The Local Shopping Reit Share Discussion Threads

[skinny] 27/6/2014 12:00

No - as it says 'property trade press' - slightly nebulous.

[jaws6] 27/6/2014 11:53

Skinny
Do you where was this press comment ? any paper ? only if you know.
Thanks

[skinny] 27/6/2014 11:49

Press comment on potential asset sale

The Directors of The Local Shopping REIT plc note references in the property trade press to a potential sale of a portfolio of the Company's property investments.

As stated in the Company's half-year announcement, two of the Company's property holding subsidiaries have been marketed for sale. Discussions are progressing with a party for the sale of these subsidiaries, which may or may not lead to a transaction.

The disposal of the Company's assets, including by way of portfolio sales, is in accordance with the investment strategy approved by the Company's shareholders in July 2013. The Company's management has under consideration a number of options for the execution of the strategy decided by shareholders including, but not limited to, portfolio sales and will execute sales in a form which best contributes towards shareholder value.

ENDS

[gfrae] 27/6/2014 11:48

Unless they sold both to the same person.

[jaws6] 27/6/2014 11:48

Where was this rumours today ?

[jaws6] 27/6/2014 11:45

RNS on report

[eezymunny] 27/6/2014 10:46

From memory they are trying to sell 2 subsidiary companies that own the properties and carry the debt. So 2 contracts and 4 copies ;)

[redhill9] 27/6/2014 10:04

One contract, two copies :>}

[gfrae] 27/6/2014 09:58

Presumably just one contract,though complex.

[redhill9] 27/6/2014 08:04

Surely they'd wait until contracts are signed before announcing? This could take time with so many properties involved.

[badtime] 25/6/2014 12:36

Still waiting for this rns

[skyship] 17/6/2014 12:41

BT - it was only 100k; not worth the candle!!!

Strath - well spotted; there must surely be an RNS any day now then...

[strathroyal] 17/6/2014 10:44

I see that the Allsop site is showing Project Minard as Under Offer, anybody have any details?

[badtime] 11/6/2014 19:34

Large sale....u top sliced sky :)

[skyship] 02/6/2014 13:32

That 80k @ 08:11 this morning was a reasonable size and took out the available stock. Hopefully will prove to have been a well-timed entry ahead of the result for Project Minard.

[badtime] 02/6/2014 10:30

Nice to c 32p on the bid

[gfrae] 30/5/2014 15:52

No news from Allsops?

[gfrae] 23/5/2014 10:51

At last sorted out.
So,we are looking at an increase of about 4-5pps p.a. in N.A.V.
Made up from approx approx 4pps profit from running profit,sales in excess of n.a.v. Plus modest increase in n.a.v. of properties.
Plus nearly 1p a year on amortisation of interest rate swaps.
Y/e N.a.v should be around 46p.
All other things being equal (which,of course,they won't be!)
Looks a reasonable bet to me.

[scburbs] 23/5/2014 07:11

One by one, must be pretty embarrassing and entirely avoidable through actually reading the announcement. Firstly read it before you release it and once an error is spotted requiring an amendment make sure to read the rest to ensure no more errors! Anyone want to tell them about this remaining error? (probably not the only one)

"The adjusted NAV of the Company as at 31 March 2013, excluding liabilities arising from derivative financial instruments, is £40.4 million or £0.49 per share (30 September 2013: £39.9 million, £0.48 per share)."

[skinny] 23/5/2014 07:02

This amendment has been made to the 'Results for Six Months to 31 March 2014' announcement released on 22/5/2014 at 10:18am under RNS No 8117H in order to clarify the figures for Adjusted NAV under Financial Highlights and for property sales under Operational Highlights. The full amended text is shown below.


The Local Shopping REIT plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2014

London: 22 May 2014


The Local Shopping REIT plc ("LSR", the "Company" or the "Group") (LSE: LSR), a real estate investment trust focused on investments in UK local shopping assets, is pleased to announce its results for the six months to 31 March 2014.

