Anyone aware of any news behind the 7% rise and decent buying volume today? |
 Sky another propco that has to go for headline on rental collection rather than reality of cash actually in the bank but the detail is there. They say they've collected 92% of June qtr but in cash terms its actually 81% and likewise for Sept its 80% headline 75% in pound notes. June qtr doesn't look too bad compared to others but why is Sept not so good as if they've cut deals with tenants then it should roll over to future qtrs (even if the cash isn't in the bank which they say will be 12-18mths.
Whats quite illuminating is the schedule of sites that are impacted by CVA's/prepacks where the tenants are still in situ under licence and the amounts that are at risk or well actually forgone as they are unlikely to retain rents at these values but at least they are transparent.
Finally they've upped the dividend from 0.75 to 0.95 due to higher cash collection so they are to be applauded for that as others are just sitting on the fence. If they maintain that going forward thats c4.4% so certainly if it goes below 80 I might be tempted but this lot have been habitual at issuing new shares. |
CREI has always been ridiculously over-priced versus its peers; and may still be so.
An 8% discount and a 4%-5% yield (who knows!) suggests that the support line may well crack. It is already below the 50day SMA, so 80p beckons...
free stock charts from uk.advfn.com |
Interview with CREI posted on proactive investors
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Haven't given any rent away (yet) and expect to recover it in future qtrs. Pretty plain talking and worth 13mins of your time (or turn up the playback speed!!) |
So i see the Inv Mgt agreement has been renewed with current provider and the good news is the fee is reduced from 0.65% to 0.55% above £750m - am i missing something here but NAV at 31st Mar 20 was £426.7m so that ain't saving us a penny.
Another REIT being run for the benefit of the directors and investment mgr. |
The retail warehousing is b&m bargains and such like. These are generally national companies with more negotiation clout. If you want online logistics real estate you want to be looking at Bbox |
That's probably it.15% retail stores. If I remember some in Chester town centre.Not too shabby.And the rest in warehousing.I guess that's still needed for online. |
They differentiate between retail and warehouse retail - maybe the reason |
I was "verbally "informed 2 weeks ago,15% with a very upbeat view.You obviously know your stuff.As you can guess, from my nom de plume I'm more pharma BUT have very sizeable holding in CREI in my SIPP . |
Pharmaboy retail is 33% according to latest factsheet but not all dodgy tenants but concur they have a reasonable portfolio spread but tables are turned in favour of tenants. We saw behaviour of some of the bigger retailers (Boots/Superdrug/JD Sports) over March qtr and the fact that the govt has now extended moratorium on rental recovery to end Sept why pay any rent and cede advantage to your competitors will be an option for everybody but hopefully CREI have recognised this risk and been proactive. There lowered divi needs them to maintain c70% collection levels to be sustainable and thats paying just over 3% for ongoing capital risk. share price needs to be lower for me although i suspect industrials will become the 'must have' asset so will act as a counterbalance on NAV potentially so will be interested at 80p. |
Retail is only 15% of portfolio.They're incredibly well placed .Small properties , outside London. Can pay dividends from own cash |
I've now sold as can only see pain come Wednesday. Retail and offices are likely to be hit hardest. Retail by defaults and office space is likely to see vastly reduced demand in the future. All imo dyor |
Can't be long before they advise upon NAV, rental payment defaults and rent negotiation outcomes. |
Despite my comment yesterday they've put out a reasonable C19 update confirming 67% rent collected with another 5% "to be received shortly".
Further goes on to say " a number of tenants move from quarterly in advance to monthly in advance rent payments, or defer the March quarter's rent with a full recovery over the next 12 months. Some tenants have yet to agree a payment profile, but the Investment Manager remains in active discussion with over 40 tenants to agree payment plans for the balance of outstanding rent, which remains contractually due".
Will pay declared dividend 1.6625p per share on 29 May 2020 and says will pay another 1.5p over first half of 2021 after then looks like it will be based on whats coverable by rental receipts. This at least goes further than others have done and leaves an escape route of if things don't improve.
No immediate pressure on debt til Sept 22 but lowish LTV of 35% compared to 22% at last valuation.
As Sky says being priced at NAV is too bullish in this market potentially but if its still able to pay a divi it will retain its halo in this negligible interest world but when the next lurch down comes in the broader market maybe worth a punt. |
This lot have a halo above them - probably Mattioli Woods wealth mgrs still pushing them |
CREI never sold off as much as others; but have now rallied almost to their historic NAV level at c100p. Surely have to be sold at this level; though I suspect no-one holds in any event... |
nick - actually Mattioli holding reduced as a %age from 6.03% to 5.98% - passing the 6% threshold, hence the need for the RNS even though their holding remains unchanged! |
Mattioli Woods showed up again on increased holdings RNS and as they are also the fund managers i guess they are flogging it through there various investment/wealth management services. Yes they are selling at premia but every 1m requires £66.5k of divi payments so they need to buy assets with at least that yield just to stand still.
However, with naff rates available i guess its an easy sell to people who need an income stream but as the saying goes "Your capital is at risk" !! |
Indeed. Certainly one of the the most bizarre "valuation" aspects I can think of in the REIT sphere.
A 5.8% yield has its attractions, but when you couple it to zero capital growth (see 2yr chart above) and consider the growth we've seen from almost all their peers, why these institutions want to cough up a 9% premium remains a profound mystery.
Very pleased those institutions aren't managing my money! |
CREI have managed to issue 6M more shares over the last week at premia of around 9% |
1.6625p - the same as declared in Oct & Jul'19. Suggests the new full yr divi of 6.65p for a yield of 5.78% and a mere 10.5% PREMIUM to NAV/!?~#.
A good sell into today's strength. |
Skyships thanks for that link very informative and saves me having to wade through reports!! I see CREI has low Z score which whilst not cheap still puts it at second from the top so maybe with its recent share price decline its beginning to approach the active watchlist threshold |
CREI included in this useful piece of Citywire research. Shows CREI also have too high an exposure to retail: |
Looks as though some institution or other has finally woken up to the fact that CREI shares were/are standing at an unsupportable PREMIUM to NAV.
Thankfully I suspect no-one reading this thread will be affected by the diminishing Sp. |
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