I’ve bought for the Snowball 14910 shares in Schroders European Real Estate
SERE at a cost of 10k.
Current yield 7.5%
Discount to NAV 35%
Page 99 of 309
Adjusted EPS increased to 3.0 pence following earnings enhancing acquisitions in the period
On track to deliver full-year 2025 dividend target of 6.12 pence per share
Thursday 13 March
Apax Global Alpha Ltd ex-dividend date
JPMorgan Emerging Markets Investment Trust PLC ex-dividend date
Real Estate Credit Investments Ltd ex-dividend date
Safestore Holdings PLC ex-dividend date
Schroder Real Estate Investment Trust Ltd ex-dividend date
Tritax Big Box REIT PLC ex-dividend date
Warehouse REIT PLC ex-dividend date
A reminder the Snowball owns mainly Investment Trusts where the aim is to provide a ‘secure’ dividend, although no dividend is ever completely secure.
If the Trust is trading at a discount to NAV there may be an opportunity to take some of Mr. Markets money and re-invest it in a higher yielder to grow your Snowball but this is only a secondary consideration
For any new readers, the rules for the Snowball.
There are only 3
One.
Buy Investment Trusts that pay a ‘secure’ dividend and use those dividends to buy more Trusts that pay a ‘secure’ dividend.
Two
Any Trust that drastically changes it’s dividend policy, must be sold, even at a loss.
Three
Remember the Rules.
Assura PLC on Monday said it would be ‘minded to accept’ a possible £1.61 billion cash bid from a US private equity consortium.
The Altrincham, England-based care property investor and developer said the offer from Kohlberg Kravis Roberts & Co Partners LLP and Stonepeak Partners (UK) LLP would value each share at 49.4 pence each.
In response, shares in Assura were up 14% at 46.48p each in London on Monday morning.
KKR and Stonepeak Partners are both New York-headquartered investment companies. Stonepeak specialises in infrastructure investment.
The price is a 32% premium to Assura’s undisturbed share price of 37.4p on February 13, the day prior to Assura announcing it received an unsolicited approach from KKR and USS Investment Management.
KKR noted that tilt valued Assura at £1.56 billion, or 48p per share, and also said in February that it was considering if there is any ‘merit’ in engaging with Assura’s board.
Under the latest proposal, Assura shareholders would retain the quarterly dividend of 0.84p per share due to be paid to shareholders in April and receive cash of 48.56p per share at closing.
On the latest proposal, Assura said: ‘The consortium of KKR and Stonepeak, both long-term infrastructure investors, recognises that Assura’s leading platform and portfolio are important social infrastructure assets for the UK, and has indicated its intention to deploy further capital to the portfolio to continue its growth.’
After speaking with its advisers and major shareholders, Assura said it has indicated to the consortium that it would be minded to recommend a bid should a firm offer be made.
As a result, Assura has decided to engage in discussions with the consortium and allow it to complete a limited period of confirmatory due diligence.
Assura also noted it received an all-share takeover approach from fellow London listing Primary Health Properties PLC worth 43p per share.
Assura said the private equity cash bid proposal is more attractive, and with ‘materially less risk’.
‘Therefore, the board has rejected the PHP proposal,’ it said.
PHP has until April 7 to make a firm bid for Assura.
Shares in PHP were up 1.7% at 92.05p each in London on Monday morning.
I’ve bought for the portfolio 2020 shares in SDCL Energy Efficient for 1k.
xd this week for 1.58p
Stick to your task ’til it sticks to you;
Beginners are many, but enders are few.
Honour, power, place and praise
Will come, in time, to the one who stays.
Stick to your task ’til it sticks to you;
Bend at it, sweat at it, smile at it, too.
For out of the bend and the sweat and the smile
Will come life’s victories, after awhile.
Author Unknown
Stick to your plan and luck will come after a while, better to be lucky than clever.
