Aew Uk Long Lease Reit Share Discussion Threads

[skyship] 25/2/2020 16:19

Today's Update - see Header - would certainly seem to underwrite the current share price A 21% discount & 7.4% yield represents pretty good value versus other REITs.

This snippet seems pretty unrealistic however:

"The Board, along with the Group's advisers, is continuing to seek longer term solutions to expand the Group, including the introduction of new capital, and to deliver further shareholder value."

I still believe a trade sale or voluntary liquidation would be the best way to deliver shareholder value.

[spectoacc] 18/2/2020 06:55

@2wild - tell that to Linkers. I see c.95p as fair value, but takes two to make a market.

[edinandy] 17/2/2020 19:07

I'd question the likely ERVs of some long income portfolios - how achievable are they in the open market? Indexation are least gets us something.

[2wild] 17/2/2020 18:45

With inflation at 1.3% and forecast to drift lower, index linking is becoming more of a hindrance than a benefit. Ithink 75p is fair value.

[edinandy] 17/2/2020 17:06

It's more of a concern while no manager or plan. At the moment it's ok if you get out right. I suspect they will sell to one of the other reits soon.

[williamcooper104] 14/2/2020 22:50

The index yielding is largely illusionary It'll last, for a while/quite while until it doesn't, when tenant goes bust and market ERVs haven't kept pace with inflation

[williamcooper104] 14/2/2020 22:47

So true; v glad I bailed out on that one when I realised that being having difficulty selling (had a v large position at the time relatively) meant that no matter how safe the asset class was it was better just not to be in it in a major way And ground rents really are a truly AAAA (as in better than gilts) asset class in terms of pure credit risk - but they've got a huge amount of political risk Commercial ground rents have more credit but much less political risk (consenting adult/corporates as tenants not individuals) but alas as a private investor you can't access them

[spectoacc] 14/2/2020 12:37

And how often does that "certainty" turn out to be anything but!

GRIO a case in point, with their rock-solid (not) ground rents fund.

[chucko1] 14/2/2020 12:15

HP, it’s not that I am unaware of the risks, but prefer the higher yielding opportunities that are not really available to those who require certainty. Or are unwilling or unable to exercise patience.

[spectoacc] 14/2/2020 11:47

@HP - I nearly added "...And the NAV discount more than covers another Meridian scenario..", but thought better of it ;) Hopefully lightening won't strike twice, but who knows - at least the market for re-letting is buoyant atm.

[skyship] 14/2/2020 10:28

HP - that is why the share price is where it is! All in the price; and the price now provides clear value.

[hugepants] 14/2/2020 09:58

The administration of Meridien shows the risks surely? Index linked yields aren't much use if the tenant goes bust. And dividend certainly not covered this year.

[spectoacc] 14/2/2020 09:06

AEW done as investment manager on 9th April, with no clarity as yet on who'll be taking over.

Not sure if that's going to lead to selling pressure (insts AEW ramped into it), followed by buying pressure (new manager's acolytes coming in instead).

Either way, as many have pointed out, we've a strong yielder, with NAV protection, very long average time to breaks, divi coverage restored next year, and a large amount of index-linking.

Sub-scale, but one of the very few not to have rallied hard post-GE.

[rcturner2] 14/2/2020 08:59

I bought into this recently, it is just an income share for me, I am not concerned about the share price/NAV position.

[chucko1] 14/2/2020 08:54

But just to point out that we got the dividend again for free yesterday. The bid remains where it was with trades actually going through near to mid market.

That said, it did just the same thing three months ago and then drifted back to near 71p. But at 7.5% covered yield, even this is perfectly tolerable, although decent upside remains (likely, in my opinion).

[skinny] 11/2/2020 15:16

That's a reasonable dividend in a couple of days! @£6,850.

[edinandy] 11/2/2020 15:15

Must know something we don't....

[skyship] 11/2/2020 14:05

OK - come on, own up - who just bought 500k @ 74p?

[skyship] 10/2/2020 16:51

Volume picks up as price steadies:


free stock charts from uk.advfn.com

[chucko1] 08/2/2020 14:18

Priorities ...

[playful] 07/2/2020 15:58

I will add 50 once I finish my coffee

[chucko1] 07/2/2020 12:28

Added a few too.

[skinny] 07/2/2020 11:57

Back off holiday last night - I've added a few across 3 accounts this morning.

[spangle93] 07/2/2020 11:52

In that scenario, for what would the cleaners be needed? ;-)

Have to fess up that I added yesterday too, with results better than anticipated, although I was out til the afternoon and didn't get the earlier prices