Alpha Real Share Discussion Threads

[russman] 04/5/2014 15:49

Why is there no dividend yield showing? I am getting a divi.

[sladdjo] 03/1/2014 09:53

I think that this looks good value. Bit confusing with mgmt. taking fees and investing ARTL in other funds where the same mgmt. takes fees, but invested funds rebate fees to ARTL so only paying one set of fees and Alpha Real Estate owns a large part of ARTL, so unlikely to hurt their own investment.

As Spain continues to improve, its likely that the Spanish shopping centre will increase its occupancy rates and rents, which should all flow through to the bottom line for ARTL.

Finally, ARTL has a bit less than 40% in cash/FIAF, which they are looking to reinvest in higher yielding assets. If they are able to reinvest the assets at 8 to 10% return, then the dividend will also likely be significantly increased and the market could rerate the shares accordingly. All IMHO and DYOR.

[colonel a] 03/10/2013 07:45

Yes, I'm tempted to go further with ERET as the discount has not narrowed as much as I would have expected.
I looked at LSR {possibly missed the boat} but was bothered by the high LTV and the swaps.
I do not agree with the view that negative value in swaps can be discounted.
Look at SREI - a great success story but the swap value had to be crystallized to achieve it.

But do recognize that the high gearing could do very well for LSR if there is a respectable pick up in commercial property.

[profitaker] 03/10/2013 07:13

Colonel

Well done with ERET ! I'm sure there'e another good 50p to come in the not too distant future, more in the long term.

Have you had a look at LSR ? UK prop company liquidating itself with a good discount to NAV.

[colonel a] 02/10/2013 15:28

At a 53% discount to their last NAV there have to be some serious issues.
I've got about 1/3 as much in these as I have in ERET, which reflects relative confidence.
But appreciate the sanity check, it is easy to get carried away when a sector is going well and assume the trend will carry all before it.

[profitaker] 02/10/2013 14:56

Colonel

The question is what is the true NAV of this one ? If AURE & AUMP go into administration what will be the recovery rate on those loans ? The Spanish property obviously has a value, but is it booked at fair value in the accounts ? Legal goings on with the property in India and what about the exchange rate ?

These trade on a thumping discount to NAV, so it's not all bad. Just not as good as it first looks, I suggest.

I might have another look at these in the future but will give it a miss for now. Good luck.

[colonel a] 02/10/2013 14:29

Thanks,
I'll look into the fees in more detail, I can live with risky investments but snouts in the trough puts me right off.

[profitaker] 02/10/2013 14:24

I'd be careful with this one.

Their loans to AURE & AUMP look dodgy. Total investment £ 14.7m representing 21.98% of their investment portfolio. Both companies struggling to extend banking facilities. Can't find out anything about their loan to Norway. 20.78% of their portfolio is invested in a Spanish shopping centre. Their property in India (7.4% of their portfolio) is involved in an "arbitration process" to protect the investment. Not sure how these valuations would stack up against their book value, but I'd certainly be worried about the true value of the above, which combined represent 50.16% of ARTL investments.

The only sound investments I could find was in Freehold Income Authorised Fund, which in turn is invested in ground rents. Safe as houses, but only yielding 5.2%. Cambourne business park looks good, but represents just 1.8% of their portfolio.

Interestingly ARTL pays an "Investment Management Fee" to a company called "Alpha Real Estate Capital LLP", as does, er, each of it's subsidaries. Bit of a gravy train going on here I think.

[colonel a] 02/10/2013 08:18

There are fewer and fewer property companies at a significant discount to NAV.
This one is not easy to figure out but I've bought some on the basis that property generally seems to have bottomed out and ARTL seem to have enough cash to profit.

[bisiboy] 05/9/2013 17:34

on board with these looks like some upside.

[ibarty] 24/2/2013 12:34

Quiet a defensive structure here, with prospect of 5% yield and with price at 40% discount to NAV. It will be interesting to see how the investment in AURM and AURE turns out. Not worthwhile converting, but AUMP and AURE would have difficulty repaying so ARTL should be in a good position to change terms