The Local Shopping Reit Share Discussion Threads

[hillofwad] 13/9/2016 12:49

Cochy any chnaceof cutting and pasting ST's piece

[cockerhoop] 13/9/2016 12:23

ST talks LSR (and THAL) in todays IC column

[hillofwad] 13/9/2016 09:46

NTV The problem with the portfolio is that its stuffed full of secondary property There are over 300 properties under £500k .-all private investor fodder They have failed to shift in the last 12months a portfolio of them despite doing the rounds to release value so perhaps the time has come to shift the company from zombie mode .There have been a lot of changes since July 2013 I cant see at anything more than 36p/38p per share there is sufficent upside to make it worthwhile for someone like Thalsassa to get stuck into this .A lot of hard work for insufficent reward

[hillofwad] 13/9/2016 07:20

Thalassa have reported Interim Results today .You can see why they are diversifying!!Interesting read especially the off piste narrative by the Chairman Looking forward to a sharkbite size of more shares to keep this share price whizzing
Extarcts below

"Thalassa is a holding company, currently with two operating subsidiaries. For the past three years we have scoured various industries looking for appropriate (good value) acquisitions, without success. We believe that the environment is changing and we have recently identified a number of potentially interesting situations; a good sign but no guarantee that we will succeed in acquiring any of the companies that we have identified. I should make it clear that the three situations we have identified are not in the Energy Services sector. We will of course keep shareholders appraised as and when we have news to announce."


As announced in the Company's RNS of 12 September 2016, the Company is beneficially interested in 19,093,376 shares of The Local Shopping Reit plc ("LSR"), which represents 23.14 per cent of its issued share capital. The Board of Thalassa will be seeking to engage with the Board of LSR with a view to reviewing and changing LSR's investment policy approved in July 2013.

[scburbs] 12/9/2016 21:20

Get LTV down to 35-40%, cut costs and then become a high yield share. With the yield spread over debt pricing this would be a great strategy. The wind up strategy isn't really working and a yield play would be much better. Key question is who should/can deliver it, at a sensible price.

[ntv] 12/9/2016 17:44

lots more changing hands today plus a delay from friday i presume
looks like the property needs a hands on management team rather than just stick a few in an auction team.
maybe working with tennants to buy their own prperty is a much better way to realize value here
interesting times ahead with a new large shareholder racing towards 29.99%

[scburbs] 12/9/2016 15:29

The company has already disclosed the implications of one new strategy. They would be able to pay a distribution yield of 6% against the NAV of 43p. If they change to this strategy it should provide for a material increase in the share price given the current yield is much higher.

However, with the high yield properties and low cost of debt they should be yielding way over 6% of NAV so clearly some material cost cutting needing in this strategy to achieve an even higher yield on NAV.

"The Directors will continue to keep the dividend policy under review and will consider reinstating distributions when this is justified by the Company's overall financial position and the prospects for ongoing income generation. The current recurring income (adjusted for an estimate of the reduced cost of debt and property sales during the period) implies a recurring EPS of 2.6 pps and an EPS yield of 9% on the closing mid-market price of 29.29p on day prior to this report. However, future recurring income may be affected by factors such as further asset sales and changes in the Company's cost of debt."

[redhill9] 12/9/2016 15:11

I thought Skyship's suggestion in post 1417 an imaginative way out of the doldrums.

[hillofwad] 12/9/2016 12:56

Eeza Well sounds definitely time for a change of policy.Centros have been on the job for 3 years The market is quite frothy for secondary kit Looks like the new face will stir the pot Strong hold

[hillofwad] 12/9/2016 11:56

Yes agreed but their active sales programme seems to have stalled possiby dueto investo rinterest but why not go further still in cost reductions just put all the properties into one of the large surveying practices to manage and dispose .Internos are charging fees for merely rubber stamping sales Suurely the existing directors can do that and no doubt theres are agents fees incurred on top of that too They have shifted most of the larger lot sizes and £4m since last September is baffling

[gfrae] 12/9/2016 11:44

Internos replaced the previous management, which cost more. I dont believe LSR have any direct employees, and they already do use local agents.
I agree its good to see a new shareholder.

[hillofwad] 12/9/2016 10:54

Internos have now served their purpose .Having shifted £93m worth of kit in the 6 months to March they sold a miserly £4m worth An expensive admin layer . Bearing in mind 90% of the number of properties currently in the portfolio are under £500k ibn value it would be a lot cheaper to instruct regional agents at 1 or 1.5% to get shot or at auction where prices have held up. New Rating Lists coming out 30th September revaluation coming through shortly which is going to help the small shopkeeper

Great to see a new shareholder picking up the baton of change

[gfrae] 12/9/2016 10:34

thanks.eeza

[eeza] 12/9/2016 10:18

Damille investments. Activist s/holder.

[gfrae] 12/9/2016 10:08

Who is DIL, Skyship ?

[skyship] 12/9/2016 09:18

What will DIL think about all of this? Changing the investment policy doesn't sound very encouraging...

[hillofwad] 12/9/2016 08:54

They have been trying to shift the properties in portfolio lumps .This seems to ahve ground to a halt. The majority of the assets are under £2m which is ideal for the private investor and/or owner occupier.Interesting that Allsopps in March valued the portfolio last time who no doubt would have advised them that auction was the best medium for obvious reaons .Looks like the BODS had other ideas

[redhill9] 12/9/2016 08:27

Yes, that could mean good or bad for those of us looking for LSR to sell the assets. Maybe they wan't to discontinue sales and manage the assets as an ongoing portfolio or merge with another fund. Interesting. I see the share price isn't impressed this morning.

(Edit: actually the share price is holding up well this morning compared to everything else!)

[eeza] 12/9/2016 07:41

"Following this further share purchase and the resultant wholesale changes to the shareholder register of LSR, the Board of Thalassa intends to engage with the Chairman of LSR as soon as practicable, with a view to reviewing and changing LSR's investment policy approved in July 2013."

[cwa1] 12/9/2016 07:39

Hmmmm. This is finally starting to warm up and look interesting.....

[hillofwad] 11/9/2016 11:33

He would have been the hardest nut to crack

[tiltonboy] 11/9/2016 10:57

It may be too simplistic, and a complete co-incidence, but the number of shares held by Whateley ended in 376, as did the number acquired by THAL.

[skyship] 11/9/2016 10:46

All rather intriguing; and hopefully more will be revealed tomorrow with a "Holdings" RNS...