The Local Shopping Reit Share Discussion Threads

[topvest] 19/12/2014 19:53

Very disappointed by the results announcement. No property boom here!

[badtime] 19/12/2014 13:42

Eeza..depends when that was written I guess...the company only seems to give updates if there is press speculation

[alanji] 19/12/2014 09:59

Sky - I was replying to badtime and eeza's posts

[eeza] 19/12/2014 09:29

"We continue to seek opportunities to further the execution of the investment policy and a number of initiatives are in hand."

Would seem to suggest that the sale thro Allsops has fallen through - else why would they "continue to seek opportunities" if all properties are sold.

[cwa1] 19/12/2014 09:17

Morning

Taken a small punt at 32.8P Mad? :-)

[redhill9] 18/12/2014 17:25

If I was still holding I would be asking the co for an explanation.

I've just written asking LSR if the RNS of 17 October is still correct or whether anything has changed.

One thing of course that has changed since Project Minard is the Chairman - different hand on the tiller may mean different style of communication. I still don't see that LSR had to mention the latest sale, but do agree it looks a bit weird that they didn't, other than by the vague wording quoted in my post above: We continue to seek opportunities to further the execution of the investment policy and a number of initiatives are in hand.

I'll post on here any answer to my email, but am not expecting anything dramatic.

[skyship] 18/12/2014 16:19

Hi Alan - not sure what point your are making there. Are you referring to the Interims?

[flyfisher] 18/12/2014 15:59

Any ideas on what the fees and costs % will be in selling renouvier.

Also I see that the loan costs seem to be stepped up from 2015.

From accounts:-
A fixed margin of 2% applies to both facilities. An additional margin will accrue from 1 January 2015 and become payable on repayment of the loans (this accrues at the rate of 1%. per annum from 1 January 2015, 1.5 %. From 1 January 2016 and then 2%. Thereafter from 1 January 2017).

What size of exit penalty is envisaged if the loans are not transferred with the properties in the renouvier sale.

tia , for any replies.

[alanji] 18/12/2014 15:58

The Minard properties were declared as for sale and shown in the March accounts as assets for sale although they were not sold until August:-
"In line with the investment policy adopted last year, two of the Group's property holding companies are currently being marketed for sale and the valuations of the properties comprised in these companies are categorised as held for sale in the consolidated balance sheet."
The first reports of the sale were before 31 March and "confirmed" in the 4 April rns.

If I was still holding I would be asking the co for an explanation. Such an important thing should have been reported in the accounts one way or the other. Appalling.

[skyship] 18/12/2014 15:37

Well, personally I was surprised they didn't say more about Project Renouvier, but that could well be because matters are at an "interesting" stage.

Their envisaged timetable was certainly challenging, as I've posted previously it was far shorter than with Project Minard.

Watching for a cheap offer...

[redhill9] 18/12/2014 15:08

LSR announced by RNS on 17 October that The Directors confirm that property assets owned by the Company are being marketed for sale by way of the disposal of a number of the Company's property-owning subsidiaries.

Today they haven't specifically mentioned Project Renouvier but have said:
We continue to seek opportunities to further the execution of the investment policy and a number of initiatives are in hand.

If the properties were no longer being marketed they would have said so.

Reading through the results I don't think they're too bad at all. Included is the line:
Our investment property portfolio was re-valued at 30 September 2014 at GBP87,563,250.
There was some discussion higher up this thread about what price the remaining properties were being market for, and £90m and then £87m were mentioned. It would seem a sale at £87m would be close enough to NAV. Also, lets not forget the sale is for 387 properties and these were only put on the market 2 months ago, and looking at the geographical spread, these properties are located across the full extent of mainland U.K.. I know Project Minard completed very quickly but it was for less properties and I think were more concentrated in the South, and also its not unreasonable to assume the easier portfolio was marketed first.

I'm happy to hold and, although up to my usual maximum, may look to add if the price continues to drift.

[eeza] 18/12/2014 14:48

That's how I read it also. Accounts up to 30 Sept. Post events not mentioned.

