The Local Shopping Reit Share Discussion Threads

[spectoacc] 17/5/2013 16:35

Do New Solera put out all those Holdings RNSs just to confuse me?

[aleman] 25/4/2013 12:36

Downtrend broken on the quiet. Results 4 weeks today.

[rcturner2] 16/4/2013 11:52

LSR covered in IC last week.

Annual rental income of £16m and finance charges of £7.6m is quoted in the article.

[aleman] 12/4/2013 09:54

Going to break downtrend ahead of ressults?

[spectoacc] 11/4/2013 16:08

Solera still toying with us.

[phillis] 02/4/2013 12:21

either the NEDS have gone to sleep ( quite possible) or the potential buyer is trying to source finance - hence the delay

[gfrae] 25/3/2013 11:03

I think you are right,and already reflected in the price.
NAV 61p
NAV based on 9.5% yield.
Therefore share valuation based on underlying 21% plus yield.
Therefore share value less than 5x rental income.
At year end.

[bondholder] 22/3/2013 14:23

I think the fear is of a collapse of secondary rents and therefore valuations.

A panic sale now will just ensure destruction of value - three years is a long time- better to do nothing unless an equity co investor can be found.

[gfrae] 21/3/2013 14:17

They can't sell the properties,or at least not many,because there would be bank penalties, until 2016,and as you say it would reduce the dividend.
I agree,there is no problem,other than that the share price suggests that there is!. Certainly nothing that would'nt be solved by a small cushion of cash.
They would also make a perfect target for a large pension fund.

[spectoacc] 21/3/2013 14:05

Good point re REITS - think it's 90% of income? So alternative to cutting the divi would be to sell some of the properties, cutting the debt (& the divi) that way.

I'd be quite happy for them to just continue how they are.

[gfrae] 21/3/2013 13:14

That is a possibility,though I am not sure of the REIT rules.As I understand it they have to pay out all of their net income in order not to pay tax.
If they were able to have a dividend holiday,worries about their debt level woud be reduced,and therefore make the shares much more attractive.(Though not to income funds).

[spectoacc] 21/3/2013 12:41

Obviously hope something comes of the review, but if it doesn't, I can see them "rebasing" the divi to preserve cash & get a better deal from the banks for when 2016 rolls around.

Doesn't change the current value on offer though.

[gfrae] 21/3/2013 12:14

Baffling,where do all these sellers come from?!.
As it stands at the moment,though the company is going through a review which could change everything,
you could pay 28p,recvieve 3 years of net 4p dividends ie 12p,and own shares which currently have a NAV of 61p net all.
(NAV based on a 9.5% yield).
Therefore you would effectively be paying 16p for assets cuurrently valued at 61p!!
Obviously a lot can change between now and then.

[spectoacc] 11/3/2013 14:16

The value's def there, I'm just very curious what Solera were up to - guessing there's a rational explanation but yet to guess what it is. If they were "over the wall" on any bad news they couldn't have dealt.

[gfrae] 11/3/2013 13:13

The share price is discounting the absolute worst scenario,ie distress sale of all properties in a bad market.
The situation at their year end was NAV 50p including cost of interest rate swap,ex swap 61p.
Swap expires in 2016.
Therefore,if there is no further fall in the property values,you can pay 27p for properties which will be worth at least 61p in 2016.
In the meantime you would recieve 15%.p.a.
All other things remaining equal(which,of course, they won't).

[bondholder] 11/3/2013 10:33

With an election due in 2015 I think we can expect to see some fuel on the fire in the run up - perhaps next year.

[bondholder] 11/3/2013 10:29

There are no LTV covenants on the bank loans to mid 2016.

Perhaps they wanted to appoint a NED at the annual meeting.

I can't see why they would ,with no new news, go from buyer at 30+ to seller at 26? in two days.

Given that we have 3.5 yrs to sort out funding and the gov/b of e are going to target nominal gdp I'm going to bet on slow recovery in rents and prices with the exchange rate taking the strain.

[snatander] 11/3/2013 09:31

penalty bank rates? Have they breached covenants and are loans repayable on demand?
My own bankers are right sh1ts and im a good un

[bondholder] 08/3/2013 21:09

Sell on 7/3 is odd as only two days later. Any ideas ?

[bondholder] 08/3/2013 21:08

New Solera BUY 270,000 0.31 5/3
New Solera SELL 210,000

[spectoacc] 07/3/2013 18:51

Agreed @Phillis; fact it dcb'd from 23.5p a good sign. Some lucky soul got to buy down there; was 26p before I bought more.

[snatander] 07/3/2013 18:49

bank loan repayable on demand if covenant breached i would imagine

[phillis] 07/3/2013 18:43

if there were no result on the review there would have been an announcement by now

hope springs eternal

[spectoacc] 07/3/2013 18:42

Good luck - not seen any reason for the fall.