Life Science Reit Share Discussion Threads

[chrisdgb] 29/10/2024 09:09

Still behaving better......

[chrisdgb] 14/10/2024 06:28

Certainly more than a whiff of recovery with this one.......

[cousinit] 01/10/2024 07:45

Feels like this has been tipped with lots of small buys going through

[c3479z] 30/9/2024 14:41

see that a big expansion in Lab space has been approved in Central Cambridge, will be a year or two before it's built out.

[spectoacc] 30/9/2024 14:36

Finally out here into a surprisingly strong bid - good luck holders.

[wshak] 30/9/2024 13:49

Looks like LABS have decided that the first episode of a new series in The Apprentice is a good model for them to justify their fees.

[hpcg] 27/9/2024 11:18

ghhghh - Agree entirely with this: "Re the 'failed business model', this applies to many other REITs/Trusts/companies who sought critical mass by accessing future funding that evaporated overnight." It was an approach by the fund management industry predicated on low interest rates and an inexhaustible demand for SOFR+ income on assets. That hit the brick wall of reality and almost all the sub-scale funds should really be looking to liquidate. Some may have the ability to expand through trading and asset improvement but that will be a lot harder work than they would have bargained for.

[wshak] 27/9/2024 10:20

I'm not sure why LABS was created as a REIT, as it's far too small. Who cares if selling Herbrand St ends its future as a REIT - it's not cost effective anyway.Perhaps they thought that they could issue loads of shares at full NAV, and get bigger that way. Historically, that has been the model for these REITs and ITs whilst they were valued highly.Different model now, though. Investors want their money back, and they won't care if LABS survives as a REIT or not.

[ghhghh] 27/9/2024 07:08

They say they meet with Thought Machine for an hour every two weeks to discuss the future for Herbrand Street. I was the first here to advocate selling it but that really would be the final nail in the coffin for LABS the REIT. Herbrand is the largest income source.

Re the 'failed business model', this applies to many other REITs/Trusts/companies who sought critical mass by accessing future funding that evaporated overnight.

All I'm interested in is whether the assets are good and whether they can survive long enough to realise that value. RSY looks prime, Cambourne looks better than I expected (perhaps because no power supply issues) and OTP units 10 and 11 on hold.

Herbrand Street is a concern if Thought Machine walk but two years away. And they are meeting every other week...!

I bought more yesterday, the discount to NAV is excessive thanks to another big seller.

[loglorry1] 26/9/2024 19:40

I watched it too. I think we can safely say that since IPO they have well and truly proved the business model.

Proved that it doesn't work.

Clearly best to just sell what the can, use the cash to develop the assets and wind it up. Sadly, while that's best for shareholders, it's probably not best for the board and everyone else who are currently pocketing half the rent collected!

Still a lot of jam tomorrow, but they do have a plan (cue 'A' Team music). I still own some from the clean up trade, but I'm not buying more.

Toodles.

[wshak] 26/9/2024 17:43

LABS is too small to run as an independent listed vehicle - it makes no sense given the costs involved, even if the shares are restored to full NAV, which is highly unlikely.Herbrand is an obvious target for disposal, presumably above current book value if it's so highly valued, or the existing tenant wants to buy it.There seems a fairly obvious move to make here - sell Herbrand and use a good chunk of the funds to buy back shares if they are anywhere near current levels, driving up NAV.That should give time for the team to finish developing OTP and carry on with their plans for now.Once low hanging fruit has been picked, merge with a larger player.

[ghhghh] 26/9/2024 15:31

I've watched the Webcast, all looks pretty positive.

Anyone else thinks there is a conflict a conflict between Chair Claire Boyle putting up the For Sale sign and Simon Farnsworth who states best way forward is to keep going.

He's probably right listening to the Presentation (we may be at the corner) but one has to be a bit cynical!

[hugepants] 26/9/2024 13:49

I doubled up this morning. The narrative is quite confident.I was half expecting a huge nav writedown to match the share price fall.

[wshak] 26/9/2024 10:41

Impression I got was that they were less concerned about refurb now. £15-20m costs involved in that, how many shares could that buy back?

[ghhghh] 26/9/2024 09:34

Re Herbrand St

The lease at Herbrand Street in London, runs until Q426 and we engage regularly with the occupier ahead of this expiry to discuss options

Plan A was VP and a Lab refurb so this implies a change of tack. Extension or sale?

[wshak] 26/9/2024 07:44

Costs of running LABS is more than half what they collect in rent.

This is surely unsustainable?

[wshak] 26/9/2024 07:27

Must be said, however, that it's a major relief that they at least have some leases lined up at OTP.

The market's major worry is that it is a dud, as well as the prospect of them cutting their (uncovered) dividend again.

A bigger player should be able to pick up this minnow with barely a burp.

[wshak] 26/9/2024 07:15

I'm not convinced it is actually for sale, despite the paragraph above.

The obvious move is to sell Herbrand Street and engage in a huge buy back, unless they can get an offer close to NAV, which seems doubtful.

[spectoacc] 26/9/2024 06:28

Suspect the For Sale sign been up for some time. "..Continues to..".

They can blame macro factors, but the property sector is out of the doldrums everywhere else - problems are largely of their own making.

[ghhghh] 26/9/2024 06:25

However, the Board is mindful that the size of the Company and corresponding low levels of liquidity in the stock are unhelpful, and fully understands that macroeconomic factors will have a role to play in supporting a re-rating of both our company and the sector. The Board therefore continues to evaluate a variety of options which best position us to maximise value for shareholders and we remain alert to all potential opportunities to achieve this.

For sale sign just gone up!

And dividend held

[spectoacc] 26/9/2024 06:08

"...We have £3.2 million of ERV, under offer or in advanced negotiations and expect to convert this to contracted rent over the next six months."

[spectoacc] 24/9/2024 08:15

What is there to trade out of? Lab sector booming, LABS completely dire. If they can't do it in this market, they're not going to do it once others have built new space.

But still a few days for good news to appear.

[chrisdgb] 24/9/2024 08:03

Do we want a takeover though or would we prefer the company to try to trade out of it...?

[wshak] 24/9/2024 07:57

Looks like a PR piece in the Times.

LABS looks like a sitting duck for someone, in the meantime.