I’ve sold the portfolio shares in Assura, bought back last week for a profit of £1,176.00
Total profit for AGR £3,007.00 including earned dividend but not yet received.
Assura plc
Possible Cash Offer
The Board of Assura plc (“Assura” or the “Company”) announces that it has received an indicative, non-binding proposal from Kohlberg Kravis Roberts & Co. Partners L.L.P. (“KKR”) and Stonepeak Partners (UK) LLP (“Stonepeak”) (together, the “Consortium”) regarding a possible cash offer for the entire issued and to be issued share capital of Assura at 49.4 pence per share (the “Possible Cash Offer”).
Pursuant to the Possible Cash Offer, Assura shareholders would retain the declared quarterly dividend of 0.84 pence per share which is due to be paid to Assura shareholders on 9 April 2025 and receive cash consideration of 48.56 pence per share at closing. As such, the Possible Cash Offer represents a 2.9% increase on KKR’s previous indicative, non-binding proposal of 48 pence per share, which was also inclusive of Assura’s last quarterly dividend.
The Possible Cash Offer represents 100% of Assura’s EPRA Net Tangible Asset Value of 49.4 pence as at 30 September 2024.
The Possible Cash Offer values the fully diluted ordinary share capital of Assura at £1,607 million and represents:
· a 31.9% premium to the closing share price of 37.4 pence on 13 February 2025 being the last business day prior to the announcement made by the Company on 14 February 2025;
· a 33.9% premium to the volume weighted average Assura share price of 36.9 pence over the 1 month to 13 February 2025; and
· a 30.6% premium to the volume weighted average Assura share price of 37.8 pence over the 3 months to 13 February 2025.
The Consortium of KKR and Stonepeak, both long-term infrastructure investors, recognises that Assura’s leading platform and portfolio are important social infrastructure assets for the UK, and has indicated its intention to deploy further capital to the portfolio to continue its growth.
Having carefully considered the Possible Cash Offer with its advisers and consulted with the Company’s major shareholders extensively following the announcement of a possible offer on 14 February 2025, the Board has indicated to the Consortium that, should a firm offer be made on the financial terms set out above, it would be minded to recommend such an offer to Assura shareholders, subject to the agreement of the other terms of the offer. Accordingly, the Board has decided to engage in discussions with the Consortium in relation to these terms and to allow the Consortium to complete a limited period of confirmatory due diligence.
The Board confirms that it has also received an indicative, non-binding proposal from Primary Health Properties PLC (“PHP”) regarding a possible all-share combination of Assura and PHP structured by way of an offer by PHP for Assura at an exchange ratio based on each company’s last reported NTA per share (the “PHP Proposal”). The implied value of the PHP Proposal based on PHP’s share price of 90.1 pence as at 13 February 2025 is 43 pence per Assura share. The Board has carefully considered the PHP Proposal with its advisers and concluded that the Possible Cash Offer is more attractive than the PHP Proposal as it provides shareholders with the opportunity to receive cash consideration at a significantly higher value per share than the proposal from PHP and with materially less risk. Therefore, the Board has rejected the PHP Proposal.
This announcement is made with the consent of the Consortium but without the consent of PHP. A further announcement will be made as appropriate.
Under Rule 2.6(a) of the Code, PHP must by no later than 5.00 p.m. on 7 April 2025, either announce a firm intention to make an offer for Assura in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
In accordance with Rule 2.5(a) of the Code, the Consortium reserves the right to make an offer for Assura at a lower value or on less favourable terms than the Possible Cash Offer: (i) with the agreement or recommendation of the Board of Assura; (ii) if a third party (excluding USS Investment Management Limited (as agent for and on behalf of Universities Superannuation Scheme Limited (acting in its capacity as sole corporate trustee of the Universities Superannuation Scheme)) (“USSIM”)) announces a firm intention to make an offer for Assura which, at that date, is of a value less than the value of the Possible Cash Offer; or (iii) following the announcement by Assura of a Rule 9 waiver transaction pursuant to Appendix 1 of the Code or a reverse takeover (as defined in the Code). If Assura declares, makes or pays any dividend or distribution or other return of value or payment to its shareholders, the Consortium reserves the right to make an equivalent reduction to the Possible Cash Offer. The Consortium also reserves the right to introduce other forms of consideration and/or to vary the form and/or mix of the consideration it would offer.
