CT Property Share Discussion Threads

[catch007] 12/4/2022 11:15

A move north in dividend is needed. I would like to see 1.25p per quarter reinstated now however I would take an uplift to 1.1p as positive progression

[spectoacc] 11/4/2022 16:47

Ditto, my largest holding. Value will out eventually.

[jbarcroftr] 11/4/2022 16:38

My view is that brei is completely mispriced
20% plus discount
But 50% of the assets are in industrial/ logistic assets which the hottest sector,so really the market applying a 40% discount to the remaining assets

I am quite happy to keep collecting the dividends and await a rerate

[flyer61] 11/4/2022 16:08

Thanks Nexusltd...VIPs 3% is just that a 3% investment in the company but not a precursor to it making a bid. Maybe it thinks someone might come along and take a pop. After all it should have good contacts in the market. Sadly I don't think a bid is in the offing from anyone.

Agree with your NAV assessment. The div needs to go to 1.1 per quarter at this next update. If it doesn't increase then as you say it is off the pace. Better to sell up the assets and return our money.

I like the location and the high industrial content but need a higher div to stay in....

[nexusltd] 11/4/2022 15:43

@Flyer61 I still have a small holding of 30/-. Looking at the CBRE data I posted on CP+ thread, I think that we can reasonably expect a Q1 NAV uplift of 5% to 127p, based on Industrial 53%+6.6%, Retail WH 18%+7.5%, Office 22%+0.9%.

As to why it continues to trade @ >20% discount to NAV I'm not sure. I can only think 1) Micro cap, 2) EPRA net Initial yield of 4.7% is c. 0.6% less than say that of SLI, or SREI with a corresponding reduction in one of my metrics of Free Cash flow / share (p) as a % of NAV.

As for a takeover at close to NAV; I think it is a long shot as greed/fear ratio is unfavorable & we are moving into summer; though as nickrl pointed out VIP has built a > 3% position.

What do you think?

[flyer61] 11/4/2022 12:48

Does anybody have any further thoughts on BREI before the next update??

[nickrl] 01/4/2022 11:16

VIP appeared on the register with just over 3%.

[bull19] 31/3/2022 20:35

...from hmrc myself...

[bull19] 31/3/2022 20:34

Thanks flyer. I thought I might have to claim it back from myself but if my broker does that and it appears in my account, that's not so bad

[flyer61] 31/3/2022 20:17

Bull19, the tax element will appear in your ISA in a month or two.

As has been mentioned it is beyond me as to why some are able to pay gross and some do it in two stages.

[bull19] 31/3/2022 19:36

Thanks for the reply colonel. I'm with fidelity. I hold these in an isa so is it right that I have been taxed? I've never been taxed on dividends from equities. I'm new to REITs so maybe I have missed something in terms of tax liabilities?

[colonel a] 31/3/2022 18:59

Barclays ?
Looks like tax has been withheld and you won't see it until it is claimed back from HMRC.
Why some providers manage to pay gross and others not escapes me.

[bull19] 31/3/2022 18:27

I received less than expected dividend today. I was expecting 1p per share but my payment only works out about 0.797p per share. I also got less than expected for SREI and LXI this month. I've never had this with traditional equities so it seems a strange coincidence that it has happened with these three REITs. Am I missing something?!

[catch007] 31/3/2022 13:13

Divi is still only 80% of pre pandemic level. Given the highly encouraging update today almost certain imho that we will see upward divi progression back to base in the near term.

[nickrl] 31/3/2022 11:50

Inglis of RGL is calling top of the Industrials and say regional offices are the best play - he would of course but demonstrates that each company has its own perspective.

Anyhow at least we won't have anymore cringe worthy Lowe videos. Also chairman bailing out and a NED although I wonder what real value any BoDs bring to these small companies. So I wonder if a merger with BCPT a possibility here?

Anyhow back to results and divi is covered at the cash level although significant release of previous bad debt provisions flatters the cash this half. Costs for vacant properties going up and thats another 5% on the divi if they can let them. With the acquisitions last year ought to see a modest uptick in divi next qtr.

Debt up by 10m which covers the acquisitions but extra interest covered at least 3 fold from rental income makes wonder why these companies aren't filling there boots more.

So when we get Q1 NAV update towards end of April my forecast is we will put on another 3-4p so 124-125 compared to todays price suggest discount isn't closing yet.

[spin doctor] 31/3/2022 09:57

OK. Taken somemore for the medium term. A buyback program looks to me to be highly likely at some (fairly near term) point, particularly given the possible management hiatus.

[pdt] 31/3/2022 09:29

So if Industrials and Retail Warehouses are continuing to see capital growth and Offices and Retail broadly flat, why is there a discount to NAV of some 25%? Even the yield of 4%, good occupancy and 97% rent collection are supportive.

[spectoacc] 31/3/2022 09:00

Going back to finish his A-Levels I believe.

[income investor] 31/3/2022 08:57

Disappointing that lead manager Peter Lowe is leaving the company and no word yet on his replacement. Let's hope they find a good successor

[spectoacc] 31/3/2022 08:22

Sector comments interesting too - 2nd para for someone to copy & paste to EPIC BB, & final para what we already know re offices:


"2021 was record breaking for the Industrial, logistics and distribution warehousing assets (Industrials') with leasing activity at the highest level ever reported, pushing the national vacancy rate to the lowest ever level. The strength of the occupational market and the current imbalance between supply and demand is driving positive rental growth, attracting a significant weight of money being directed towards the sector.

Retail, despite the ongoing shift to online, was perhaps surprisingly the second-best performing sector over the period, posting an 8.3 per cent total return over the six months. This was driven by the Retail Warehouse segment which proved the more resilient over the course of the pandemic in terms of footfall, rent collection and pricing.

Office letting activity has picked up, albeit from a low base, and with continued near term uncertainty around total aggregate demand. There is however a clear focus on higher quality space in central locations, as companies look to welcome employees back to a more structured, hybrid model of working. Leasing activity is being supported by job growth and pent-up demand as some corporates reactivate their office plans shelved over the past two years."

[spectoacc] 31/3/2022 07:22

A good read this morning. This stuck out:


"A narrowing of the discount remains a key focus for the Board and Management, as we do not believe the share price movement fully reflects the strong underlying performance and quality of the portfolio. Share buybacks remain under consideration, however, to date, cash resources have been committed to capital projects and acquisitions which have generated meaningful NAV enhancing returns."

[spectoacc] 30/3/2022 11:05

You see bid & counter-bid at MCKS, & wonder how BREI is below a pound. 121p last NAV, with another quarter having almost passed.

Very much talking book.

[badtime] 22/3/2022 16:54

Maybe it's their view that better opportunities lay ahead

[spectoacc] 22/3/2022 15:13

Fair point, only mentioned those I follow - AIRE almost back at highs (dislike it), PCTN some way off (not as good a discount), EPIC well below but for good reason. Thought they'd have had something ready to go for the office proceeds, considering how many times they walked down the price of the final one.

[alan pt] 22/3/2022 15:11

EPIC also a long way down from recent highs, but hard to see that changing until there's some positive news on reinvestment of office proceeds