SECURE Property Development and Investment (SPDI) invests in south eastern European real estate - an area out of investor favour, but offering secure blue chip covenanted leases at yields typically 8-10%. As a function of these markets being out of favour, and because of SPDI share issuance at below NAV leading to past NAV per share dilution, SPDI shares trade at c48% below diluted NAV/ share. A key event will take place when Terminal Brovary disposal completes (imminently). SPDI having raised occupancy from 12% when purchased, to 100% now, the sale books a profit. This event, crucially, takes SPDI to marginally profitable on its P&L (this management bought into a sub-scale operation) and marginally negative cash flow (post debt amortisation and a conservative estimate of apartment sales).
13 Dec 2016
Strategic assessment
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Strategic assessment
SECURE PROPERTY Development & Investment plc (SPDI:LON) | 4.0 0 0.0% | Mkt Cap: 5.17m
- Published:
13 Dec 2016 -
Author:
Mike Foster -
Pages:
33
SECURE Property Development and Investment (SPDI) invests in south eastern European real estate - an area out of investor favour, but offering secure blue chip covenanted leases at yields typically 8-10%. As a function of these markets being out of favour, and because of SPDI share issuance at below NAV leading to past NAV per share dilution, SPDI shares trade at c48% below diluted NAV/ share. A key event will take place when Terminal Brovary disposal completes (imminently). SPDI having raised occupancy from 12% when purchased, to 100% now, the sale books a profit. This event, crucially, takes SPDI to marginally profitable on its P&L (this management bought into a sub-scale operation) and marginally negative cash flow (post debt amortisation and a conservative estimate of apartment sales).