Share Name Share Symbol Market Type Share ISIN Share Description
Ground Rents LSE:GRIO London Ordinary Share GB00B715WG26 ORD 50P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.00p -0.98% 101.00p 100.00p 102.00p 102.00p 101.00p 102.00p 346,949 08:34:57
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 5.1 4.7 5.0 20.3 97.68

Ground Rents Share Discussion Threads

Showing 126 to 150 of 150 messages
Chat Pages: 6  5  4  3  2  1
DateSubjectAuthorDiscuss
20/7/2018
06:41
@andyj - I still hold them, but suspect the "regulatory uncertainty" needs getting out the way first. Until then, as you say, more capital falls look likely.
spectoacc
19/7/2018
17:02
Thank you for those. I had previously earmarked these as a buy if they reached 110, but the speed with which they fell alarmed me. Yields are pointless when capital is falling IMO. I set a new target of 100, but with an uncovered dividend, the sole reason for investing, I feel it is time to remove them completely from my watch list.
andyj
19/7/2018
16:45
Feel like doing a "Bull points/Bear points" but will just note: 1. They're pre-empting possible legislative changes (which are coming) & have offered all doubling ground renters (of whom they don't have that many) the option to switch to RPI (conclusion expected in early 2019). 2. "69% of the portfolio is inflation-linked and there is a geographical bias to the north of England at 61%. The Group's ground rent reviews are upward only, ranging from every year to every 50 years. Taking this into account, 35% of the portfolio's ground rent income is due to review within the next five years, or 62% within the next 10 years. If inflation, as measured by RPI, were to be 3.0% over the next 10 years, we would expect like-for-like ground rent income to increase 2.6% per annum." The "50 years" one made me laugh, but still - at least they've quantified what they expect to increase income by PA, even if that's actually spread over years. 3. They're sub-scale, c.£100m (£c.£120m net assets), and now seem unlikely to grow, at least without increasing gearing 4. The legislative changes are still up in the air (Brexit taking up Parliamentary time) 5. Their loan with Santander will need rescheduling in 2021. 2021 isn't that far away. 6. They claim only one of their assets has dodgy cladding: "To date we are only aware of one development within the portfolio that has ACM cladding. This site has a formally-constituted Residents Management Company ('RMC') within the lease structure, which holds all of the insuring, repairing and maintenance obligations. On that basis, the Group and BMF continue to support the stakeholders in meeting their obligations." 7. The dividend's uncovered & not expected to be covered for c.4 years
spectoacc
19/7/2018
16:30
@apollocreed1 - indeed, a point I've made previously on GRIO. Not only that, but not all their holdings are even inflation-linked. So a little rich them claiming to deserve a valuation like a Linker, particularly after the recent NAV fall over just 6 months. Still - a discount's a discount.
spectoacc
19/7/2018
16:27
Looking at their website, I note that the inflation-linked rent reviews are only every 5 years or 10 years or even 15 years. That's not very appealing as inflation can be shooting up while the same low 3% yields are being collected for many years until review. If the discount gets to something like 25% I may be tempted to buy more, but not until then.
apollocreed1
19/7/2018
16:02
Still no bottom in sight it seems.
spectoacc
27/6/2018
10:34
Liberum; Ground Rents Income Fund (Mkt Cap £103m) Interims: Additional 5% valuation decline Event Ground Rents Income Fund's NAV at 31 March 2018 was 124.6p (diluted NAV 123.4p) which represents a NAV total return of -3.9% in the six-month period from September 2017. NAV total return over the past 12 months is -7.1%. The decrease is due to a further c.5% reduction in the portfolio value due to ongoing weak sentiment as a result of proposed legislation changes. The biggest adjustment has been for assets with shorter review cycles. Flat and fixed ground rent assets are stable compared to the last valuation at September 2017. The stock trades on a -14.1% discount to diluted NAV.
davebowler
20/6/2018
09:13
Good point, but ARTL's a real mixed bag. GRIO may have bottomed - or may not ;)
spectoacc
15/6/2018
13:58
ARTL has 24% in ground rents and trades at a similar discount to NAV.
