CT Property Share Discussion Threads

[skyship] 23/7/2021 14:33

Sent BREI an email today:

I am a smallish shareholder with just XX,000 shares in my SIPP & personal a/c.

Three things:

# It seems to me that you are rather late with the July Update - 16th last year. Will it be out soon - Monday perhaps ?

# Why did you not do as other REITs did & instigate buybacks when the shares dropped to absurd discount levels. Even your sister company BCPT did so...

# Why does your website contain an appallingly luvvie video of the fund manager and his previous life rather than a video of our properties. One of the worst waste of money ego trips I've ever had to endure. Please bin it!!!!!!

[alan pt] 21/7/2021 19:32

Not much to worry about in the short term - 46% industrial and office and retail warehouse have been good for collections in previous lockdowns, so really only the 8% standard retail to watch out for

[apollocreed1] 21/7/2021 18:19

That sell yesterday might be me. Was only £1.9k. I'm thinking if we go back into lockdown, BREI has too much exposure to office and retail.

[hindsight] 20/7/2021 17:47

Seller appeared at 72.2 so added some. Hopefully SREI nav rise reads across

[skyship] 18/7/2021 16:12

They certainly should have done so; but too late now perhaps.

[horseyphil] 18/7/2021 14:39

BCPT is buying back shares. Anyone think that BREI should/will do the same?

[hindsight] 18/7/2021 14:27

No turkeys dont but if an activist turns up, they wont find it hard to get the 51% vote, like happened in the IT sector. Large saving on listing fees, auditors, directors (over time, may have to let all the directors stay for a bit), better loan negotiation, more liquidity making tighter discount, lower less single asset risk, etc, etc

[brucie5] 18/7/2021 14:13

Thanks Skyship, I get my figures from STOCKO, which no doubt uses trailing data.

[skyship] 18/7/2021 13:44

Consolidation would be turkeys voting for Christmas as far as the directors are concerned. Also a bid requires a major document and major expense.

The only one I could see receiving a bid is CLI. A Private Equity bid, first taking out the family stake, is quite a likely outcome IMO.

[nickrl] 18/7/2021 12:20

Can't see much scope to lift the dividend more than another 10% if they want to keep it covered at the cash level (which they should having previously not done so). Its certainly sustainable at current level given rental growth is stilted in most sectors. I also like the fact they've removed the performance fee which gobbled up alot of cash previously.

My guestimate is NAV will be more or less unchanged with the portfolio mix exhibiting pluses and minuses unless retail has turned the corner with valuers but lets see what trading update brings.

Still surprised we've seen no consolidation across our REIT group just a few buyouts.

[skyship] 18/7/2021 09:44

Trading Update & NAV to 30th June was announced on 16th July last year - so perhaps we will see an RNS next week...

NAV back above 100p would be nice.

[skyship] 18/7/2021 09:09

Brucie - firstly the portfolio allocation is:

Office - 29%; Industrial - 46%; Retail - 8%; Ret. W'hse - 16%

So, a reasonably attractive allocation.

The LTV is an acceptable 25.3%; the Debt Cost 3.1% & the WAULT 5.9yrs.

As to the two most important factors. At 76p the discount is 23.3% (relatively high these days); and the yield on a 3.4p pay-out is 4.47%; but on the more likely 3.75p the yield rises to 4.93%.

They were recently anomalously cheap when down around 70p; but have predictably rallied well since, touching 77p last Monday.

IMO they are still attractively priced.

Incidentally, where did you get that 3.15% yield figure? Plainly incorrect or perhaps not updated.

[brucie5] 17/7/2021 12:02

Advice needed, as happy holder of both AEWU and RGL, both of which have done well, sport high, sustained dividends, and seem so far resistant to recent market falls. What benefit in adding BREI to the folio? I understand its a play on industrial warehousing as opposed to offices, but the divi is a fairly paltry 3.15% and can be easily by any number of equity value plays . Are you seeing further capital gain, if so on what basis?

Thanks. B5.

[spectoacc] 12/7/2021 16:36

Nice close. Still amongst the cheapest IMO, particularly considering dominant sector.

[skyship] 08/7/2021 16:04

Just random - they were anomalously cheap; and that situation now rectifying...

[chucko1] 08/7/2021 13:59

Any thoughts as to the driver(s) behind this? Or just random, as we often see in many others.

[skyship] 08/7/2021 13:38

Took a little time, but now going well - 75.6p-77.0p...

[gary1966] 07/7/2021 10:47

IG have caught up today and deducted the 20% tax.:-(

[spectoacc] 06/7/2021 06:49

Not come across that before, thanks @1tx.

[1tx] 05/7/2021 20:21

gary1966 you may have been paid the gross income on BREI by your broker even though you hold the shares outside ISA because the company is incorporated in Guernsey and it has been treated has a foreign share,which for tax purposes Channel Islands shares are classed.Foreign divis outside tax wrappers are normally required to be declared on tax returns & are taxed at appropriate tax rate you are paying if allowances etc are exceeded.

[spectoacc] 02/7/2021 16:38

Decent volume close, 42.7k at 75p.

[skyship] 02/7/2021 15:32

Need some volume to push on higher...

[spectoacc] 02/7/2021 15:08

193k shares at 74.4p yesterday seems to have done the good work - bearing in mind it opened 70.6/73.

Industrial weighting implies a rising NAV again IMO, so the discount likely wider.

[skyship] 02/7/2021 14:07

As I said earlier- 3.75p looks readily possible; but 4p may be going a bit! Still, would love to be proved over-conservative on that.

At the improved 74p we're still yielding 5.07% on that prospective 3.75p. Discount still 25.3%.

[horseyphil] 02/7/2021 09:45

Much prefer this to BCPT. Done a decent job reducing the high street retail exposure and now has a well-diversified portfolio, and only modestly geared.

Switched out of RGL and added to BREI when the share price gap between the two reached 20p. Again, I much prefer BREI's portfolio to RGL.

Once the redevelopments at Chelmsford and Luton (Lidl) generate full rent, hoping for a fully-covered divvy of close to 4p, and that should support a share price of at least 80p.