Stock-market crash: will the S&P 500 bubble burst or deflate?
After outstanding returns in five of the past six years, the S&P 500 looks toppy. With its valuation stretched by big tech stocks, is a crash inevitable?
Posted by
Cliff D’Arcy
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
Having followed financial markets since the 1980s, I’ve witnessed four stock market crashes. My first was Black Monday — 19 October 1987 — when the Dow Jones Industrial Average shed 508 points (22.6%) overnight. Ouch.
Market meltdowns
My second major meltdown was the ‘dotcom bubble’ bursting in 2000-03. From end-1999 to 12 March 2003, the FTSE All-Share Index plummeted by 50.9%.
My third financial collapse? The global financial crisis of 2007-09. From 25 June 2007 to 3 March 2009, the FTSE All-Share Index crashed by 48.6%. Fortunately, I warned many times of this coming chaos, vastly reducing my losses during this bear market.
My fourth stock-market crash was the Covid-19 ‘flash crash’ of spring 2020. The FTSE All-Share Index slumped 37.2% from 17 January to 19 March. Having put 50% of my family fortune into cash at end-2019, I gobbled up great stocks at bargain prices during this rout.
Bubble and squeak
Discussing US stock valuations recently, a friend offered a misquoted comment from former Manchester United manager Sir Alex Ferguson. Arguing that American equities were priced for perfection, he warned this could be ‘squeaky bum time’ for global investors.
Reviewing the S&P 500, I agree. The leading US stock-market index trades on an elevated price-to-earnings ratio of 23.9 times historic earnings, well ahead of its long-term average. Also, its dividend yield of 1.3% a year is modest, reflecting American companies’ reluctance to return cash to shareholders.
In contrast, the UK’s FTSE 100 index seems cheap as chips to me. It trades on 14.7 times trailing earnings and offers a dividend yield of 3.6% a year — a useful cash stream for value and income investors, including me.
Bang or hiss?
Lacking a crystal ball, I have no idea whether the US stock market bubble — if it truly is a bubble — will burst or gently deflate. Indeed, I expect the S&P 500 to hit higher highs before financial gravity’s pull. Also, future declines might last a week, a month, a quarter, or a year. Who knows? What I do know is that buying quality stocks during bearish periods usually pays off handsomely over time.
Silicon value
Right now, the S&P 500’s valuation is inflated by the highly rated stocks of the Magnificent Seven mega-cap tech firms. In particular, Elon Musk’s carmaker Tesla and Jensen Huang’s chipmaker Nvidia trade on sky-high earnings multiples.
However, one ‘Mag 7’ member seems an outstanding value stock to me. It is Alphabet (NASDAQ: GOOG), owner of all-powerful search engine Google. After recent share price falls, Alphabet has dropped to fifth in the league table of US-listed Goliaths.
At its 52-week peak, the Alphabet share price hit an all-time high of $208.70 on 4 February. As I write, it stands at $171.75, down 17.7% in four weeks. This values this tech Titan at $2.1trn — a valuation driven down partly by a federal anti-trust investigation into its dominance in online advertising.
For me, this fall pushes this well-known stock well into ‘Silicon value’, trading on 21 times earnings with a dividend yield nearing 0.5% a year as a bonus. I’d buy big into Alphabet today, had we not bought this stock at its five-year low in November 2022. Of course, anti-trust issues and slower earnings growth could batter this stock, but we will keep tight hold of our high-performing Alphabet shares!
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
If you’re excited by the thought of regular passive income payments, as well as the potential for growth on your initial investment, then keep watching and waiting.