Financial Highlights

· Recurring profit* for the period of £0.92m or 1.13 pence per share ("pps") (H1 2013 restated: £1.25m or 1.53 pps).
· Profit for the financial period of £1.75m or 2.15 pps (H1 2013 restated: loss of £1.55m or (1.90) pps).
· Directly owned portfolio valued at 31 March 2014 at £167.6m, reflecting an equivalent yield (excluding the residential element) of 9.33% (30 September 2013: £167.3m, with an equivalent yield of 9.48%).
· Net Asset Value (NAV): £35.38m or 43 pps (30 September 2013: £33.63m or 41 pps).
· Adjusted NAV: £40.4m or 49 pps, excluding liabilities arising from derivative financial instruments (30 September 2013: £39.9m, 48 pps).
· Total net debt of £125.8m, reflecting an LTV (net of cash reserves) of 74.7%.
· Debt free properties valued at £6.76m.
· Rental deposits of £0.89m held, representing 23% of the quarterly rent roll.

Operational Highlights

· At 31 March 2014 portfolio comprised 629 properties, with 2,037 letting units, producing an annual rental income of £15.2m (30 September 2013: 640 properties with 2,037 letting units and rental income of £15.45m).
· Property sales totalling £1.821m, a premium of 18.05% to preceding valuation.
· Like-for-like rent down 1.3% since 30 September 2013, with no movement in like-for-like Market Rent.
· Overall void rate 12.47%, equivalent to Market Rent of £2.07m (30 September 2013: 12.38% and £2.11m).
· 55 properties let during the period at an annual rental income of £535,200. At 31 March 2014, 41 commercial units were under offer at Market Rents totalling £393,700.
· Rent reviews completed on 43 units resulting in aggregate rental income of £734,000 (an uplift of 8.74% to Market Rent).
· 15 lease renewals at a net rental decrease of £1,936 (-1.15%), although £3,185 (1.95%) above Market Rent.
· Consents secured for three commercial changes of use and two conversions to residential. Conversion of redundant upper parts storage unit to a residential flat completed. Since 31 March, consents obtained for three further use changes (one to residential).

[nk104] 22/5/2014 14:02

Sounds like my office HR Dept - you never believe anything until you've read the third version....

[tiltonboy] 22/5/2014 13:27

embarrassing to put one amended announcement out...but two!

[skyship] 22/5/2014 12:06

I've pointed out to the Company that the financial Highlights section shows the Adjusted NAV stats for 2013 NOT 2014!

Expect a second amended RNS later today...

[eezymunny] 22/5/2014 11:56

Well yes, NAV at 43pps and adj NAV at 49pps

As LTV is about 75% there's a geared effect on the outcome. Every 1% above NAV achieved on a sale gives a 4% increase in NAV. Similar in reverse if sales below NAV.

If ALL the properties were sold at 5% above current NAV we should get c. 51.5p returned. Or if all sold 5% below current NAV we'd get c. 34.5p (+/- adjustments for ongoing changes in deriv value(+), trading profits(+), wind-up costs(-), selling costs(-), tax(?) etc)

If sales 20% above NAV we'd get 77.5p, 20% below NAV we'd get 8.5p. Don't kid yourself this is a one way bet!

Project MInard is soliciting offers "in excess" of the NAV...but we can only guess if they'll achieve that.

As I say a leveraged gamble on whether props sell en masse above or below NAV with a buffer of 11-12pps on our side. We could make a boatload or get wiped out.

Rough numbers. DYOR!

[redhill9] 22/5/2014 11:41

Thanks EezyMunny. Looking at the range of targets for Minard disposal suggested by posters on this board a few weeks ago, the NAV value of £78.178m is at the lower end but the share price (up slightly this morning) is still reflecting a very substantial discount (assuming the residual part of the portfolio is of broadly equivalent value to the properties up for sale).