Schroder Real Estate Inv... Share Discussion Threads

[joe say] 08/1/2014 07:18

Accretive not dilutive

[skinny] 19/11/2013 07:01

Schroder Real Estate Investment Trust today announces its results for the six months ended 30 September 2013.
Financial Highlights
· Profit before tax of £4.2 million (30 September 2012 loss of: £3.3 million)
· Net Asset Value per share 45.4p (31 March 2013: 45.1p)
· Underlying earnings per share 1.2p (30 September 2012: loss per share 1.0p)
· Dividend of 1.5p per share paid for the six months to 30 September 2013
· Total shareholder return of 13.2% for the period
· Underlying property portfolio delivered total return of 5.2% outperforming the IPD index which delivered 4.2%

Operational Highlights
· Completion of new £129.6 million long term refinancing
· Conditional disposal of Reynards Trading Estate, Brentford for a base price of circa £20 million, subject to the purchaser achieving residential planning consent, at their own cost
· Progress at Olympic Office Centre, Wembley:
o Conditional sale agreed on one element for £7.4 million, subject to full planning being secured for 200,000 sq ft student accommodation
o Outline consent secured for a further 200,000 sq ft of mixed use development
o Valuation post asset management activity increased from £16.5 million to £21 million over the period
· Reduction in the portfolio void rate as a percentage of rental value from 14.4% to 13% (30 September 2013)

[skinny] 22/10/2013 16:02

I agree - I have these from @39 and am quiet happy to hold and forget for now.

[redsonning] 22/10/2013 15:52

The property sector is, in general, no longer available at a discount to NAV. This will continue whilst the market now perceives that there are further rises to come in underlying property valuations. The balance sheet of SREI has been improved, as has the cash coverage of dividend. The bulk of the loan position is in place until 2028. The rentals are being improved and the non-performing assets are gradually being dealt with.
Nothing wrong with this company - in my opinion no prospect of seeing anywhere near 43p again until the next property crash.
Charts are entirely useless for this kind of company - it's all about asset management and underlying asset value.

[skyship] 09/10/2013 18:34

Investec today announced a further reduction - down to 46.2m from 47.9m shares.

Question for holders is whether the 2013 uptrend will hold; or whether better to sell now and buy back after a retracement.

The FIB stats suggest any pullback may be limited - perhaps to c42.5p/43.0p where the share price should again gain support from the rising 200day MA

[skinny] 20/9/2013 11:53

The Company announces that it has received resolution to grant planning permission for its two applications submitted to Brent Council in connection with the Olympic Office Centre in Wembley and the adjoining site.

As set out in the Company's announcement on 18 September 2013, these comprise an outline consent for a 400,000 sq ft mixed use scheme on the site together with a detailed consent for a new multi-storey car park at the base of the Olympic Office Centre. Brent's Planning Committee resolved to delegate the agreement of the level of affordable housing and the section 106 agreement to planning officers.

Also as announced on 18 September, the Company has agreed to sell a one acre plot, comprising part of its Wembley site, for £7.4 million to a wholly owned subsidiary of The UNITE Group plc ('UNITE'). As a result of this planning approval, UNITE will now make a detailed planning application for 200,000 sq ft of student accommodation comprising approximately 684 rooms and ancillary retail. Completion of the disposal to UNITE is conditional upon them achieving a detailed planning permission.

In parallel with UNITE's detailed planning application the Company will work up plans for its remaining one acre site that is capable of being developed or sold in isolation. The outline consent for this site totals 200,000 sq ft and permits a range of uses including residential, hotel and offices.

This resolution to grant consent from Brent Council is a significant step forward for the Company's strategy to maximise value from the substantially non-income producing sites.



-ENDS-

[redsonning] 18/9/2013 09:49

We had some discussion back in May, about whether to hold or dispose of SREI at what was then a price of around 40p. I have been reasonably satisfied with a rise of 20% since then, following my Hold decision. Apart from the fact that the underlying property sector is starting to look generally interesting to others this particular company continues to improve its portfolio position, and has some way to go.
I shall therefore be continuing to hold, and am likely to do so for some considerable time yet.

[skinny] 18/9/2013 09:11

The Company announces it has agreed to sell a one acre plot, comprising part of its Wembley site, for £7.4 million. It has exchanged contracts with a wholly owned subsidiary of The UNITE Group plc ('UNITE'), with completion subject to planning.

