Custodian Property Incom... Share Discussion Threads

[riverman77] 20/1/2024 10:35

On my very initial scan, CREI reminds me a bit of AEWU - smaller regional properties typically offering a higher yield. Also seems to be largely focused on industrials and retail parks, with only about 15% in offices, so they appear to be in the right sectors.

[pharmaboy3] 20/1/2024 09:47

I am very interested in your thoughts, riverman

[riverman77] 20/1/2024 09:06

Never really looked at CREI before as always on tight discount but could be interesting at these levels. People too focused on the wide discount of API, but it is actually a decent portfolio and no particular reason it should trade on a different discount to CREI (other than that perhaps concerns over the management, who of course will be replaced once the deal goes through). Ultimately CREI will be getting a portfolio of properties at a good discount, while also increasing their scale which should lead to an improved share price rating. Intend to take a closer look at the CREI portfolio over the weekend.

[nickrl] 19/1/2024 20:33

@pharmaboy useful link and saves fully digesting the offer document. They have mgt charge savings of 1m pa and they are waiving additional charges on API portfolio for 9mths worth a one off 1m. They clearly want rid of the expensive API RCF and say that both companies have disposals lined up ready to go to eliminate part of it.

[pharmaboy3] 19/1/2024 18:56

CEO of CREI.Explaining logicHTTps://vimeo.com/904190906/d9d3c5c70f?share=copy

[ammons] 19/1/2024 17:19

I couldnt buy these either thru II late this afternoon. Too late to fone them after multiple on line attempts. Very annoying.

[nickrl] 19/1/2024 16:01

Ive recycled my EPIC payout into here sub 70p was too tempting. Mind you it was a palaver ii didn't have the KID uploaded so wont let you trade it online but its wasn't obvious that was issue till i called them and after three abortive attempts the planets were aligned and despite the delay actually ended up with 0.6p improvement!!

[hugepants] 19/1/2024 14:52

A bit of a disaster for CREI shareholders so far but yield is 7.9% at 69p by my calcs. Good value whatever happens?

[nickrl] 19/1/2024 13:42

@spooky mkt seems to believe its a totally naff deal and have bashed CREI down to atl. Its not the best deal for CREI i would have gone to PCTN myself but API BoDs clearly feel the time is ripe to clear out.

[spooky] 19/1/2024 11:36

Not sure the posts on this make much sense. The implication in posts above is that CREI is a 'good' REIT, a thought primarily driven by the lower discount to NAV. API on the other hand is a 'bad' REIT because of its significantly higher discount. On that basis i would assume that the market has a positive view on CREI management. They have undoubtedly looked closely at API and have concluded that there is merit in the combination. They could have struck a deal with a number of alternatives but they have chosen API. CREI will be acquiring assets at a circa 25% discount and will benefit from a number of cost saving synergies. I think the deal makes compelling sense for both parties and 20 years ago would have been backed enthusiastically by pension funds. Unfortunately, there no longer appear to be any long term investors in the UK market. Backing management doesn't appear to be on the agenda anymore.

[cc2014] 19/1/2024 10:12

I'd agree. This is going to get voted down.

[skyship] 19/1/2024 10:05

So called deal dead in the water Day 1....

[9degrees] 19/1/2024 09:58

So if it isa good deal for shareholders why has the price dropped by 9 percent ???

[ammons] 09/1/2024 10:23

Sale of office property "....36% ahead of 30 Sept 2023 valuation". No idea what they originally paid for it but thats quite an uplift in just 3 months.

[skyship] 19/12/2023 15:10

As nick says above - far better value elsewhere.

A bit speculative but looks well overdue a large bounce back - CLI.

At 97p - 66.6% discount and a very well-covered 8.2% yield whilst you wait.

[pharmaboy3] 19/12/2023 12:09

Edison review on CREIhttps://www.edisongroup.com/research/occupier-demand-continues-to-drive-income/33071/

[nickrl] 06/12/2023 20:48

HY results tell us this one is steady as she goes free cash easily covers the divi. No debt issues for a couple of years but the unhedged RCF (6.7%) is being loaded up with capex although they have a few more disposals bubbling away. Not on much of a discount here with a yield of 6.3% and with divi looking unlikely to grow much from here unless they can fill the voids. Better value still available elsewhere.

[nickrl] 07/11/2023 19:07

Q3 NAV delivers another NAV decline and seems valuers have the knife out on offices particularly now. Also good to see that even with increased cost of the RCF (6.84%) from recent capex they are keeping the divi covered. These have proven more resilient than others recently and have always been very transparent on each asset that others could learn from but better value remains elsewhere currently.

[121spa] 27/9/2023 15:52

I hear what you're saying SKYSHIP. I like CREI. It's solid & offers some value. It just feels like there are other high quality REITs out there that are cheaper eg SUPR.

[nickrl] 09/8/2023 21:51

Q2 update slight drop in NAV with divi maintained and covered. RCF nearly maxed out with more capex in the qtr but can be expanded by another 10m which they will need i suspect given they've bought the leasehold on an industrial estate. RCH has a year to run but given its floating already they aren't hugely exposed on finance costs unless things worsen.

Another one where divi wont be going anywhere for a while and good that its covered but margin will get eroded away within a year i reckon.

[skyship] 17/6/2023 14:02

Jeex Pharma - you have the patience of Job.

You've been locked in for 9yrs earning dividends of 5.77%pa. Lose capital at a rate of 1.44%pa and you seem happy with an annual return of 4.33%!

Certainly wouldn't suit me; may not even suit EezyMunny.

I compound at 15%pa; and certainly need 10%pa to fund a 7% drawdown and add more to the pot each year.

Why are you happy with CREI and 4.33%pa? Or have you perhaps not realised how bad an investment it has been.

So, you can now ditch CREI (c90.2p), buy into the 3 alternatives I recommend above & thank me in a year's time.

You're welcome...

[skyship] 17/6/2023 11:06

Eezy - this is that 1st para:>

"The commercial property sector can provide rich pickings for VALUE investors prepared to spend a little time analysing the principal metrics of Yield, NAV discount and LTV; then delving into the detail of financing, tenant mix, lease lengths, sector spread, geographical spread."

So what piece do you not understand of LTV & financing?

Then why do you go on to rant against the qualified valuers? "it´s important to look MUCH deeper than some valuation from a thicko property valuer" !!!

I suspect they know a lot more about the commercial real estate market than the both of us; and anyone else posting here...

[pharmaboy3] 17/6/2023 10:00

Your posts always seem negative. I assume you're not invested in CREI, so why bother sharing?I bought in at 104p ,from float.the 12% reduction has been more than offset by the £250k divis I've received since launch.I'm definitely not an expert in this area, but the people who run the business are trustworthy, hardworking folk.They constantly upgrade the properties wrt ESG They also oversee a Private Investor Club,giving high net worth individuals a chance to invest in more high-risk opportunities. Most of which have been successful. Please remember they are also backed by Mattioli Woods,whose culture is fully aligned with CREI.