peter55

They did say at the recent presentation that would be off loading a couple of properties at higher than valuation.

I used to have a large holding in ESP, bought at a couple of the fund raisings last year. However, I sold out, not because of the Brexit story but because 1. I was concerned when the finance director recently resigned, 2. The management incentive scheme looked greedy, given the size of company and what was already in place, in my opinion and was not backed by blanket vote from shareholders when it was passed, 3. the portfolio revaluation gains have been a significant part of dividend, which has until now not been covered by earnings (ie from my understanding the capital raises have been used to fund the headline 6p dividend). 4. another fund raising is due, the problem they have is to get large oversubscription is harder given last was @107 and share price not that much higher now.

I'm not so sure that there will be a further IPO imminently. I don't have the numbers to hand but from recollection they said they would raise £165m in equity over 12 months from 1 March 16, of which they raised £125m in mid March 16, ie only £40m left which I imagine could be more cheaply raised by a institutional placing then new public offer. I'm not clear if the original 165m can be increased or not. Also, given target LTV of 35% and low yields on offer they might go for more loans, similar to today's announcement. That said I'm a holder as this is a great asset back index linked quasi bond, when all bonds are sky high.

I thought they said that div would rise by at least RPI, so would hope might be looking at 6.25p for next year as developments start to kick in. Either way this looks attractive to me as a asset backed index linked bond. Also, pays much more than Unite and GCP student living, although if I am correct they are both not REITs. Interesting to see Unite's yield when it does convert. One thing I am not sure about is lack of information regarding new developments, seems to have gone very quiet post Brexit but maybe to be expected.