The Local Shopping Reit Share Discussion Threads

[badtime] 19/2/2015 10:18

Tilts thanks for that input...makes sense...the only disappointment is peoples expectations...there weren't any major negatives in the results from what i can see

[tiltonboy] 19/2/2015 09:49

eeza,

Not yet, but this statement doesn't deter me from adding. Thought we might get a bit of a negative reaction in the price from disappointed followers.

I read it that potential buyers didn't want the debt "stapled" to the deal, and are not proceeding.

Whilst the pace of sales is slow, the company point out that they are having to be selective, in order to make the overall portfolio attractive.

There are 379 properties remaining, and while it would be nice and clean to sell it in one go, I would happily see individual properties sold off at a premia to NAV.

I held Tamar, as I'm sure some of you also did, and we know how that ended!

[redhill9] 19/2/2015 09:49

By not being able to use cash to repay debt, I meant of course other than scheduled repayments.

[badtime] 19/2/2015 09:48

Anyone fancy giving them a ring re the 'project' ..i cant i am busy decorating lol

[redhill9] 19/2/2015 09:42

Having read the announcement through in detail it strikes me that if we hadn't been led to believe they were selling the lot in short time then this would read quite positively and we'd all be saying what an undervalued prospect LSR is.

I took the view last year that if they sold the remaining properties quickly, good, but if they took their time and sold them over a period at NAV then good too. At the moment it seems the latter is more likely.

As Skyship remarks, perhaps they may start paying a dividend. Cash balances held at 31 January of £16.50m, plus the £0.689m sale proceeds since that date is certainly healthy and if they can't use this cash to repay debt (am I right in that point?) and are not looking to do any significant property renovation or development work, and presumably generating net rental cashflow after expenses, then surely a dividend or other distribution is not unlikely.

Slightly disappointed that the block sale hasn't happened yet, but I will continue to hold.

[eeza] 19/2/2015 09:19

Tilts in buying?

[badtime] 19/2/2015 09:02

.....and i added yesterday ..hmmmm

[eeza] 19/2/2015 08:01

totally inept.

Displays - as usual - a complete contempt for s/hlders.

[skyship] 19/2/2015 07:56

Hi Alan - a good summation.

Perhaps they should start paying a dividend again this year...

[alanji] 19/2/2015 07:53

It does look as though Renouvier may be dead in the water although the rns did say

"A number of options are currently in hand for the liquidation of assets, including the disposal of property-owning subsidiaries with stapled debt, smaller portfolio sales and the continuing programme of individual property sales."

but then went on to say:

"We anticipate that sale opportunities are likely to increase as the expiry of the current interest rate swaps, beginning in July 2016, is reflected in reduced funding costs."

I fail to see why swap expiry increases sale opportunities!! It may increase viability as rent is no longer required to cover swap cost. I am happy to hold but they do seem to have lost direction

[skyship] 19/2/2015 07:37

Bizarre - this is all they had to say about sales - absolutely no mention whatsoever of Project Renouvier:
================================

Sales

During the period six properties were sold for an aggregate of GBP1.497 million, a premium of 3.24% to their 30 September 2014 valuation. At the period end contracts had been exchanged for the sale of two further properties at a total price of GBP0.689 million (a premium to 30 September 2014 valuation of 16.58%), the sales of which have since been completed.

[skinny] 19/2/2015 07:06

Highlights

· Annualised rental income from the portfolio at 31 January 2015 of £7.809 million net of head rent payments (gross: £7.878 million);

· 15 vacant units let since 30 September 2014 at a total rent of £106,470 per annum, (0.83% below Market Rent);

· 16 further units under offer as at 31 January 2015, at a combined rental of £152,320 per annum (1.79% above Market Rent);

· Rent reviews completed on 21 units, increasing rental income by £49,033 per annum (11.37% above previous passing rent and 13.08% above Market Rent), and 18 further leases renewed (0.49% above passing rent and 8.42% above Market Rent);

· Six properties sold for £1.497 million, representing a premium of 3.24% to their 30 September 2014 valuation.

Steven Faber, LSR's Executive Director, said:
"We believe that our hands-on and pragmatic management approach, working with agents and tenants to achieve optimal returns from individual properties in relation to local market conditions, remains appropriate in the current climate. At the same time, and in furtherance of the policy adopted by shareholders, we are carrying on with our programme of individual asset sales whilst pursuing opportunities for disposals of portfolios and property-holding subsidiaries."

more....

[badtime] 18/2/2015 14:25

Added a few early doors

[skyship] 18/2/2015 13:37

32.25p Bid....hopefully this move portends good news on the disposal front; either at the 4 March AGM or an RNS before then:


free stock charts from uk.advfn.com

[skinny] 17/2/2015 16:06

Hmmmm - all fairly quiet here - I was just offered 31.88 for some shares, so perhaps things may be stiring.

[tiltonboy] 17/2/2015 15:47

Not me. Still watching and waiting for my top-up.

[skyship] 17/2/2015 15:45

100k taken out @ 32.25p....was that you Tilts; or do we have a new buyer on the scene?

[eeza] 30/1/2015 17:47

Management won't complain. Longer to draw their salaries.

[badtime] 30/1/2015 17:06

Patience seems to sum it up

[stupidboypike] 30/1/2015 15:00

All helpful comments thanks. Think Tiltonboy is spot on. If your timeframe is long then probably a good buy. I'll watch for any further weakness. Thanks all. Best regards SBP

[tiltonboy] 30/1/2015 14:59

eeza.

I agree that there might possible slippage in NAV, hence I have waited until now to dip my toe in the water. I'm sure they will be able to sell some individual properties at or above NAV, but it will take a long time to see it through!

[eeza] 30/1/2015 14:47

"The drift has caused the NAV discount to open to really attractive levels - now at 30%+"

However, they can't sell the properties at the valuation - so NAV must be suspect? Something is only worth what someone will pay for it.

[tiltonboy] 30/1/2015 14:40

I understand thet retail property yields have drifted up over the last few months, and they may not have had an offer that met their valuation. At this stage, I am happy to see them collect the rents, and undertake piecemeal sales at individual valuations which are attractive. Might well be a long process, with patience being required.

[redhill9] 30/1/2015 14:11

Stupidboypike, concern that they sold the good stuff and were left with the dross is understandable, but what they sold last time were two subsidiary companies that owned a number of properties rather than selling a cherry-picked selection from LSR's total properties, so unless LSR had previously structured all the good properties in those sub cos and all the rubbish outside that concern looks unfounded. Even so, undoubtedly it would appear that interest isn't so great this time as last time - Project Minard was done and dusted in super quick time.