Ing Uk Real Estate Income Trust Share Discussion Threads

[badtime] 01/10/2008 20:43

Tilts mind me asking yur views on TAP?

[tiltonboy] 01/10/2008 20:37

Sleepy,

They are a long way from breaching bank covenants, and each little sale gives them more leeway.

I met TAP today, who have a similar profile to IRET. They expect markets to be difficult for another year, but are hopeful of some recovery thereafter.

tiltonboy

[sleepy] 01/10/2008 16:43

What happens if they breach the loan covenant?

[flying pig] 01/10/2008 15:40

small asset sale provides some extra cash to repay the debt. this share continues to look a sensible investment.

[finbarr] 19/9/2008 08:51

nickcduk,

what discount to nav is merited here?

[nickcduk] 18/9/2008 12:37

Sector has been pretty resilient of late but IRET has performed fantastically. Still very undervalued versus its listed peers in terms of income. Large QVT overhang allowed some fantastic trades to take place around 42p. Not going to let them go for a while yet.

[badtime] 16/9/2008 21:48

Nice rise on a poor market day

[skyship] 09/9/2008 16:22

Thanks Tiltonboy - got in with a few @ 46.25; will hold off for more at c.45p

Herewith comment on another in the tertiary property stable:

[lord gnome] 08/9/2008 07:41

Excellent disposal news. Should have a positive impact on gearing and risk - ans the sp!

[tiltonboy] 07/9/2008 18:36

SKYSHIP,

Will send it to you tomorrow.

tiltonboy

[skyship] 07/9/2008 17:58

Tiltonboy - You posted recently: "Cenkos have written a couple of notes on the sector, and even in their "doomsday scenario" they value IRET at 48p."

Anything available to email me? Did they also cover MERE & IFD by any chance?

[lord gnome] 05/9/2008 10:20

Except that you can't get any charts.

Thread abandoned!

[lord gnome] 05/9/2008 10:19

Here it is - your new thread with all the whistles and bells.

[lord gnome] 05/9/2008 10:17

Just joined you all for a few. These seem to have bottomed out at around this level so i think it is reasonably safe to dip a toe in the water.

Hope you don't mind, but I want to start a new thread as this doesn't have charts or news feed. I'll get one going and post a link.


Edit:
Oops - new thread started and immediately abandoned - not possible to get any of the usual links to charts, fundamentals or news. looks like we're stuck with this one.

[nickcduk] 03/9/2008 09:06

Looks like we have a new buyer on the scene. Rensburg disclosed a holding yesterday. Would expect them to increase their holding in due course. Its a fantastic opportunity to put their clients into. Would be nice if they were able to clear out the overhang that QVT seem to have created.

[washbrook] 28/8/2008 11:14

Bought at 42.23p including costs

[tiltonboy] 28/8/2008 11:03

nick,

Just had a more detailed look at the figures, and especially the statement.

As mentioned previously, my major concern is on covenant strength/risk of voids. The Trust managers believe that 14% of the portfolio is medium high/high risk.

They expect to repay the non securitised debt (£57.2m)by the end of the year, which will bring the cost of debt down to 4.9%.

tiltonboy

[tiltonboy] 28/8/2008 08:48

nick,

Don't disagree with what you say. I'm also not certain about comments of proprties being in the hands of solicitors. Have they sold/areed to sell further properties, subject to legals?

It does look as if further sales are on the cards, but it sounds as if this is readiness of the effect a further fall in values will have on banking covenants.

Dividend cover of 88% probably means that there will be a cut during the next 12 months, but I have already factored this in.

I hope you are right on TAN.

On the increased TER, I'm afraid that is the inevitability of the fall in NAV, and something I'm not concerned about. The actual costs have not increased.

Overall, I'm fairly happy. The dislocation in money markets means that historic comparisons of returns (bond yields v property yields) are out of the window for some time, but I'm sure they will narrow. Question is, when.

tiltonboy

[nickcduk] 28/8/2008 08:29

Tiltonboy,

Today's announcement was a little disappointing. Not so much the numbers but the downbeat commentary that accompanied them. They point out gearing has risen from 41% to 47%. I think they should also have pointed out what the net gearing figure was. They have a large chunk of cash on the balance sheet which would bring net gearing down to 40%. Instead of making this clear they are instead showing that gearing has risen and is a bigger problem than last year.

Im not too worried about the TAN tenancy. TAN have a huge wad of cash and even managed to secure extra facilities a couple of months ago. Should be good for their word for a couple of years at least before you have to start worrying about them.

Bit disappointed that costs have increased as a percentage of assets as well but income looks good and I am sure they will make further progress on covering the dividend in the second half.

[tiltonboy] 27/8/2008 11:32

nick,

It will be interesting to see what they say tomorrow. Like you, I would like to see a share buyback, even if it meant taking a 10% hit on carrying values of properties.

One slight worry, when I was trying to see who their tenants were, is Tanfield, who are having a few problems.

I can cope with values falling, but as soon as voids start to take effect, we have problems. Hopefully we won't see too many.

tiltonboy

[nickcduk] 27/8/2008 10:48

Nice little disposal on Friday which makes the bull case for IRET even stronger. Another 4.5m off the debt pile and both earnings and asset value enhancing. That suggests they sold it at a premium to NAV. Company will report later on this week. I am hoping they will announce some form of share buyback programme like IFD have. That should push the shares up to over 50p in relatively short order. In the meantime I am happy to mop up the 14% yield on offer at present. Picked up 25k at 42p this morning and am on the book for another 25k at 41.75p.

[badtime] 08/8/2008 21:37

took a nibble first up at 43.25

[tiltonboy] 08/8/2008 09:26

flying pig,

On the dividend front, I was pleased to see that the quarterly dividend was maintained, though I would prefer that all dividends are paid from income rather than partially from capital. If they entails a modest cut, then so be it.

The shares trade at a huge discount to NAV, and I wonder if the board would be better off taking the Invista view, and selling a portion of the portfolio, with a view to buying back shares for cancellation.

tiltonboy

[flying pig] 08/8/2008 09:17

Modest toe in water at 43.25p - just for a try. I agree with your analysis - I think dividend might be reduced but from 14+% there is some room before I get too upset.