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Ediston (EPIC)
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- Lemon Slice
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Ediston (EPIC)
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.
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.
Last edited by csearle on January 11th, 2023, 12:30 pm, edited 1 time in total.
Reason: Subject change
Reason: Subject change
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- Lemon Half
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- Lemon Slice
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Re: Ediston (EPIC)
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)
I read the tip ......... after buying
So a toe in the water and will follow more closely from now on.
So a toe in the water and will follow more closely from now on.
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- Lemon Half
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- Lemon Slice
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Re: Ediston (EPIC)
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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- Lemon Half
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Re: Ediston (EPIC)
The price today has been pretty static, It didn't move at all between 08.30 and 10.50
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- Lemon Slice
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Re: Ediston (EPIC)
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!
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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- Lemon Slice
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Re: Ediston (EPIC)
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!
Fingers crossed and thanks for the suggestion.
Spiderbill
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Re: Ediston (EPIC)
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!
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)
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)
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
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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- Lemon Slice
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Re: Ediston (EPIC)
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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- Lemon Half
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Re: Ediston (EPIC)
spiderbill wrote:Up 8¾ % in two days. If only my other picks would do that
me too - know what you mean
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- Lemon Slice
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Re: Ediston (EPIC)
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...
"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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- Lemon Slice
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Re: Ediston (EPIC)
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!
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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- Lemon Quarter
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Re: Ediston (EPIC)
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.
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)
https://www.londonstockexchange.com/new ... g/15075023
https://www.londonstockexchange.com/new ... y/15075139
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...?)
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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