CT Property Share Discussion Threads

[spectoacc] 14/9/2020 16:08

Just not sure, so much "cheap" around in the sector. BREI not flush with cash to spend like some - interesting Sunday Times piece yesterday about property Unit Trusts now slowly reopening, and the prospect of some having to rapidly re-gate again. If so, might finally be some cheap stock.

Also not sure if the impending removal of "Material Uncertainty" means valuers will mark down. Easy to accept recent transactions as evidence of values on eg industrial, retail parks etc, but not sure that works with eg High St. Can see them taking the red pen to some values now they're not covered by the clause.

May not greatly affect BREI but they do have little bits of everything, inc West End (offices & retail). Next NAV calc this month, released sometime in October.

[hindsight] 14/9/2020 13:19

They have certainly fallen fast, tried sell mine pre divi for 68p and only some filled

[essentialinvestor] 11/9/2020 18:10

Had a few before the close.

[hindsight] 28/8/2020 09:42

These the best perfomer reit I hold, not that thats is hard to do, most down. Not sure why risen so much from 52p, only thing noticed is the threads with less posts are better

[essentialinvestor] 28/7/2020 15:20

HP, yes, I was referring to heavy SE exposure.

That may be a positive or negative, depending on how you view the regional outlooks.

[hugepants] 28/7/2020 13:18

They have 11.5% central London exposure.

The portfolio mix is decent.

42.6% industrial
29.4% offices
16.9% retail warehouses
11.1% high street retail

There's a pretty good overview of this reit here (dated June 2020)

[essentialinvestor] 28/7/2020 00:18

This trust has pretty hefty exposure to the SE and there is London exposure
on top of that. Perhaps worth watching though.

[hugepants] 24/7/2020 15:46

Someone paid 58.6p for 20K. Current buy price is 55p. I think they need to get a new broker.

[essentialinvestor] 21/7/2020 14:54

Towards 50 pence discounts a lot imv.

[epistrophy] 16/7/2020 19:26

Impressive 91% rent collection for Q2. They seem to have the right kind of tenants.

[nickrl] 16/7/2020 11:14

BREI out with June NAV today which is pretty quick. Rental collection is 90.9 for Q2 but only 66% for Q3 to date. However, they've only billed c75% of contracted rent so far but do say they will bill roughly same as Q2 by end of qtr to reflect concessions/monthly payments so on a comparable basis its only c50% so far.
Not giving much away on dividends other than they will be kept under review but given it was uncovered i suggest lower amount is now the new baseline giving c4.1% yield today. Needs to be above 5% for me especially as NAVs of retail assets being bashed down every qtr still.

[hugepants] 18/6/2020 15:54

Topped up at these levels - bit surprised given the portfolio and low LTV its fallen back again.

[nickrl] 03/6/2020 08:57

Dividend culled by 50% but at least there still paying.

Updated rent collection at 86.7% but expecting June to be more challenging as rationale for cut.

Having not previously covered dividend this is a good move

www.londonstockexchange.com/news-article/BREI/interim-dividend-announcement/14562994

[flyfisher] 11/5/2020 18:26

The price fall here looks a little excessive given that they are only 11% exposed to high street retail.
Am i missing something?

[hugepants] 05/5/2020 16:06

too cheap surely

[pete_bane] 05/5/2020 10:33

Disturbing to think that wannabe SpectoAccs are running amok in the USA. I know how that shop assistant in the Leeds supermarket assailed by Speccy feels.

[spectoacc] 05/5/2020 09:27

RGL's office rent recovery impressive this morning.

The worry with BREI the retail park/two restaurants & supply chain/High St/impending recession of doom. But surely much of that in the price already? Last NAV c.99p, going lower, but a fair bit of selling around 46p.

Spoilt for choice amongst the REITS atm but do quite like BREI again down here.


"Portfolio Composition

The Company benefits from a defensive, balanced asset base allocated 42.6 per cent Industrial & Logistics, 29.4 per cent Offices, 16.9 per cent Retail Warehousing and 11.1 per cent High Street Retail. The geographical exposure to the wider South East region is 77 per cent across all sectors. The portfolio comprises 37 assets, and 122 tenants with the largest tenant representing 7.5 per cent of the annual income. The vacancy rate by rental value is sub 3 per cent and the average weighted unexpired lease term is in excess of 6 years."

[colonel a] 20/4/2020 10:15

Nobody wants to pay megabucks for office space but not all of the pressures going forward will reduce demand for office space.
In particular there will be considerable resistance going forward to the "number of desks = maximum allowed by fire regulations" maxim.
I suspect that there will be considerable pressure to upgrade office air con systems too.
Making hot desking comply with HSE expectations won't necessarily require more space but potentially another growth area.

[nickrl] 20/4/2020 09:54

Well they did deliver updated NAV and reported 69% collection say monthlies will improve overall amount but don't declare to what. Given 30% retail mix on a par with others.

NAV's from Cushman have London insulated from the rest of the country which i suggest will come back to haunt them. London is highly exposed in the short term to medium term from tourism collapse and then how many organisations will want to pay mega bucks for office space.

There statement " We therefore continue to expect to see significant disruption to revenues over the near term, including the next quarter’s rent collection, even when the timetable for relaxation of lockdown measures becomes clearer" tells you where they say Q3 going.

As ive said previously they aren't in bad shape with low LTV and boad mix of assets but there a small player so will we see a few mergers down this end of the mkt capitailsation to spread out the 'expensive' inv mgt costs.

[spectoacc] 11/4/2020 13:53

Ha am glad you posted @nickrl, had taken it off my watchlist and now I've seen the price chart, I feel a lot better than on the 30th! I can't say where BREI is heading, but that spike was ridiculous..

Edit - I'm sure they'll be similar to those who have RNS'd already, and have collected a lot more at the quarter end than I thought 11 days ago.

[nickrl] 11/4/2020 11:46

BREI made some reference to Covid in the interim results RNS of 26/3 but too early to say where they were on rent. Historical they've paid out uncovered dividend but they do have lowish LTV of 24% and 5 years to any refinancing. They usually put out qtrly NAV so lets see if later this month we get an insight into what rent they've taken.

[spectoacc] 30/3/2020 12:06

As someone who sold out lower, I find this latest rise completely bizarre. Can largely wipe out the Retail, Retail warehouse, office, and much of the industrial income atm. So what's left?

Or more to the point - why should BREI be on a tear, and not the many other better positioned, cheaper Trusts.

[robizm] 16/3/2020 20:13

Discount just got a lot better

[hugepants] 06/3/2020 15:15

Well by my calcs at 73.8p to buy the discount to NAV is now 28% and yield 6.75%. LTV approx 27%

Also the Jan update shows the portfolio has changed slightly. Its now;

Industrial 42%
Offices 28.6%
Retail warehouse 17.7%
Retail traditional 11.7%

So total retail reduced to under 30% (and they specifically state no investment in shopping centres)