other important steps to getting the best returns and seeing that money grow are using your ISA allowance every year, investing wisely and regularly, then leaving the money there.”
The Telegraph reveals its top pick among London’s generalist listed property funds, while This is Money notes that The European Smaller Cos Trust is ‘underpinned by rather good performance numbers’.
ByFrank Buhagiar
Questor: This fund is our pick of the property Reits
With so many London-listed property REITs to choose from wouldn’t it be handy if a national tipster came out with its top pick in the sector? Enter The Telegraph’s Questor, although the Column does make the reader wait for 15 paragraphs before the big reveal. For the record, the preceding 15 paragraphs run through how shares in generalist listed property funds trade at over 25% discounts to net assets and that these ‘abnormally wide discounts present a good opportunity with real estate recovering after a two-year slump’ – the commercial property market is showing signs of stabilising and encouragingly, rents are growing, most notably in the logistics sector.
As for which is Questor’s top pick, three funds stand out based on the latest round of financial results from the sector. First, there’s Custodian Property Income Reit. Questor thinks the 21% discount ‘looks great value for a diversified £412m portfolio of smaller properties outside London that is 40pc invested in industrials and 23pc in retail warehouses.’ What’s more, with the shares trading on an 8.4% prospective yield, shareholders are effectively being paid to wait for a recovery.
Next up, Schroder Real Estate on a 7.8% yield. According to Questor, ‘On a 23pc discount the shares look attractive, particularly with a 61.5pc exposure to industrial estates and retail warehouses.’ Although the article does points out that asset sales are required to lower the company’s debt levels which currently stand at 37% of assets.
Making up the top three, Picton Property Income. Like the Schroder fund, its £525m portfolio has a large weighting to industrials (59%). A further 7% is in retail warehouses and 30% in offices. But, ‘despite beating its commercial property benchmark for 11 years in a row, with 153pc growth in net asset value over 10 years, the shares languish on a 30pc discount.’ Compared to the previous two funds, Picton’s yield (5.5%) is lower, but growth prospects are higher thanks to having an estimated rental value 29pc above current rents’. Because of this, ‘While Custodian and Schroders may attract income seekers, we believe Picton could generate higher total returns.’ Guess that makes it the Picton of the crop.
This is Money THE EUROPEAN SMALLER COMPANIES TRUST: Fund that runs with the winners in global markets
The European Smallers Companies Trust’s turn under the This is Money spotlight. And it’s easy to see why. That’s because the fund ‘is underpinned by rather good performance numbers’. Over one year, the fund is up 23%. Over five years, the gain stands at 95%. ‘Trusts with a similar investment mandate have somewhat trailed in its wake.’
A big reason behind the strong numbers is the £739 million fund’s focus on investing in undervalued companies that are global businesses as opposed to being European-centric. So, even though many European countries are faced with economic and political uncertainty, businesses across the continent are still able to flourish.
Fund manager Ollie Beckett also cites the trust’s diversified portfolio – there are currently 131 holdings with the biggest position only accounting for 3.1% of the trust’s assets. As Beckett explains ‘In the smaller companies’ space, diversity pays – not high conviction investing. As an investment manager, you are going to get around 44 per cent of your stock picks wrong.’ Important then to squeeze as much as possible out of the 56% that are the winners ‘The key is to gain confidence in these winners, build positions and run with them. That way, you make profits for your shareholders.’
The portfolio will subscribe for the shares in the open offer, using the funds received from ADIG. That wasn’t the plan, the best laid plans of men and mice.
I will sell the open offer shares if Mr. Market allows me to and retain the original holding until the future dividend intentions are made clear.
In relation to the year ended 30 September 2024, interim dividends of 1.42p per share were paid to shareholders in October 2023 and January 2024 while a special dividend of 1.65 pence per share was paid to shareholders in December 2023. A further interim dividend of 1.42p per share was paid to shareholders in March 2024.
