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Stanlib Fahari FY18
Rank: Chief Joined: 1/3/2007 Posts: 17,116 Location: Nairobi
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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. In my limited experience with them, they will pad their pockets first. You can see that in NIC and Unga. 1) They own Tysons or Lloyd Masika which manages properties. They would give the business to Tysons/LM. 2) They could merge their properties with FAHR at inflated prices and increase their shareholding in FAHR. They tried to sell Ennsvalley to Unga for 1bn in shares. When that failed, they sold Ennsvalley to Unga for cash. Ennsvalley was a disaster for Unga with losses and write-offs. Nevertheless, good luck to shareholders in FAHR. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 17,116 Location: Nairobi
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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. Good luck if you think the Ndegwas will pay a premium. Look at Unga as an example. They sold loss-making Ennsvalley to Unga at a huge premium for their benefit. They partnered with Seaboard to buy out minority shareholders of Unga at a huge discount. Why would they act any different in this case? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 8,592 Location: NAIROBI
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VituVingiSana wrote: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. Good luck if you think the Ndegwas will pay a premium. Look at Unga as an example. They sold loss-making Ennsvalley to Unga at a huge premium for their benefit. They partnered with Seaboard to buy out minority shareholders of Unga at a huge discount. Why would they act any different in this case? @vvs good analysis Explain to them
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Rank: Member Joined: 9/27/2006 Posts: 446
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How would the tax-exempt status of the REIT factor in this discussion?
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Rank: Member Joined: 8/10/2014 Posts: 826 Location: Kenya
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Ericsson wrote: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 These ultra wealthy individuals just want to decrease our investment options. Too many are delisting
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Rank: Elder Joined: 12/4/2009 Posts: 8,592 Location: NAIROBI
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watesh wrote:Ericsson wrote: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 These ultra wealthy individuals just want to decrease our investment options. Too many are delisting Yes and concentrate wealth amongst themselves
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Rank: Chief Joined: 1/3/2007 Posts: 17,116 Location: Nairobi
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watesh wrote:Ericsson wrote: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 These ultra wealthy individuals just want to decrease our investment options. Too many are delisting Instead of complaining about the lack of REITs, you and others (including some Wazuans) should get together and create a REIT. I believe there are many Wazuans with: Plots of land all over the country. Rental - residential, commercial and industrial - buildings and properties. Farms. Get together. Fairly value the properties. Lump them together in one SPV/REIT. Elect a board. Appoint a management team. Acquire more properties. Become wealthy. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 17,116 Location: Nairobi
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Instead of complaining about the delisting and lack of REITs, Wazuans like @Watesh and @ericsson should get together and create a REIT. I believe there are many Wazuans with: Plots of land all over the country. Some in prime locations. Rental - residential, commercial and industrial - units, buildings and properties. Farms. Get together. Set up a structure. Fairly value the properties. Lump them together in one SPV/REIT. Elect a board. Appoint a management team. Acquire more properties. Become wealthy. *FAHR is/was looking at acquiring more properties using FAHR shares. So can Wazua REIT. Offer space to upcoming entrepreneurs. Take a stake in their businesses. Form a conglomerate or an Investment Firm. *Centum is a collection of businesses. Carbacid has investments, land, a factory and a mine/well. Flame Tree manufactures food items, water tanks and beauty products. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/20/2007 Posts: 1,928 Location: Lagos, Nigeria
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REIT NOT LIKELY TO BE DELISTED AFTER ALL BECAUSE OF TAX BENEFIT TO INVESTEE COMPANY. As per the latest cytonn report REIT will be of benefit to ICEA so it is almost out of question for it to be delisted. Excerpts below :- As for the approved Finance ACT 2019 amendment assented by the president, the income of REITs investee companies have been exempted from income tax and thus translates to higher profits from the investees Previously only the income of REITs were exempt from corporate tax. This amendment aims at the flexibility of REITS in making investments and thus attract more investor interest in buying into the product. https://cytonnreport.com...ts-report-2019#equities
This is a great incentive from GOK to the REIT market. 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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Rank: Member Joined: 4/23/2014 Posts: 744
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Stanlib Fahari I-REIT - Proposed Disposal of Stanlib Kenya Ltd“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Member Joined: 8/10/2014 Posts: 826 Location: Kenya
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young wrote:REIT NOT LIKELY TO BE DELISTED AFTER ALL BECAUSE OF TAX BENEFIT TO INVESTEE COMPANY. As per the latest cytonn report REIT will be of benefit to ICEA so it is almost out of question for it to be delisted. Excerpts below :- As for the approved Finance ACT 2019 amendment assented by the president, the income of REITs investee companies have been exempted from income tax and thus translates to higher profits from the investees Previously only the income of REITs were exempt from corporate tax. This amendment aims at the flexibility of REITS in making investments and thus attract more investor interest in buying into the product. https://cytonnreport.com...ts-report-2019#equities
This is a great incentive from GOK to the REIT market. They might as well list a good portion of their properties under the REIT to enjoy the tax benefits
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Rank: Veteran Joined: 11/13/2015 Posts: 1,410
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watesh wrote:young wrote:REIT NOT LIKELY TO BE DELISTED AFTER ALL BECAUSE OF TAX BENEFIT TO INVESTEE COMPANY. As per the latest cytonn report REIT will be of benefit to ICEA so it is almost out of question for it to be delisted. Excerpts below :- As for the approved Finance ACT 2019 amendment assented by the president, the income of REITs investee companies have been exempted from income tax and thus translates to higher profits from the investees Previously only the income of REITs were exempt from corporate tax. This amendment aims at the flexibility of REITS in making investments and thus attract more investor interest in buying into the product. https://cytonnreport.com...ts-report-2019#equities
This is a great incentive from GOK to the REIT market. They might as well list a good portion of their properties under the REIT to enjoy the tax benefits They have clarified their position. They don't need those properties in the REIT. They have way better prime real estate. Quote:The transaction has sparked speculation that the Ndegwas could sell some of their buildings to the Reit in exchange for shares. Others are assuming that the family could also buy out the property fund manager, which is trading at less than half of its net asset value per share of Sh20.2. The Reit’s shares hit highs of Sh9 on Friday after the deal was announced. Sources privy to the deal told the Business Daily that ICEA currently has no plans to acquire shares in the Reit.
