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Stanlib Fahari FY18
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watesh
#31 Posted : Friday, November 08, 2019 12:29:28 PM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
wukan wrote:
Balaa wrote:
What does this portend?


In terms of real estate the ICEA/Ndegwa is solid. They have prime real estate in the city together with accumulated market experience going back decades. That means a better experienced driver to drive the bus forward.

I hope they bring in more properties to that REIT
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Ericsson
#32 Posted : Friday, November 08, 2019 1:50:41 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
watesh wrote:
wukan wrote:
Balaa wrote:
What does this portend?


In terms of real estate the ICEA/Ndegwa is solid. They have prime real estate in the city together with accumulated market experience going back decades. That means a better experienced driver to drive the bus forward.

I hope they bring in more properties to that REIT


ICEA may delist the REIT
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Balaa
#33 Posted : Friday, November 08, 2019 2:23:49 PM
Rank: Member

Joined: 7/6/2018
Posts: 175
Location: Kinshasa
Only if they manage to buy off the other majority unit holders. Because the combined share of units held by Stanlib Kenya Ltd and Liberty Group equals a mere 14.42% (as at 30.06.19).
If it don't make dollars, it don't make sense
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Ericsson
#34 Posted : Friday, November 08, 2019 2:28:38 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Balaa wrote:
Only if they manage to buy off the other majority unit holders. Because the combined share of units held by Stanlib Kenya Ltd and Liberty Group equals a mere 14.42% (as at 30.06.19).


Threshold was lowered to 50% for compulsory acquisition.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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wukan
#35 Posted : Friday, November 08, 2019 2:45:40 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
Ericsson wrote:


ICEA may delist the REIT


How will delisting the REIT benefit ICEA? They actually need it as listed for purposes of rebalancing portfolio.

Quote:
Real estate fund Stanlib Fahari I-Reit plans to acquire more properties from pension firms and insurers who will be compensated in the form of shares, also known as units, in the Nairobi Securities Exchange-listed firm.

The proposed transactions are designed to eliminate the need for Fahari to raise large sums of new capital to buy more buildings.

The deals will dilute existing shareholders of the company but will also expand the pool of income-generating buildings owned by the fund, raising earnings for the expanded investor base.

For the insurers and pension firms, the transactions will help them comply with regulations limiting the amounts of capital they can invest in properties relative to their total assets.

“In the year ahead, we aim to deliver on our growth strategy, which entails partnering with pension schemes as well as insurance companies that are currently overweight with investment property and desire to rebalance their portfolios in line with the relevant pension and insurance regulations in Kenya,” Fahari says in its latest annual report. “The targeted transactions will be implemented through asset-for-unit swaps.”


https://www.businessdail...1618-241336z/index.html

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young
#36 Posted : Friday, November 08, 2019 3:49:59 PM
Rank: Elder

Joined: 6/20/2007
Posts: 2,074
Location: Lagos, Nigeria
wukan wrote:
Ericsson wrote:


ICEA may delist the REIT


How will delisting the REIT benefit ICEA? They actually need it as listed for purposes of rebalancing portfolio.

Quote:
Real estate fund Stanlib Fahari I-Reit plans to acquire more properties from pension firms and insurers who will be compensated in the form of shares, also known as units, in the Nairobi Securities Exchange-listed firm.

The proposed transactions are designed to eliminate the need for Fahari to raise large sums of new capital to buy more buildings.

The deals will dilute existing shareholders of the company but will also expand the pool of income-generating buildings owned by the fund, raising earnings for the expanded investor base.

For the insurers and pension firms, the transactions will help them comply with regulations limiting the amounts of capital they can invest in properties relative to their total assets.

“In the year ahead, we aim to deliver on our growth strategy, which entails partnering with pension schemes as well as insurance companies that are currently overweight with investment property and desire to rebalance their portfolios in line with the relevant pension and insurance regulations in Kenya,” Fahari says in its latest annual report. “The targeted transactions will be implemented through asset-for-unit swaps.”


https://www.businessdail...1618-241336z/index.html




It can go either way.

Which ever way it is a win to minority shareholders.

EITHER
It is delisted by the Ndegwas buying from minority shareholders
at a premium like say 15 bob per share, thereby keeping it as a closed
family business
OR
They expand the property portfolio by partnering or raising more capital which may cause temporary dilusion but on the long term it will drive growth to the extent that the REIT will be worth 25 to 30 bob per share in 3 to 5 years time.