[badtime] 18/12/2014 14:29

Just to offer a suggestion ..accounts to September 30th wouldn't show them in that way if they only started to market in October?Not showing on Allsops website as they aren't marketing any longer but in negotiations with prospective buyers?I could be wide of the mark

[alanji] 18/12/2014 12:26

Uninspiring set of results. The worrying thing for me is that there is no mention of Project Renouvier and it is not shown in assets held for sale (and not on Allsops website).
So, I am out for now but will be back if the price continues to fall or there is a favourable announcement on sales.

[strathroyal] 18/12/2014 10:33

Impossible to value the NAV at more than 42p as the swaps, accounting for a further 5p, are only amortised at £200k per quarter so if the latest project sells, these will have to be met in full. On the brighter side, the directors have not reduced the valuation of the remaining units so £87M must be a realistic price.

Having sold earlier in the year at 39p, I may buy on any fall back but at 36/37p, there is not enough potential upside to get involved.

[redhill9] 18/12/2014 09:40

Share price seems unmoved so far.

Using the adjusted NAV of 47p, the current Bid price of 35p for those of us holding gives a discount of 25.5% (although that doesn't include the unquantified adjustments on disposal). Equivalent discount for those buying at 36p is 23.4%.

Much as I'd like LSR to liquidate quickly, a small profit for the year and a current yield of 9.25% on the commercial element of the portfolio suggests value is accruing in the meantime.

[gfrae] 18/12/2014 09:32

Figures disappointing,low recurring profit (due to bad weather last winter),and values still falling in some parts of the country,though overall NAV up.
Further falls in interest rates have increased the liability on the interest rate swaps,it appears.
NAV only rising to 42p.
All depends on impending sale.

[skyship] 18/12/2014 07:41

Seems to be all as already known; and no mention of "Project Renouvier" sale...or did I miss something?

IMO this is the crucial bit:
============================

Results and Net Asset Value

On an IFRS basis, the Group recorded a profit for the financial year of GBP1.21m (2013: IFRS loss of GBP6.07m). The recurring profit for the year was GBP0.69m (0.8p per share), compared with a restated recurring profit of GBP2.07m (2.5p per share) in 2013. A reconciliation of the recurring profit to the loss before tax in the Income Statement is given in the Financial Review section, below. The net asset value of the Group increased over the year by GBP1.21m to GBP34.83m. This equates to an NAV per share of 42 pence (30 September 2013: 41 pence). The NAV per share adjusted for the fair value of interest rate swap contracts was 47 pence at 30 September 2014 (2013: 48 pence). This figure does not take account of adjustments which may arise on disposal of the remainder of the Company's investment property assets, including accelerated amortisation of certain balance sheet items and professional fees.

Portfolio Performance and Asset Management

Our investment property portfolio was re-valued at 30 September 2014 at GBP87,563,250. This reflected an equivalent yield (excluding the residential element) of 9.25%. The portfolio comprised 387 properties, with 1,190 letting units, producing an annual rental income, net of head rent payments, of GBP7.92m. On a like-for-like basis the portfolio valuation decreased by 0.25% from GBP87.8m.

[badtime] 16/12/2014 18:26

I'd say share price action ...soft market and nervousness awaiting news positive or negative

[eeza] 16/12/2014 17:13

SP action not suggesting positive outcome.

Eezymunny had it right selling out at 37.40p

[skyship] 16/12/2014 17:05

Well, I suppose if no sale then they will have to resort to piecemeal sales over a more protracted period. Might end up raising more that way; but I would expect LSR to initially dip back to 32p on such an outcome.

Would be a great BUY again at that level; but of course many of us up to our MAX allocation - certainly I am.

[alanji] 16/12/2014 16:43

Due Thursday - fingers crossed. Still nothing on Allsops website.

[badtime] 16/12/2014 16:24

Update would be nice

[skyship] 12/12/2014 19:01

Well, that was a bit of a shake-out lads. Hope everyone relatively unscathed.

Good weekend to you all...

[badtime] 12/12/2014 17:51

Nope...sticking to a self imposed linit