Following Court approval on 7 June 2024 and in the absence of unforeseen circumstances, it is the current intention of the Board to declare another interim dividend, for the year ended 30 September 2024, to be paid around mid-October 2024. Thereafter, it is likely that dividends will be paid in smaller, less regular amounts principally for the purpose of maintaining the Company’s investment trust status while capital will be returned progressively to shareholders in larger, infrequent amounts by the most tax-efficient mechanism available.
The Board intends to continue to pay a sufficient level of dividend to ensure that the Company will not retain more than 15 per cent. of its income in an accounting period so as to maintain the Company’s investment trust status during the Managed Wind-Down. The Directors will declare certain dividends based on the Company’s net income but the quantum and timing of any dividends in future will be at the sole discretion of the Board.
There can be no guarantee as to the payment, quantum or timing of dividends during the Managed Wind-Down of the Company.
If history repeats itself, UK shares could surge following next Thursday’s election. Here’s one FTSE 250 stock Royston Wild thinks might shoot higher.
Royston Wild
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
We’re now just a week away from the Britain’s next general election. If investor predictions prove accurate, we could be about to see a surge in the value of UK shares.
As I type, it appears the Labour Party is on course to secure a thumping House of Commons majority. A convincing win by any political party is always cheered on by the markets, thanks to the stability it provides.
The results are in!
New research suggests that many retail investors believe a Labour victory could be good for the London stock market.
According to eToro, 44% of investors think British share prices will increase if Keir Starmer enters Downing Street. That compares with 30% who believe the opposite.
There’s some historic basis for believing a new bull run could soon be upon us. Dan Moczulski, UK managing director at eToro, says that “when Labour won power in 1997 the FTSE 100 rallied by 35% over the next 12 months.”
He adds that “whilst we’re unlikely to see anything quite so dramatic this time around,” he notes that “the FTSE 100 has already returned 7% so far this year, indicating that markets are comfortable with the expected outcome of this election.”
Nothing’s certain
However, there are some important caveats for investors to remember. Past performance is no guarantee of future returns. And, right now, inflationary pressures and escalating geopolitical tension remain a threat to share prices across the globe.
It’s also important to remember that not all stocks will benefit equally from a potential Labour victory. Housebuilders like Barratt Developments and building materials suppliers like Kingfisher could benefit from a possible rise in newbuild numbers.
Increased spending on healthcare and education might also boost primary healthcare facility provider Assura and educational resources supplier Pearson respectively.
However, potential losers could be water supplier United Utilities and train operator FirstGroup, given the greater threat of re-nationalisation.
A potential riser?
Those seeking possible strong performers after the election may want to look at Greencoat UK Wind (LSE:UKW). It is one of many renewable energy stocks in the UK that could benefit from Labour’s drive to improve green investment.
According to its election manifesto, Labour plans to “work with the private sector to double onshore wind, triple solar power, and quadruple offshore wind by 2030“.
Manifesto promises famously aren’t legally binding. But the growing climate emergency means rising investment in clean energy looks a certainty, regardless of which party wins the election.
Wind turbines generated 29.4% of Britain’s electricity in 2023, according to National Grid. This was up from 26.8% a year before as wind capacity continued to sharply rise.
This doesn’t mean companies like Greencoat will deliver powerful earnings growth every year. Even a ‘supermajority’ won’t allow Labour to control the weather. So businesses will still suffer during calm periods when energy generation tails off.
But over the long term, buying renewable energy shares could offer significant returns to investors. FTSE 250-listed Greencoat has delivered a total shareholder return close to 270% over the past 12 years. This could improve significantly if Labour makes good on its green investment plans.
(“Regional REIT” or the “Company”, together with its subsidiaries the “Group”)
Launch of Underwritten Capital Raising of £110.5m, Share Consolidation and Notice of Extraordinary General Meeting
Regional REIT Limited (LSE: RGL), the regional property specialist, is pleased to announce a Capital Raising of approximately £110.5 million, in aggregate, by way of a fully underwritten Placing, Overseas Placing and Open Offer of 1,105,149,821 New Ordinary Shares at an issue price of 10 pence per New Ordinary Share. The Company also announces a 1 for 10 Share Consolidation. The Capital Raising is being fully underwritten by Bridgemere Investments Limited (“Bridgemere”), which is part of the Bridgemere group of Companies established by Steve Morgan CBE.
