Category: Uncategorized (Page 320 of 374)

PHP currently yields 7.2%. If/when the price rises the yield will fall.

As the Trust is currently printing a profit and as PHP only has 6k invested, it will most probably be sold to buy a higher yielding Trust.

It’s easier to explain with an example.

Trust A 10k invested yielding 7%.

As long as the dividend remains the same the portfolio should receive £700 pa in dividends, the price makes no difference.

If the price rises by 10%, the trust still receives the buying yield, dividends

of £700 pa.

The running yield would fall to 6.4%, still £700 pa.

If the Trust A was sold and the11,000 re-invested in a Trust yielding 8%

the dividend would be £880.

In a rising market, as long as there are Trusts out of favour, there are

usually a few, The Snowball can be grown thru Trading.

Many a mickle makes a muckle.

There is £1,300 of cash to be invested after Easter, now most probably going to be re-invested in FSFL.

The Trust has been very difficult to trade, maybe they wanted to get all the bad news out of the way, if so they certainly succeeded in destroying the share price.

They have a bond to repay and muted a cash raise below the share price at the time. Since then they have stated they have property for disposal.

The current disposal programme comprises of 58 assets totalling c £130m:

·    one disposal contracted for £405,000;

·    10 disposals totalling c. £22 million under offer and in legal due diligence;

·    9 further disposals totalling c. £20 million are in negotiation

·    24 further disposals totalling c. £42 million are on the market and

·    14 potential disposals totalling c. £46 million are being prepared for the market

‘Net LTV 55.1% (31 December 2022: 49.5%) before unamortised costs. The Board continues to target a net LTV ratio of 40%

Whilst their intentions are unclear, maybe a cash raise and disposal of property to target their LTV.

Still trading at a big discount to NAV, so a hold for the portfolio as we await developments.

It’s been a great Trust for traders and likely to continue to be.

Triple Point Energy Transition plc

(“TENT”, the “Company” or together with its subsidiaries, the “Group”)

Completion of Asset Sale

Triple Point Energy Transition plc (ticker: TENT), is pleased to announce that the sale of an LED Facility described in the Circular sent on 5 March 2024, and approved by Shareholders on 22 March 2024, has completed.

The sale has been transacted with TP Leasing Limited (“TPLL“), a member of the group of the Company’s investment manager Triple Point Investment Management LLP and will result in a return of £2.1m to the Company, representing the outstanding loan balance.

Background

In September 2023, the Group, via TENT Holdings Limited, provided a £2.3 million receivables financing facility to Boxed Light Services Limited (“Boxed“) (the “LED Facility“). Boxed installs efficient LED lights and controls at Places for People Homes Limited sites, part of the Places for People group, one of the UK’s leading social enterprises. 

John Roberts, the Company’s Chair commented:

“We are delighted with this strong start to TENT’s orderly realisation process, which was approved by shareholders on Friday 22 March 2024. The completion of this sale reduces the number of investments within the Group’s portfolio from 19 to 18 investments. We will continue to update the market on the orderly realisation process and on our plans for returning capital to shareholders.”

RECI” or the “Company”)

Successor Buyback Programme

The Board of Directors of Real Estate Credit Investments Limited announces that, having reviewed the current circumstances and assessed the Company’s level and allocation of cash available for deployment, it intends to undertake a further buyback programme (the “Programme“) which will run to 30 September 2024. The aggregate purchase price of all shares acquired under the Programme will be no greater than £10.0 million.  The Company’s initial buyback programme will expire on 31 March 2024.

The Company’s initial buyback programme was announced on 31 August 2023, with an aggregate purchase price of all shares purchased of no more than £5.0 million. Pursuant to that programme, a total of 4,095,000 ordinary shares of no par value each (“Ordinary Shares“) were purchased for treasury for an aggregate amount of £5.0 million. Ordinary Shares were repurchased under the initial programme at an average discount to net asset value per share of 16.2%, with the Company’s Ordinary Shares trading at an average discount of 14.1% from 31 August 2023 to 25 March 2024 (the date of the last share repurchase under the programme).

The Programme will occur within the limitations of RECI’s existing general authority to purchase no more than 34,376,938 Ordinary Shares as granted by shareholders at the Company’s annual general meeting held on 15 September 2023 (with such authority sought to be renewed at the Company’s 2024 annual general meeting to allow the Programme to extend to 30 September 2024).

The Company has appointed Liberum Capital Limited (“Liberum“) to make market purchases of Ordinary Shares in respect of the Programme. Liberum will purchase the Ordinary Shares as principal (and not as agent) and sell them on to the Company. The Company intends that any Ordinary Shares purchased by the Company will be held in treasury. 

Any share purchases will be made in accordance with certain pre-set parameters set out in the terms of Liberum’s engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company’s 2023 annual general meeting (and in due course the 2024 AGM); and the EU Market Abuse Regulation (596/2014) as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended); and Chapter 12 of the Financial Conduct Authority’s Listing Rules.

The maximum price payable per share (exclusive of expenses) must not exceed the higher of: (i) 105% of the average middle market quotations for the five business days preceding the date of purchase; and (ii) the higher of the last independent trade and the highest current independent bid on the London Stock Exchange.

The blog ‘s plan is to invest 100k of seed capital in a portfolio of Investment Trusts that pay a dividend.

Now u may not have a spare 100k laying around and if u do u may not want to commit that amount of money.

The blog portfolio intends to earn a ‘pension’ of between 14 and 16k within ten years, currently year 2 where the portfolio is ahead of target.

No new funds will be added to the portfolio but u may be willing to add funds as the portfolio achieves it’s yearly fcast.

As interest rates fall, let’s assume when u want to take an income from your investments an annuity is available at 4%.

U would need to increase your 100k of seed capital to 400k and surrender all your capital for the privilege.

GL with that if that’s your chosen option.

I forgot to mention that the blog portfolio whilst providing a ‘pension’ u will also have all your capital to withdraw, if your circumstances change.

I’ll do a review of the portfolio, the fcast and the target at the end of the first quarter this weekend.

Current cash to re-invest £830.00, with a further £470 to be added to the Snowball tomorrow.

4.83p would be nice but I am going to use 4.1p for the plan and that may still be trimmed.

The share has fallen down to a support area.

The options.

U can buy for the 8.8% yield hoping that support holds, knowing that u have bought at a better price than those catching a falling knife.

The thread price is 92.7p including charges, that’s the risk, the further u trade away from a support area.

U can watch to see if it continues to fall, with the fall back position that u could buy lower down or if it trades back up thru support.

U can wait and if it bounces buy, accepting a slightly lower yield.

U could buy something else.

The glorious uncertainty of share trading.