Aew Uk Reit Share Discussion Threads

[chucko1] 05/1/2021 13:01

I'm often good at managing the alcohol - this has been helpful.

[spangle93] 05/1/2021 12:40

You're lucky to be in a position at least have intelligent things to say about some subjects ;-)

[chucko1] 05/1/2021 12:36

They crossed a threshold - that would do it. In this case, they started at 6.00% and crossed the 5% level.

There may be some more complex rules while executing large trades that take time to execute, but I am no expert on that. For example, you might be looking to sell 15% of a company and do not know a priori how it might play out, and there will be protection against revealing your hand mid-execution. Hence certain rules for (much smaller) large market trades where reporting delays are staged according to the size of transaction.

As I have never been a trader of large UK equity blocks, I really have no further intelligent things to say (well, at least on this specific subject!!).

[spangle93] 05/1/2021 12:22

chucko - doesn't the issuing of a TR1 suggest that their selling is at least paused? AIUI you are not obliged to issue TR1's if you are still actively accumulating or dispersing a holding?

[chucko1] 29/12/2020 16:38

This was a jump a long time coming. It would appear that the seller of the past 3 weeks (there were always around 400k shares on the offer) has either backed off on the recent Brexit news/AZN/Oxford or was largely or wholly taken out. I suspect the latter.

[badtime] 29/12/2020 16:12

Perky today

[loglorry1] 22/12/2020 17:41

Yes and they can't cover the dividend with income yet.

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Yes, but there is a difference between those that cannot cover their dividends (relying on growth) and those that can,

[gary1966] 22/12/2020 16:28

Well I decided to enter the fray at a smidge under 75p today. If the divi was temporarily cut to the 6p area, which I don't expect as 8ppa seems to be almost set in stone, then they still yield 8% at that price which I am happy with. Quality outfit that seems to have come through COVID pretty much unscathed in terms of NAV. Share price has taken a knock which means some nice capital growth baked in as well.

GLA

[chucko1] 22/12/2020 16:10

Yes, but there is a difference between those that cannot cover their dividends (relying on growth) and those that can, but elect to obtain better value for their shareholders by being patient with spare cash (earning nothing).

I see some that will clearly return to full dividend cover and only cut out of prudence. Some small permanent loss of value, perhaps, but little damage done. Also, the return to near-zero rates benefits the strong parts of the sector, so this loss of value is offset. On that basis, significant capital growth is possible.

Anyway, if everyone held the same opinion, this would not be so interesting!

[nickrl] 22/12/2020 14:18

Chucko all of us have our own ways of assessing and selecting stocks and mine has been amended as a result of getting burnt by the REITs that were running uncovered dividends taking the axe to them in March/April so they could afford them. So thats my concern with AEWU which i don't hold but is my current target since I bailed out of PCA. For sure they can hold the dividend for many qtrs off sale proceeds but I would rather they use there skills (that shareholders pay for) to keep doing what they do best and invest those proceeds.

Also given the yield the share price ought to have reacted more favourably but has been stuck in this trading range for sometime.

Anyhow looks like in around 3 wks time we will get NAV update and divi declaration to see either way.

[chucko1] 22/12/2020 10:26

The only thing that jeopardises the current dividend is a reduction (and probably quite a significant one) in rent collection. The temporary, and voluntary, uncovered metric is totally irrelevant. Is anyone seriously arguing they should have held off taking significant capital gains just so that they could for a time maintain the current income? On the property in question, the income per quarter is around 1/30th of the gain (order of size as precise definition is arguable).

The management (and by implication, the Board) have made that increasingly clear since April when there was significant uncertainty. Of all the REITs I am aware of other than warehouse or infrastructure, none have signalled their intentions more clearly. Neither intention or ability to enact it! And restated yesterday as clearly as is humanly impossible without formally declaring it!

This is my point, and I note how long this argument has continued on this board. Remarkable, but illuminating for traders.

[redhill9] 22/12/2020 10:08

Meanwhile it's possible to buy at a healthy discount to NAV and earn a yield of over 10.5%, which looks like being maintained. On a risk/reward basis this looks good to me.

[loglorry1] 22/12/2020 07:51

Chucko why all the aggression? The divi is uncovered and so not safe. The discount to NAV and very high yield compensates for that. It won't rerate much until the divi is covered again. Their stated intention is to achieve this by investing cash executing well.

Its not rocket science really. The managers know what they are doing so we just have to see if they can achieve it. A lot of things are out of their control but they seem to be well positioned to achieve it.

[nickrl] 21/12/2020 22:41

Useful presentation to get some insight into where there strategy is especially interesting there plans for the retail assets. The Inv Mgrs might be confident on maintaining the dividend but recent sales, at great profits, have further eroded cover so they will need to eat into cash pile to cover. Still feel it would be prudent to reduce the divi until there is more certainty on having rental income to cover it.

[chucko1] 21/12/2020 18:43

Perhaps try this:



But you do need to register (free).

[chucko1] 21/12/2020 18:16

Should be on their web site soon, but does not seem to be yet.

www.aewukreit.com

[loglorry1] 21/12/2020 17:57

Do you have a link for presentation please?

[chucko1] 21/12/2020 17:50

Precisely, and especially that the timing of reinvestment was entirely in their hands. I would encourage anyone still persisting with an alternative opinion to download the presentation given today.

[shieldbug] 21/12/2020 17:01

They clearly said the divi was in the hands of the directors, while clearly signalling that it would very likely be held at 2p, on the basis that once they were fully invested they would be covering the divi with earnings.

[chucko1] 21/12/2020 10:50

Perfectly clear from the in-progress presentation that they intend to continue with the 2p dividends. And for reasons that I think are so obvious, that I am not bothered to repeat them.

Feel free to disagree, and lose money.

[nickrl] 15/12/2020 10:31

easy enough to register if anyone interested