davebowler
06/6/2018
00:51
Slipped through my intended buying price of 110 and now edging closer to a 4% yield. But what use is a yield when the capital is collapsing?
andyj
04/6/2018
16:26
100k dumped at 104p, still not seen the bottom yet I fear.
spectoacc
30/5/2018
18:27
I suspect the change in NAV is less to do with any interest rate model and more a reflection of the lack of liquidity in the ground rent market. Not surprisingly, the valuers have opted for a conservative valuation. GRIO have invested a little more cash (£2.3m) but unfortunately it doesn't say what yields were achieved. Being a closed end fund with available funds, you would hope they can take advantage of poor market sentiment to pick up cheap assets.
jombaston
30/5/2018
08:03
I don't doubt US nominal rates affect supply and demand for competing assets globally. What I am saying is the issued NAV of GRIO is in part model based, and a USD nominal yield does not figure in that model. A GBP real rate does.
erstwhile2
30/5/2018
06:48
@erstwhile2 - US 10yr affects everything. If you could get eg 5% from (theoretically) completely safe T-Bills, what yield would GRIO have to be on to be worth holding? (Yes, you could argue TIPS are more relevant to GRIO - but as I've said all along, GRIO are not a true RPI linker). (@apollocreed1 - I doubt a Corbynista govnt is priced in yet! But legislative time for ground rents reform also seems to be lacking atm).
spectoacc
29/5/2018
19:56
I just bought some today at 107.9. that's a discount of about 12.6% to the diluted NAV of 123.44. If infrastructure funds are trading at discounts of 3% then GRIO has similar inflation-linked income streams and the political risk is already priced in.
apollocreed1
29/5/2018
19:32
Nothing to do with US 10 year. That is (a) USD, and (b) nominal.NAV change is mainly mark to market impact of GBP real discount rate on the ground rent cash flow profile. BoE website is your friend for the real yield curve shift between those NAV dates.
erstwhile2
29/5/2018
17:20
Wonder if NAV decrease (based on Savills valuation) is the beginning or the end, and based on what's been happening to ground rents (ie political) or what the yield curve's been doing/US 10yr going over 3%.
spectoacc
29/5/2018
16:20
Another 5% decrease in NAV. They seem to be accelerating back down to 100. And is the dividend now uncovered given the announcement today?
andyj
25/5/2018
16:06
@apollocreed1 - not idea re Alpha's fund I fear. My predictions re GRIO's price have come true tho - pity I bought starting at 114p! Still can't see that the price has found a bottom, tho did go XD too. Current RSP price is 107.1/108.999, a little better than recently when they've twice quoted me the bid price to buy.
spectoacc
06/5/2018
12:44
@SpectoAcc - do you know A Any news that would have prompted that sale? Also, does anyone on this board understand why ALPHA Real's Freehold Income Authorised Fund has performed so much better than GRIO over the last 5 years? I'm not keen on investing in ALPHA's fund due to the dilution fee which is about 6%, but am wondering if these 2 funds invest in the same type of asset or not.
apollocreed1
04/5/2018
14:38
45.5k dumped a penny below the bid at 112.5p; further to fall yet methinks. Long enough for time being tho.
spectoacc
01/5/2018
16:02
Very much doubt this has seen a bottom but just bought for first time. I still say it's massively more risky than any Linker - bad enough what the Tories are planning, wait until the Comrades get in - but the discount, yield, and being sold some only a fraction above the bid price has sucked me in.
spectoacc
10/1/2018
16:01
Ban on 'almost all' new leasehold houses in England to have retrospective effect, says government https://www.out-law.com/en/articles/2018/january/ban-on-almost-all-new-leasehold-houses-in-england-to-have-retrospective-effect-says-government/
sikhthetech
28/12/2017
16:19
http://www.bbc.co.uk/news/business-42439155
sikhthetech
21/12/2017
14:33
MCS's RNS this morning is worth a read, if anyone wondering why the selling at GRIO. I've not read the press reports so don't know if/how much it affects them (ie is it retrospective?).
spectoacc
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