“Buying or selling shares in the Reit is not part of this transaction,” a source said, adding that current owners including Stanlib (with a 10.2 percent stake) could still sell their holdings to any party in the future. https://www.businessdail...4610-12nkq6d/index.html
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Rank: Elder Joined: 12/4/2009 Posts: 8,592 Location: NAIROBI
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Consideration price for the 100% estimated at ksh.1.5bn
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Rank: Veteran Joined: 1/20/2011 Posts: 1,719 Location: Nakuru
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Ericsson wrote: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 Dumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 6/20/2007 Posts: 1,928 Location: Lagos, Nigeria
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wukan wrote:watesh wrote:young wrote:REIT NOT LIKELY TO BE DELISTED AFTER ALL BECAUSE OF TAX BENEFIT TO INVESTEE COMPANY. As per the latest cytonn report REIT will be of benefit to ICEA so it is almost out of question for it to be delisted. Excerpts below :- As for the approved Finance ACT 2019 amendment assented by the president, the income of REITs investee companies have been exempted from income tax and thus translates to higher profits from the investees Previously only the income of REITs were exempt from corporate tax. This amendment aims at the flexibility of REITS in making investments and thus attract more investor interest in buying into the product. https://cytonnreport.com...ts-report-2019#equities
This is a great incentive from GOK to the REIT market. They might as well list a good portion of their properties under the REIT to enjoy the tax benefits They have clarified their position. They don't need those properties in the REIT. They have way better prime real estate. Quote:The transaction has sparked speculation that the Ndegwas could sell some of their buildings to the Reit in exchange for shares. Others are assuming that the family could also buy out the property fund manager, which is trading at less than half of its net asset value per share of Sh20.2. The Reit’s shares hit highs of Sh9 on Friday after the deal was announced. Sources privy to the deal told the Business Daily that ICEA currently has no plans to acquire shares in the Reit.
“Buying or selling shares in the Reit is not part of this transaction,” a source said, adding that current owners including Stanlib (with a 10.2 percent stake) could still sell their holdings to any party in the future. https://www.businessdail...4610-12nkq6d/index.html
Attached business daily report is ambiguous neither here nor there and therefore unsure of the true facts. Read again line by line. All information from business daily on this subject matter are mere speculation and hearsay. That is why the author is using OTHERS ARE ASSUMING THAT and the phrase SOURCES PRIVY TO THE DEAL....... 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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Rank: Elder Joined: 6/20/2007 Posts: 1,928 Location: Lagos, Nigeria
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https://businesstoday.co...ltd-buys-stanlib-reits/
QUOTE THIS DEAL GIVES ICEA A SHORT CUT TO REIT MANAGEMENT BUSINESS, WHICH THEY HAVE EARLIER PLANNED TO START FROM SCRATCH. UNQUOTE 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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Rank: Elder Joined: 6/20/2007 Posts: 1,928 Location: Lagos, Nigeria
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https://www.businessdail...03702-3x196xz/index.htmlThe 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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Rank: Elder Joined: 12/4/2009 Posts: 8,592 Location: NAIROBI
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By end of 2018, Stanlib was among 5 cash-strapped listed companies that the capital markets regulator called out for operating below the required capital and liquidity limits. Stanlib has since announced it will sell its Kenyan operations to @icealion
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Rank: New-farer Joined: 2/8/2018 Posts: 67
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Rank: Elder Joined: 9/23/2009 Posts: 7,813 Location: Enk are Nyirobi
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RIEK01 wrote:https://www.the-star.co.ke/business/kenya/2020-03-03-stanlib--icea-real-estate-deal-approved/ South Africans really struggle making money in Kenya. Life is short. Live passionately.
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