[skinny] 13/9/2013 15:53

Conditional contracts exchanged to sell Reynards Trading Estate in Brentford to Notting Hill Home Ownership

The Company announces it has exchanged conditional contracts to sell Reynards Trading Estate in Brentford to Notting Hill Home Ownership ("Notting Hill") for a base price of £20 million, with completion subject to securing a residential planning permission.

Reynards Trading Estate comprises a six acre, 170,000 sq ft, substantially vacant industrial estate located in a mixed-use area. As at 30 June 2013 Reynards Trading Estate was valued at £16 million and produced short term income of £200,000 per annum. The Company's strategy has been to secure residential planning permission and sell. In March 2013 a residential planning application with a net sales area of 220,000 sq ft was refused by the Secretary of State following a planning appeal.

The contract obliges Notting Hill to use all reasonable endeavours to pursue a residential planning permission at their own cost. The base price of £20 million (which could be lower if section 106 and other planning agreement costs exceed the expected level) increases by £116.70 for each additional square foot of net sales area secured by a planning permission above 176,000 sq ft.

The contract obliges Notting Hill to make a pre-planning application and carry out local community consultation during 2013 and early 2014, with the planning application submitted shortly thereafter. During this period the Company will continue to be responsible for managing Reynards Trading Estate and will receive the rental income. The contract has a long stop date of 31 December 2014 which is capable of extension if a planning decision is awaited.

Whilst exchanging conditional contracts with Notting Hill is an important step to potentially realising value from Reynards Trading Estate, there continues to be uncertainty regarding the timing and prospects for achieving a residential planning permission.



-ENDS-

[skyship] 02/9/2013 08:54

As I've said before, I was obviously wrong to take profits lower down; but I never thought they'd climb to a premium to NAV!

With the secondary market outside London finally turning around, shareholders might expect the NAV to now climb; but even so, these are surely priced to perfection. Investec now reducing and Liberum not really seeing any upside from here.

Plenty of good discounts still available elsewhere - CIC & DSC (both c25%); then the two liquidating propcos APT & LSR.

[skinny] 02/9/2013 08:34

Liberum Capital Hold 44.25 45.50 36.00 47.00 Reiterates

[topvest] 16/7/2013 07:52

Looks well set from here in my view.

[skinny] 16/7/2013 07:07

Financial Highlights

· Net Asset Value of 45.1 pence per share ('pps') (31 March 2012: 50.6 pps)
· EPRA earnings of 2.1 pps (31 March 2012: 1.6 pps)
· Loss before tax of £10.8 million (31 March 2012 profit before tax: £12.1 million)
· Dividend declared and paid of 3.52 pps for the 12 months to 31 March 2013 (31 March 2012: 3.52 pps)
· Share price total return of 33.2%

Operational Highlights

· Disposal of seven properties for £67 million reflecting a 6% average premium compared to the valuations as at 31 March 2012, with proceeds used to pay down £59 million of securitised debt
· On 16 April 2013 a new £129.6 million long term loan facility was concluded with Canada Life allowing repayment of the remaining £114.5 million securitised loan in full that matured in July 2014
· The new loan is at a total margin of 4.77% compared with the securitised loan margin of 5.72%, generating a saving in interest and related costs of approximately £0.8 million per annum
· Dividend revised to a more sustainable level of 0.62 pence per share per quarter, which, together with the refinancing, puts the Company on a solid platform to take advantage of future opportunities

[jodi17qad] 12/6/2013 11:02

Am I right in thinking that Lowland IT, another Henderson Trust have only recently increased their holding?

[flying pig] 11/6/2013 08:27

Witan (who have a good performance record) are reducing holding. They obviously see value elsewhere.
Does this suggest other holders should be thinking of moving to new investments.

[skinny] 22/5/2013 10:33

Skyship - excuse my ignorance - TMF?

On edit - the mottley fool?

I don't really know much about the site.

[skyship] 14/5/2013 17:29

O/T - Skinny - do you think perhaps the average ADVFN user is younger than the average TMF user? I would tend to agree with such a supposition...

[skinny] 14/5/2013 15:32

Skyship - I guess that's largely down to the demographics of this site.

[nickadv] 14/5/2013 15:30

Thanks Nick