The Local Shopping Reit Share Discussion Threads

[eeza] 16/6/2015 16:33

News here is Never good news.

No news here is Never good news.

ROMFT.

[badtime] 16/6/2015 16:28

Sky topping up again

[tiltonboy] 16/6/2015 14:17

The fact that one of them is New Solera, who appear to have sold 20% of the equity, it looks very interesting. Question is, who bought them and at what price!

[strathroyal] 16/6/2015 13:53

Two large shareholdings apparently sold in the last 2 days, anyone read anything?

[badtime] 12/6/2015 12:48

Wonder where that large one went ..sp a bit icky

[grahamg8] 31/5/2015 08:23

Sold out a year ago for a decent profit but too early for the surge to 38p. Recent weakness getting me close to the buy button, just a bit more to go and I'll be in.

My approach is slightly different than recent posts. With such a highly geared company 72.5% for me the correct place to start is the gross asset figure £84.9m and the gross debt £64.54m This gives an idea of the level of write down that would wipe out value entirely. For me some write down is pretty certain. So how much risk can I accept and how much reward do I need to take that risk? This tells me the share price I am prepared to buy at. Each person will have their own profile and expectations, which is why at any one time there are buyers and sellers around to create a market.

[rohkap] 23/5/2015 22:04

Glad not going mad! I find these unexplained and exceptional costs very annoying but seems to be perennial problem.

[redhill9] 22/5/2015 09:07

My apologies Rohkap, in attempting to answer your query I was looking at the September column instead of the March column. I agree the disparity between the comment and the actual loss at 31 March appears too much to be just sales costs but I can't see anything in the figures to explain the difference.

[rohkap] 21/5/2015 20:42

Nope 2 different figures. Unrealized loss 700k, realised loss 26k. That realised loss should be a gain if props sold at premium

[redhill9] 21/5/2015 19:08

Small point but can someone explaining how selling £2m of property at 15% premium results in small loss? After costs would have expected to see 150k profit at least

Rohkap, It would appear the properties sold were being held at a value lower than actually realised for them, whereas the properties not sold were revalued downwards.

This actually demonstrates what may happen further over the next couple of years if the properties are sold piecemeal - the more attractive properties may go first at perhaps a premium to NAV and the less attractive are left behind until the end as a "rump" and end up being sold at less than NAV. In theory if each property is accurately valued that shouldn't happen, but in real life the values carried in the accounts for each property when it is sold will be shown to be too high or too low to some extent. The hope by shareholders is that, on average at least, the realised value is above the carried value.

[skyship] 21/5/2015 18:32

BT - good plan....looks like quite a few others did too.

Topsy-turvy day for me with these down 7%, but you win some you lose some in this game - AVR that I was posting on yesterday rose 18% - more than cancelling out my LSR decline...

[badtime] 21/5/2015 18:23

Added a few at 29

[skyship] 21/5/2015 18:22

redhill - an excellent synopsis, presumably supported by Tilts - hence his post above. I'm pretty fully committed here already; but am likely to add if they drift.

[rohkap] 21/5/2015 18:15

Small point but can someone explaining how selling £2m of property at 15% premium results in small loss? After costs would have expected to see 150k profit at least

[strathroyal] 21/5/2015 11:50

- Can't see any mention of an interested party in the Interim Statement so presumably this approach was made after 19th Feb.

- LSR sold (a few) properties during the half year at a profit to their balance sheet value yet the overall value of the portflio gets written down.

- Retained earnings £108k after derivatives reduced by £611k so an overall loss for the half year

- New Solera were still adding to their holding in July/Aug 2014, at prices in the high 30s so presumably they won't sell for less.

Overall, can't see the need to sell as I'm in at c32p and would consider buying more if there is any further drift in the share price

[tiltonboy] 21/5/2015 11:31

I'm back on the board for a top-up.

Not overly enamoured by the statement, but I'm confident they will produce an attractive return from here.

More patience required!

[nk104] 21/5/2015 10:37

I think gfrae has it right. Internos are going to spin this out while they can. It's now a question of working out the likely rate of return and seeing if it is worth it

At least the swaps cost drop out next year.

[spittingbarrel] 21/5/2015 10:34

I've just sold 65,000 at prices from 30.25p down to 29.25p, and it wasn't easy to find bids so I haven't helped the share price but I'm out for a small loss now. I just can't wait around for ever for the management to do something so I've taken my loss and hopefully put the money to better use elsewhere. Good luck to all who remain.

[badtime] 21/5/2015 10:29

The share price is talking because i imagine peeps were hoping it would happen sooner.
Patience it would seem ...its going to either happen within say 3 months or much longer

[hindsight] 21/5/2015 10:14

Having brought at 27p and not sold when should have with hindsight, Im very surprised to see it back at 30p when the fog is alot clearer than it was at 27p. How realistic do we think the 40p valuation is ? The yields point to it being realistic

[skyship] 21/5/2015 10:13

"The remaining assets have been marketed and ongoing discussions are taking place with an interested party. In the event that those discussions prove fruitless then we will continue with a sales programme of individual assets or small portfolio sales."

Those talks must have been taking place for some 6months now. Time for Internos to say "Put up - or shut up"; then get on with managing the assets in liquidation as certainly over this recent period they have been sitting on their hands doing nothing very much.

Obviously a block sale is the best outcome; but now that the General Election is out of the way they should give them 30days to Exchange - if not, then end the talks.

[gfrae] 21/5/2015 09:59

So shareholders will eventually receive their cash around July 2018,according to the above timetable. Coincidentally,that is when the minimum payment to Internos of 900,000 p.a. ceases and thereafter they are paid at a rate of 0.7% of assets. Which is likely to be only about £500,000 p.a.or less ,if gross asset by then are approx £75m or less.
It doesn't look like the incentive payment,based on cash returned to shareholders is likely to kick in (5.7% in excess of 36.8 per share,hurdle increasing by 8% p.a. starting July 2013).
A tweek of the incentive agreement might encourage an earlier return !?

[skyship] 21/5/2015 07:46

If those talks don't come to fruition, then we might expect a debate about an earlier H2'16 distribution after the majority of the derivatives expire.