Ing Uk Real Estate Income Trust Share Discussion Threads

[alanji] 25/8/2009 09:16

6 months results, announced today puts more meat on the 30 June value and eps. Also a welcome renegotiation of the managers fees (why have all other companys not renegotiated?)
It is confirmed that the dividend will resume at 1p per quarter - a yield of almost 10%. Importantly, after adjusting for the reduced interest, renegotiated managers fee and one off costs, I make the eps for the 6 months about 2.5p - so the dividend is well covered.
Swap costs have not been added back for the nav figure of 49pps, which would add another 3.75pps, giving a discount of almost 20%.
Adjusting for post year end transactions there is over 20% headroom on the ltv covenant and the company has cash to buy up bargains once the recovery is confirmed.
I have also posted this on the CP+ thread.

[flying pig] 03/8/2009 13:50

LOAN PREPAID EARLY. Latest RNS.

All systems go looking forward.

[nickcduk] 30/7/2009 13:28

Looks as though I was spot on with companies switching from SLI into IRET. Rensburg have announced reduced holdings in SLI and an increase in IRET. Would expect that to continue. REIT sector is up sharply today with the roll call of stocks trading above NAV rising again. Only a matter of time before likes of IRET and IFD catch up.

[qwazi] 29/7/2009 13:53

Yes, it would appear that way, with IFD and IRET rallying quite nicely. Hopefully we'll see some follow through on TAP soon!

[qwazi] 29/7/2009 13:53

Yes, it would appear that way, with IFD and IRET rallying quite nicely. Hopefully we'll see some follow through on TAP soon!

[nickcduk] 29/7/2009 13:47

Seeing a little weakness relative to sector in the likes of UKCM and SLI. My guess is there is some switching into likes of IRET. Higher yield and bigger NAV discount. Those with gearing will start to be rewarded soon so would stay away from likes of UKCM and fCPT personally.

[nickcduk] 28/7/2009 21:35

Apologies. Was a bit quick off the mark. NAV was indeed 49p. Dividend should be covered going forward now that the cash has been utilised to pay off debt. Got back in IFD at 32.25p. Just a bit gutted I didn't manage to short it at 37.5p yesterday.

[skyship] 28/7/2009 18:45

Nick - didn't NAV come in @ 49p? Even at 49p the NAV discount @ 35p = 28.6% & the yield on 4p/annum = 11.4%; so there could be a tad more to go for - possibly to 39p/40p if evidence of contracting yields.

[qwazi] 28/7/2009 08:03

agreed nickcduk

[nickcduk] 28/7/2009 07:53

Dividend re-instated at 1p per quarter. NAV came in at 52p. Makes IRET most attractive of the trusts imho. Should be trading nearer 40p to bring it into line with IFD.

[asmodeus] 10/7/2009 13:00

Should this thread now be re-entitled "Cheap" rather than "Expensive" ?

[skyship] 10/7/2009 09:42

TILTS - Is it indeed - thnx for that. Though I suppose L&G will continue as the tap @ 31p. Did they have a view on ALPH now they've retreated a full 20% from the May peak?

[tiltonboy] 10/7/2009 09:01

IRET a preferred play in the latest Numis report.

[alanji] 09/7/2009 17:39

Good news. Now very similar figures for discount, yield and headroom to IFD (see my post on that thread). Covenant headroom on IFD slightly better but IRET div at 4p is covered whereas IFD is not.

[skyship] 09/7/2009 17:09

Now we just need a broad-based recovery in the CP sector.

I expect the next NAV statement (c.21st July) will cut our NAV to 44p, so @ 31p the discount reduces to 29.5%. Confirmation of a restored 1p Qtly dividend would provide a 12.9% yield. Value perhaps; but no longer outstandingly cheap. I suppose we could see progress to 35p for a 20.5% discount and a yield still easily in double figures @ 11.4%.

[flying pig] 09/7/2009 17:00

Agree good news overall. Time now for regular dividends!

[nickcduk] 09/7/2009 15:51

Think today's disposals should dispel any worries on covenant breaches going forward. Now we need our dividend re-instated. Personally I wouldn't mind if they put a few million towards a share buyback.

[nickcduk] 23/6/2009 13:57

Now the disposals are out of the way we should get our 4p a year in dividends. I think it will still be covered because management fees will have fallen 2m or so plus on an annualised basis. Looking to add more on any pullbacks. The fact that it has performed relatively well during the recent sharp market falls bodes well going forward.

[martincc] 10/6/2009 08:47

Divi dropped for 1 Q but still propose to pay 3x 1p divis this year. If they do, yield is around 10% this year, and 13.7% on a full year.

They need to repay £35m notes + costs £2m
Yesterday's sale will give them approx. £34m, so nearly there.

Bought some more yesterday at 28.4p
Level 2 looking strong 265k v 125k, may be a seller at 29.5p

[scburbs] 22/5/2009 20:26

Qwazi,

If they can generate enough cash then they can, but £35m is clearly earmarked to buy bonds at par.

"£35 million of the principal amount outstanding under the £225 million Facility will be reduced by January 2010 through one or more tender offers, with the first tender offer being held in July 2009 for a minimum of £15 million principal amount of notes. The tender offers will be at par."

[qwazi] 22/5/2009 08:37

If the bonds are trading at a discount, not sure why they can't just buy them anyway.

[scburbs] 20/5/2009 22:00

It's a shame that they had to concede on the auction for the bonds in order to get the covenant changes passed. That auction would have booked them a large profit.

[kavnish] 20/5/2009 20:55

I have been averagin from 40p onwards and added recently at 18 , I am looking for 25p as my re entry point to increase the size of holding significantly

The covenant breach had put me off so was waiting for this to settle down

[lord gnome] 20/5/2009 08:20

Yes - this now looks a very safe high yield investment at these levels. Pity I paid 44+ for most of mine :-((

[kavnish] 19/5/2009 21:43

A good result , no increase in margin , cash on balance sheet to cover most of repurchase and no arrangement fees

To give up dividend for only a quarter is not a bad trade at all.