The Capital Raising will enable the Company’s £50 million Retail Bond to be fully repaid, eliminating this short term liability and further reducing the constraints caused by the requirement to pay coupon distributions on the Retail Bond. In addition, £26.3 million of the Net Capital Raising Proceeds will be used to reduce bank facilities, which will result in the Company having greater headroom under the covenants in such facilities, and the remaining £28.4 million of the Net Capital Raising Proceeds will provide additional flexibility to fund selective capital expenditure on assets, which will enhance earnings in the near term and value in the mid to long-term, further underpinning quarterly dividends going forward. This will reduce LTV from 56.8 per cent. (based on the valuations as at 21 June 2024 as set out in the Valuation Report) to 40.6 per cent. upon completion of the Capital Raising.
Kevin McGrath, Chairman of Regional REIT, commented:
“Following a comprehensive review of a wide range of options to accelerate a reduction in indebtedness and the repayment of the £50 million retail bond which matures in August 2024, the Board believes this Capital Raising is the best available solution for shareholders. The Capital Raising, supported by Bridgemere, will enable the Company to strengthen significantly Regional REIT’s financial position, reducing indebtedness and provide the Company with greater financial flexibility and liquidity headroom.“
Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager, commented:
“Since the Covid-19 pandemic the Company has been operating in a challenging environment resulting in the LTV increasing to 56.8% against a target of less than 40%. The fully underwritten and fully pre-emptive Capital Raising provides the best long-term solution to the upcoming retail bond refinancing, will put the Company on a sound footing reducing the LTV to approximately 40% and provide the flexibility to fund capital expenditure on assets to maximise value and income for shareholders over the long term.“
Key Highlights
· Placing, Overseas Placing and Open Offer (the “Capital Raising”) of 1,105,149,821 New Ordinary Shares at an issue price of 10 pence per New Ordinary Share to raise approximately £110.5 million, approximately £104.7 million net of expenses (the “Net Capital Raising Proceeds”).
· The Capital Raising is being fully underwritten by Bridgemere, which is part of the Bridgemere group of Companies established by Steve Morgan CBE, providing the requisite certainty to recapitalise the Company.
· Bridgemere will subscribe for the Placing Shares at the Issue Price and the Placing Shares will be subject to clawback to satisfy valid applications under the Open Offer and Overseas Placing.
· The Open Offer to Qualifying Shareholders is on the basis of:
15 New Ordinary Shares for every 7 Existing Ordinary Shares
· The Issue Price represents a discount of 50.4 per cent. to the Closing Price of 20.2 pence and a discount of 82.3 per cent. to the latest published NTA per Share prior to the Latest Practicable Date of 56.4 pence.
· The Net Capital Raising Proceeds of approximately £104.7 million will be used to:
o satisfy the redemption of the £50 million 4.5 per cent. Retail Bond, which matures on the 6 August 2024;
o reduce bank facilities by £26.3 million, which will result in the Company having greater headroom under the covenants in such facilities; and
o the remaining £28.4 million of the Net Capital Raising Proceeds will provide flexibility to fund selective capital expenditure on assets, which will enhance earnings in the near term and value in the mid to long-term, further underpinning quarterly dividends going forward.
· The Company’s investment properties were independently valued on 21 June 2024 at £647.8 million (31 December 2023: £700.7 million), representing a decrease of 4.6% in the like-for-like value of the portfolio.
· Following completion of the Capital Raising, and subject to shareholder approval, it is proposed that the Ordinary Shares will be consolidated at the Consolidation Ratio of one Consolidated Share for every 10 Ordinary Shares.
· Assuming that Admission and Admission of the Consolidated Shares occur, the Board’s current intention is to pay approximately 2.2 pence per Ordinary Share (assuming the Share Consolidation becomes effective) in relation to the 2024 Q2 Dividend, which is expected to be declared in September 2024.
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