Life Science Reit Share Discussion Threads

[jonwig] 15/2/2024 14:46

CousinIT - thanks, that's the kind of thing worth pursuing!

[cousinit] 15/2/2024 13:58

I've been kicking the tyres here and wonder if anyone has any views.

The discount and the yield are definitely on the credit side, along with an element of pain already taken to refinance to 2026.

On the debit side:
Rent guarantees on asset voids have now expired with limited new letting (esp Cambourne)

Rolling Stock Yard has high quality tenants but like Cambourne the WAULT is short to break. Also Gyroscope has stopped development of their lead asset so is there a chance they exercise break? (See Syncona results)

Feels that the slow transition of some of the office assets into labs/hybrid opens up the risk of the valuer getting the red pen out on the back of general office value declines, especially given that these were largely bought prior to rates rising. The new OTP leases are a definite positive but the asset has less effect than the chunkier London/Cambridge ones.

[jonwig] 15/2/2024 10:00

Incidentally, if the FY net rental income were £13.5m, it would have to pay out 90% of that as a PID, ie. 3.4p. So the FY dividend would be 4.4p giving a historic yield of around 9%.

So it does look cheap ... but are the tenants high quality ones who can be relied on to pay the rent?

[jonwig] 14/2/2024 17:08

#134 - at the interim, the 1p dividend cost £3.5m, and net rental income was £6.6m. So that's decent, but earlier dividends were probably uncovered (as they weren't invested enough to earn rent). It will be clearer with the final results - probably end-March.

#135 - I think you've misunderstood. Their LABS shares were held in a client's account. The client has since taken his funds elsewhere. So he's either sold the shares or holds them with another asset manager. If the latter, he ought to be issuing an RNS saying so.

[gbcol] 14/2/2024 15:55

Re Hazelview RNS states under reason for notification “ Hazelview Securities Inc. no longer having control or direction over a client's assets.”

Well as they bought at £1+ and sold at half that I’d say that they never had control over clients’s assets! Personally I prefer to lose my own money rather than pay someone else to do it.

[orinocor] 14/2/2024 10:45

its not clear to me whether the 4p annual dividend is covered. any views?

[bathcoup] 14/2/2024 10:22

Hazelview Securities are obviously selling at a substantial loss. Do they have a legitimate reason? - that's my concern

[parsons4] 13/2/2024 12:17

The other RNS this morning is the answer for the very weak share-price. Don't forget the advisors bought stock recently at over 60p I topped up this morning because I think they are too cheap.

[davebowler] 13/2/2024 10:58

Liberum
New lease at Oxford Technology Park for £20.1 per sq. ft.
Analyst: Joachim Klement

Mkt Cap £181m | Share price 51.6p | Prem/(disc) -42.5% | Div yield 7.8%

Event

Life Sciences REIT announced that it has fully let Building 5 at Oxford Technology Park, covering 57,000 sq. ft. to WAE Technologies. WAE is a technology and engineering provider to a range of sectros, including green energy, medical engineering, and automotive. WAE is part of Forrtescue, a listed Australian company which aalso has an investment fund that invests in a wide variety of businesses including spinouts from Oxford and Cambridge Universities.

WAE will pay an annual rent of £1.146 million, or £20.1 per sq. ft. for a ten-year term with a break at year five on half the space and a rent review at the end of the fifth year.

Liberum view

This lease continues the improvements in the Oxford Technology Park. Since acquiring the space, LABS has increased the average rent from £15 per sq. ft. to £19.2. At £20.1 per sq. ft. the new lease is in line with this improvement and will increase the occupancy rate. However, the average WAULT to break for the Oxford Technology Park is 10.8 years and WAULT to expiry is 13.2 years so the new lease will reduce the WAULT for this asset somewhat.

[chrisdgb] 13/2/2024 10:19

Should bounce when this stock overhang is cleared...

[chrisdgb] 13/2/2024 08:11

Decent let this morning........zero interest

[chrisdgb] 12/2/2024 11:58

The Board need to use the results in March as a major relaunch of this proposition...or sell it..

[bathcoup] 08/2/2024 18:10

in free fall - so much for "The Company is targeting a NAV total return in excess of 10 per cent. per annum"

[chrisdgb] 26/1/2024 11:03

Languishing.........

[yump] 02/1/2024 11:57

Just been having a look here to try to figure out whether its worth investing.

I found this a helpful source:



Unsure as to whether LABS was a speculative, badly timed float, or whether the upgrading of existing estate allows for premium rental prices.

I saw the £20/sq ft one, which seems way below anything except a bare hybrid space !

There seems to be a discrepancy between the rates quoted in the survey paper and the rates obtained by LABS. I assume this is because the full rates would require much more development and LABS is not doing that.

So its a fairly basic REIT that is just acquiring space in what is expected to be a growing and stable market, rather than attempting uplift and premium rates.

Was the original intention to do the latter, but interest rate rises have scuppered it ?

I note 2 Oxford rentals have 10 year terms, so those are secure, but also impossible to improve on.

[saltwood] 31/12/2023 09:27

I saw news this morning that Novo Nordisk has secured space in London's Knowledge Quarter where LABS' Rolling Stock Yard is based. I did see that RSY has a vacant floor and wondered if we might have a nice RNS to greet us early in the New Year?!

hxxps://www.scrilnow.com/novo-nordisk-to-launch-ai-research-hub-in-londons-technology-district/

[chrisdgb] 04/12/2023 07:58

All sounds good here, disappointed we have not been able to move through the 70p level.......

[jonwig] 25/9/2023 17:58

Here's the explanation -

The increase in shareholding outlined in this form has been driven by the all-share combination of Rathbones Group Plc with Investec Wealth & Investment Limited which completed on 21st September 2023.

It's happened with a few shares.

[gbcol] 25/9/2023 13:55

That last Blackrock holding RNS was confusing. They previously issued an RNS stating they held 4.7% and then a few days later issued one saying they held <5%, which seemed superfluous to me, not to mention rather vague. (Edit: albeit there were some financial instruments involved which probably meant it was necessary, but was still vague)

[jonwig] 25/9/2023 13:36

Yes, the different nominees are confusing, but the net amountis significant. Meanwhile BlackRock appears to have sold down quickly.

[gbcol] 25/9/2023 13:13

These holding RNS’s can be a bit confusing but it appears from this one that some parties (4 different ones on this RNS for some reason) have added a position of over 17.7% in recent days, which is a substantial chunk and position.

[jonwig] 19/9/2023 07:02

BlackRock went to 5.26 yesterday (or rather, last Friday).

It's also possible Thursday's H1 results have something of interest. Most likely there's some M&A activity in the wings: strategic review of the discount, sale of assets and liquidation, takeover bid, etc.

Science labs are a big shortage area, so the assets here should be very liquid. Latest NAV was 91.3p (Dec 31).

[chrisdgb] 31/8/2023 08:46

Flurry of interest today.....??

[chrisdgb] 09/8/2023 11:10

Nice letting today.........