Balanced Commercial Prop... Share Discussion Threads

[spectoacc] 11/11/2021 08:20

The random buyback returns. All good for our NAV, nicking them below £1, but no consistency in when they do it.

[nerja] 05/11/2021 13:46

Given me a chance to top up, ex div next week so good chance this is mms trying to get stock

[spectoacc] 05/11/2021 13:09

Lol fair point - let's see what it closes at! The buyback seems very variable in operation - last 3 were 100.16p on 22/10, 102.72p on 29/10, and 102.73p on 03/11. Nothing inbetween.

[nerja] 05/11/2021 11:00

Wonder if £1 will now be the floor, rather than the ceiling.

Err nope!

[spectoacc] 01/11/2021 09:27

"On 29 October 2021 the Company purchased 2,000,000 Ordinary Shares at a price of 102.72 pence per share. These shares will be held in treasury."


Highest by some distance (just over a quid previous highest I've seen), but justified by the +5p reported NAV rise. Still a decent discount to 130p NAV, still highly accretive.

Wonder if £1 will now be the floor, rather than the ceiling.

[spectoacc] 29/10/2021 07:03

And a rising NAV at that. In the meantime, 0.35p a month, rising to 0.375p. Which depending how many you have, is not to be sniffed at :)

[boozey] 28/10/2021 20:40

A slow but steady long overdue re-rating to close that gap on NAV

[hindsight] 26/10/2021 09:29

For me its about 2 years time here and SHB. If T/O rents mean near 100% occupancy so rates, service charges covered and then some rent for loan payments so no shareholder dillution

[spectoacc] 26/10/2021 09:18

Fair point - don't know - but clearly no shortage of tenants/willing takers, so would hope the yields aren't too low.

Could mark St Chris's down to zero, & still not get NAV down to current s/p.

[nickrl] 26/10/2021 09:04

Specto are they resorting to t/o rents to keep occupancy up though at St Chris isn't revealed but we know SHB have resorted to that. Im not adverse to them having risk sharing as I feel its an equitable way forward but levels of disclosure are limited currently although I guess valuerers are given more insight.

[spectoacc] 26/10/2021 07:05

No divi to pay on the shares bought back remember.

St Chris's held up surprisingly well without foreign tourists - occupancy in particular has been amazing, in the circumstances. But yes, would be nice if Cushman & Wakefield stopped marking it down!

Another point is when does industrial turn - not yet it seems, but yield compression already gone on far longer than expected.

[nickrl] 25/10/2021 20:32

International tourism isn't expected to recover until 2025 with Asian flows particularly depressed according to IATA may hold back St C for a few years more but probably close to bottom on valuation. They have made some good sales but let income go with it and are yet to replace it so divi upside limited imv but with plenty of firepower and with the market still hot crack on with buybacks.

[spectoacc] 25/10/2021 12:01

I can't knock BREI, no.2 on my list, & last qtrly NAV was outstanding.

And fair point re Covid risk to London, tho there's surely more of that behind us than in front (eg

BCPT still edges it for me, with large-scale buybacks at huge NAV discount too.

(@EI - must admit I've not been following CAPC).

[hugepants] 25/10/2021 09:49

Although St Chris is outperforming the west end in general apparently the hospitality sector is lagging well behind in London than rest of the UK due to lack of commuters and foreign tourists. So it may be next year before St Christopher footfall returns to pre-pandemic levels. Still think this reit compares unfavourably with say BREI and it looks vulnerable to a winter resurgence of the virus.

[essentialinvestor] 22/10/2021 17:22

CapCo interesting, anyone?.

[spectoacc] 22/10/2021 17:16

Very - just need St Chris's to turn, which it will eventually. It's performing way better than the valuer suggests (subject to Covid of course).

Am sure 100p is buy-back related - tho they ought really to up it to 105p :)

[vacendak] 22/10/2021 17:13

But... but.. but... 100p!
Hope is all about milestones. :)

More seriously, the latest update was encouraging indeed.

[spectoacc] 22/10/2021 17:10

Have faith! They pay us every month just to sit in, and are (currently) doing 5p/qtr just in NAV, with more to come IMO.

Can see little better value on the market atm. Hard assets at a time of inflation.

[vacendak] 22/10/2021 17:00

And we managed to finish the week below 100p. :(

[vacendak] 21/10/2021 17:40

I have made more than 10% on the little bundle I bought back in July. :)
Not enough to recoup the losses from "back in the days of 150p" but a morale boost nonetheless.

[boozey] 21/10/2021 16:35

Big discount to NAV offers good risk reward here. A must have for the portfolio.

[catch007] 21/10/2021 16:01

Strong update today, very encouraging to see recent activity getting positive results. Dividend increase may help further share price progression I hope as there is confidence with 7% uplift.

[spectoacc] 21/10/2021 07:19

NAV 130p. Another quarter, another 5p rise.

Divi nudged up from next month. Rent collection from start of pandemic impressive, void rate even more so.

St Christopher's:

"Since September, visitor levels to the estate have been closer to pre-pandemic levels, following the gradual return of office workers and an increase in leisure travel."

[cwa1] 15/10/2021 15:43

Damn. Sorry :-(

[vacendak] 15/10/2021 15:34

You jinxed it! :)