The Company has acquired a 70,160 sq ft retail park in Nottingham consisting of four units occupied by Wickes, Matalan, Poundland and KFC, with nearby retailers including Tesco, Morrisons, Lidl and McDonald’s.
Raised comment on other boards |
Results were released last fri. As we knew, they were good. Commentary is worth a read:
[...] |
Bought in today. Pipe me aboard Sky. |
Good to see evidence of conservative valuation(s). Chart suggests downtrend resistance c. current level of 101.5p; but indicators pointing in the right direction so should break through in time, then back up to the 106p level:
free stock charts from uk.advfn.com |
Huge that is an impressive commitment puts most of their peers to shame with the limited or non existent director purchases we see there. |
Director buys 800K. That's quite the vote of confidence. |
Specto, re value/discount, CREI's average over the last 12mths was 3%, SREI, BREI and SLI are all currently on about their average for the period. I think there's more potential in CREI for a good discount shrinkage sooner than for the others. The shareholder base of CREI made up of mainly wealth managers, not big institutions, makes a return to a tighter discount more likely.
In the meantime, it offers a higher dividend, which is covered, and a portfolio which appears to still have growth embedded in it. |
Am I alone in finding the recent director buying slightly pathetic? These are the holdings afterwards:
Chris Ireland 50,345 0.01%
David Hunter 39,000 0.01%
Matthew Thorne 39,000 0.01%
Elizabeth McMeikan 20,400 0.00%
Hazel Adam 19,566 0.00%
2 not dissimilar from zero, 3 a barely registering 0.01%.
Amounts bought to add to tiny existing holdings to get to the figures above:
Chris Ireland 24,542 . 25k
Hazel Adam 19,566 . 20k
David Hunter 10,000 . 10k
Matthew Thorne 10,000 . 10k
Elizabeth McMeikan 10,000 . 10k
£10k of shares in CREI is not conviction.
"David Hunter, Chairman of the Custodian REIT, commented: "I thank my colleagues for the support they have shown the Company in making the purchases detailed below which closer align the Independent Directors' interests with the long-term interests of our shareholders..."
CREI needs to go some to match the value elsewhere in the sector - SREI, BREI, SLI etc - and can't see it's got there yet.
Citywire piece on it today: |
Update today from Edison |
Thanks for posting the presentation video Rambutan2, it encouraged me to add to my holding.
Potential total return this year could be; Discount reduction 10%, Yield 5.5% and NAV growth over the year of 5%. Gives a potential of around 20%.
Whatever it ends up being it's higher than the interest from my bank of 0.1% |
Garfield - totally agree. Personally would never buy a propco on a premium, even a single figure discount. In view of CREI's past valuation, I believe fair value here is back up to the recent high c106p. |
Good morning Skyship. Over the weekend viewed the longer February presentation as well as the May. Impressed by the approach and took two bites for first time in Custodian. Also looked at AEW presentation which I did not find so powerful and discouraged by small premium. |
I've only traded CREI twice - both times shorted. Those were in the days when CREI stood at a crazy premium and spooned out new shares at an NAV premium to gullible institutions.
But now, after viewing that presentation (thnx RAM), I've decided they look reasonable value for a very well-managed propco. Annoyingly the Market closed just ahead of me on Friday, so had to pay a slightly higher price this morning - 99.44p. |
Quarterly update webinar from wed. Fairly upbeat and div target of 5.5p for next 12mths. |
Always welcome:
12 May 2022
Directors' purchase of ordinary shares
Custodian REIT (LSE: CREI), the UK property investment company focused on small lot-sizes, announces the purchase of ordinary shares in the Company by all of its Independent Non-Executive Directors.
David Hunter, Chairman of the Custodian REIT, commented: "I thank my colleagues for the support they have shown the Company in making the purchases detailed below which closer align the Independent Directors' interests with the long-term interests of our shareholders, without impacting their independence. These purchases reflect the Directors' view that the Company's current share price does not sufficiently reflect the true value of its net assets." |
I bought a few today. I like the way they run the portfolio. Div is covered with room for growth. Expect the discount to tighten back to single figs once current jitters settle. |
Huge indeed v.good LTV although they do have a modest refinancing due later in the year which won't be had for 1.75% above SONIA so interest expense will start to creep up. Mind you if they complete on the voids they say are under offer that will add nicely to NRI to more than cover. Good to see quite a few retail lets on reasonable terms although given the high level of transparency they give I note there is no mention of rent free periods though.
This one use to trade on a slight premia and was constantly issuing new shares on a weekly basis so we have a way to go to get back to that era. |
Agree good quarterly update. I think they are well positioned going forwards. LTV only 19%. Good portfolio mix etc. Also some interesting comments on the market in general. |
NAV at 31st March 2022 is 120p, a yield of 5.5% at 100p share price and trading at a discount of 17%. I have topped up on this news. |
Another strong quarterly update from BREI this morning. NAV +5.8% for the quarter which implies CREI's next NAV could be 120p+. Let's see. They tend to update in early May. |
Discount here back up to 11% (NAV 113.7p) and yield 5.45%
LTV approx 20%. Target LTV is 25%.
I see AEWU reported Q1 figures last week. Their industrial assets were +4.6% and retail warehouses +4%
At year end 2021 CREI's portfolio was
Industrial 47%
Retail warehouse 19%
Office 14%
High street retail 8%
Other 12% (drive-through restaurants, car showrooms, trade counters, gymnasiums, restaurants and leisure units)
So I think CREI's Q1 NAV may be over 117p now which would put it on a 13.5% discount (compared to no discount at all before the pandemic)
Still a smaller discount than say BREI and SLI which have fairly similar portfolio weightings but the yield here is higher (30% higher than BREI) |
Really interesting presentation I thought:
On Wednesday, 23rd February 2022, the portfolio management team of Custodian REIT, Richard Shepherd-Cross & Ed Moore, provided an update on the strategy, portfolio, and performance as well as providing their outlook for UK commercial property sector... |
Laura Mattioli been busy again
250,000 @ 101 pence |
chunky buy by a person closely associated with director - Laura Mattioli, daughter of Ian Mattioli, a NED
200,000 @ 100.6 pence |
nick - those placings were possible because of the appetite of buyers. I suspect that appetite no longer there to the same extent.
Placings were conducted at a premium to NAV, so NAV accretive; whereas CREI now on a 6% discount. |
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