Events will unfold by q1 2020. It seems the
current management will still be in charge up to FY 2019. I predict marginal increase in dividend for FY 2019 to 80 cents from 75 cents the previous year based on their good HY 2019 results.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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Ericsson
#37 Posted : Friday, November 08, 2019 4:21:05 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
wukan wrote:
Ericsson wrote:


ICEA may delist the REIT


How will delisting the REIT benefit ICEA? They actually need it as listed for purposes of rebalancing portfolio.

Quote:
Real estate fund Stanlib Fahari I-Reit plans to acquire more properties from pension firms and insurers who will be compensated in the form of shares, also known as units, in the Nairobi Securities Exchange-listed firm.

The proposed transactions are designed to eliminate the need for Fahari to raise large sums of new capital to buy more buildings.

The deals will dilute existing shareholders of the company but will also expand the pool of income-generating buildings owned by the fund, raising earnings for the expanded investor base.

For the insurers and pension firms, the transactions will help them comply with regulations limiting the amounts of capital they can invest in properties relative to their total assets.

“In the year ahead, we aim to deliver on our growth strategy, which entails partnering with pension schemes as well as insurance companies that are currently overweight with investment property and desire to rebalance their portfolios in line with the relevant pension and insurance regulations in Kenya,” Fahari says in its latest annual report. “The targeted transactions will be implemented through asset-for-unit swaps.”


https://www.businessdail...1618-241336z/index.html


That has been overtaken by the recent events.We don't know the direction ICEA will take.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#38 Posted : Friday, November 08, 2019 4:23:13 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
young wrote:
wukan wrote:
Ericsson wrote:


ICEA may delist the REIT


How will delisting the REIT benefit ICEA? They actually need it as listed for purposes of rebalancing portfolio.

Quote:
Real estate fund Stanlib Fahari I-Reit plans to acquire more properties from pension firms and insurers who will be compensated in the form of shares, also known as units, in the Nairobi Securities Exchange-listed firm.

The proposed transactions are designed to eliminate the need for Fahari to raise large sums of new capital to buy more buildings.

The deals will dilute existing shareholders of the company but will also expand the pool of income-generating buildings owned by the fund, raising earnings for the expanded investor base.

For the insurers and pension firms, the transactions will help them comply with regulations limiting the amounts of capital they can invest in properties relative to their total assets.

“In the year ahead, we aim to deliver on our growth strategy, which entails partnering with pension schemes as well as insurance companies that are currently overweight with investment property and desire to rebalance their portfolios in line with the relevant pension and insurance regulations in Kenya,” Fahari says in its latest annual report. “The targeted transactions will be implemented through asset-for-unit swaps.”


https://www.businessdail...1618-241336z/index.html




It can go either way.

Which ever way it is a win to minority shareholders.

EITHER
It is delisted by the Ndegwas buying from minority shareholders
at a premium like say 15 bob per share, thereby keeping it as a closed
family business
OR
They expand the property portfolio by partnering or raising more capital which may cause temporary dilusion but on the long term it will drive growth to the extent that the REIT will be worth 25 to 30 bob per share in 3 to 5 years time.


Events will unfold by q1 2020. It seems the
current management will still be in charge up to FY 2019. I predict marginal increase in dividend for FY 2019 to 80 cents from 75 cents the previous year based on their good HY 2019 results.


ICEA may even sell off the properties under Fahari REIT distribute the proceeds to the other shareholders and remain with the balance.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#39 Posted : Friday, November 08, 2019 4:27:29 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
The main gem that ICEA sees in Stanlib Kenya is the fund management business and asset management.
Stanlib is number 3 after Sanlam Investments and Genessis Africa
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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wukan
#40 Posted : Friday, November 08, 2019 5:11:45 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
Ericsson wrote:


ICEA may even sell off the properties under Fahari REIT distribute the proceeds to the other shareholders and remain with the balance.


REIT is a trust and so very different from companies. The Trustee is the one who takes care of the common interest of unit holders. The trustee has powers to remove the REIT manager if it is desirable in the interest of the unit holders. There is a lot more protection for unit holders in the trust deed unlike a company.
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