CT Property Share Discussion Threads

[skyship] 25/1/2022 07:32

LTV presumably a tad lower due to valuation increases since Jun'21

[skyship] 25/1/2022 07:31

HP - could you possibly update the Header please:

At 90.8p, 25% discount to NAV (NAV 121p)

Yield 4.41% on 4p dividend

24.5% LTV (Jun'21)

The portfolio is well diversified

53% industrial
23% Office
6% Retail (standard)
18% Retail warehouse

[spectoacc] 25/1/2022 07:00

I think rent increases and capital spend will improve the divi over time, but perhaps with rises equal to inflation rather than the big leaps post-Covid. I'd rather they spent money on the portfolio than over-paid the divi (as eg BCPT did for years).

Hope at some point they'll make some selective disposals too - Industrials increase underpinned by solid demand, but it'll have to peak eventually, it's been nuts.

[hugepants] 24/1/2022 23:00

The discount to NAV is now back up to 25% which is a good deal higher than the peer group. Not sure how much scope there is to increase the dividend. Voids are down to 3.5% now. Filling these would help. I assume LTV is around 25% still or maybe less. With the NAV growing so much the last 2 quarters it should be going down. Maybe increasing this to 30%+ they'd be able to increase the dividend by a meaningful amount.

[alan pt] 24/1/2022 21:34

Yeah, I'm OK with a small drop, it was more a "feeling generally bear'ish" buy than a "damn, crash is here now". But kudos on the SUK2 buy, that was nice timing!

Thought about BHMG, but I choke on the charges and managers attitude...

[skyship] 24/1/2022 20:56

CGT still falling though. I was lucky enough to buy SUK2 last week - now up 7% - but sadly only bought a 3.3% allocation. DOH!

[alan pt] 24/1/2022 19:21

Could still drop in a major sell-off, but the div shouldn't drop this time, I would have thought, so definitely a better position

I also happened to put 5% into CGT last week. Could claim brilliant insight on the timing, but just luck really :-)

[chucko1] 24/1/2022 18:04

This day was always on the cards. Even when the NASDAQ fell 75% after Jan 2000, many vanilla stocks did just fine, so unsurprising to see a few remain positive.

Even if there is further panic, I do not see big sell-offs in BREI, SREI etc. etc. Their still large discount is a decent first layer of protection, as well as the earnings being in the here and now, rather than many years hence.

[alan pt] 24/1/2022 16:29

All my REIT's and direct infrastructure holding up surprisingly well today, doing their job well!

[spectoacc] 24/1/2022 15:49

He's rolling into Kiev, you know he is. Madman, can completely ignore anything he, Lavrov, or Xi for that matter promises. Worse - can assume the opposite.

"I hold in my hands a piece of paper".

But - at what point to you buy back in. Wouldn't touch any of your PE with a long stick ;) Anything with unlisted co's in its NAV is going to get slaughtered.

Amazing looking at just the UK tankers - eg WISE, THG, DARK, BCG, many more - and seeing how they're not remotely attractive even after huge (humungous in THG's case) falls. Halved or more, but from an epic bubble.

Rotate rotate rotate - VOD, BATS, IMB all blue when FTSE was -200 earlier.

But still doesn't answer when to buy.

Will keep picking up things like BREI that I'd hold no matter what happens. And watching list of things to buy on weakness - always fancied (but never held) one of the biotech ITs like IBT (off 8.8% today). But bet I don't buy it.

[skyship] 24/1/2022 15:42

Sold mine this morning at 94.95p. Normally would buy back, but, having sold those & trimmed a couple of other REITs, I'm now at 40% CASH & frankly too concerned about madman Putin's machinations to buy back into anything!

[spectoacc] 24/1/2022 15:29

Bought more, just a few. Unfortunate market for good news to come out, but doesn't change the facts.

Keeping something by for when the tanks roll into Ukraine.

[nexusltd] 24/1/2022 11:23

BREI delivered excellent results this morning. FCF dividend cover as at 30/06/21 was 96%, I think that cover is now sufficient to expect a payout increase. Even with today's share price hike the discount to NAV is 21%. As stated, Office is the weakness at the moment, quality in this sector is increasingly important, else risk of un-leasable assets with high refurb costs. RGL's report will be an interesting read.

[playful] 24/1/2022 09:25

Little old BREI on todays leader board who'd have thought.

[spectoacc] 24/1/2022 08:38

In terms of read-across:


"....Polarisation favouring prime office assets, widening the gap to the more illiquid secondary end of the market. Against this backdrop, the Company's Office assets, which make up 23 per cent of the portfolio, experienced marginal capital decline of 1.4 per cent. The Rest of UK offices experienced capital falls of 5.3 per cent, however, the prime Berkeley Street, London and refurbished County House, Chelmsford holdings account for broadly 50 per cent of the office portfolio. With a 70 per cent weighting towards the core South East, diversification within the portfolio should insulate the Company from some of this pressure as the UK's return to office' continues to evolve."


So effectively - "Prime offices OK, London not too bad, but -5.3% in a qtr on regional offices".

Personally I think that'll continue, if not accelerate (as long-standing deals come up for renewal).

And BREI still did 10.4% over the quarter despite that offices drag.

[spin doctor] 24/1/2022 08:23

Extraordinary.Now for the read across.

[spectoacc] 24/1/2022 08:12

Didn't expect acceleration - 9.2% to 30 Sept, 10.4% to 31st Dec.

121p NAV, 99.2% rent collection last qtr despite Omicron.

I'd take that sort of NAV growth over 12 months, not 3.

[skyship] 24/1/2022 07:57

Exceeds even my generally optimistic expectations!

[spectoacc] 24/1/2022 07:38

Once again, BREI is the absolute stand-out. Industrial done 12.8% over the qtr. Only offices (as predicted) the drag, with a slight fall.

NAV total return of 10.4% in 3 months - the market can't keep ignoring this forever.

Edit - to put it in perspective, NAV been rising c.3% a month.

[killing_time] 24/1/2022 07:12

Great results, Big rise in NAV.

[spectoacc] 20/1/2022 08:02

AEWU is where I eventually expect to see most of the REITs - constantly appearing to trade at a small premium, whilst actually the NAV is growing to the s/p.

Onwards & upwards (subject to office sector drag).

[skyship] 20/1/2022 07:45

This from AEWU's update this morning:

# 3.49% like-for-like valuation increase for the quarter (30 September 2021 quarter: 3.11%), driven byretail warehousing (like-for-like increase of 6.73%) and industrial (like-for-like increase of 5.16%) sectors.

[spectoacc] 18/1/2022 14:11

Lol far point.

Caviar rather than brie if this value rotation continues.

But maybe not Russian caviar.

[hugepants] 18/1/2022 14:02

"BRIE & PCTN would go very well together"

Brie is a cheese

[skyship] 17/1/2022 16:09

Link in my 430 above didn't work.....does now!