The Local Shopping Reit Share Discussion Threads

[tiltonboy] 12/2/2016 16:58

SKY,

Not me. Was readying myself when the bid went down this morning to put a cheeky bid on the board, but there's a better buyer than me in the market.

[skyship] 12/2/2016 16:33

...and then another 100k bought at 29p up to the close 33minutes thereafter. All by you Tilts?

[skyship] 12/2/2016 15:57

Good performance today. c57k sold this morning, prompting 135k of purchases so far this afternoon, mostly @ 29p...

[tiltonboy] 02/2/2016 12:46

Doesn't look like it in the short-term. Was really hoping to re-cycle the capital return from LXB into LSR as well, but the timing was always going to be an issue.

[badtime] 02/2/2016 12:16

Not sure u r going to get any cheap ones Tilts

[redhill9] 02/2/2016 09:44

Price up again this morning on (apparently) very few trades yesterday/today.

I've bought more this morning at 30.375p as this still looks a good value price to me. Either there will be a sale of the whole portfolio releasing (most of) the discount, or the cash will steadily increase as a proportion of NAV and at some point start to be distributed.

[gfrae] 01/2/2016 18:12

NAV should be over 50p (45p as of last figs. plus rolled up income )by 31st of March 2017,perhaps with prospects looking better and a yield of 3 or 4 pence per share. Maybe more if interest rates go down. Add the possibility of hardening commercial property values as investors search for yield,and NAV should easily be more than 50p.

[skyship] 01/2/2016 16:58

A good rise, yet at 30p the GRY to a perhaps conservative 40p pay-out by 31st Mar'18 is still: 14.25%.

Time to pay up Tilts....though you actually did pretty darned well relieving someone at 27p only a few days ago!

[gfrae] 01/2/2016 16:48

From the end of July LSR will turn into a cash cow, net debt will be approximately £43m the annualised interest charge at 3% will be £1.3m and annual rental income will be nearly £8m thus gross revenues before any revaluations and excluding Internos's charges will be £6.7m.
According to the results posted above on auction sites, prices of commercial properties are hardening.
If prices continue to harden and interest stay this low (looks like they may even be heading lower ) LSR will be paying 2% over LIbor (from memory) as of the end of July.A final return to shareholders nearer 50p seems possible by the middle of next year.
I agree they look very cheap.

[tiltonboy] 01/2/2016 15:28

redhill,

I do not disagree, but I would rather buy them at 27p. If news comes out, I may well pay up.

[tiltonboy] 01/2/2016 15:28

redhill,

I do not disagree, but I would rather buy them at 27p. If news comes out, I may well pay up.

[redhill9] 01/2/2016 14:11

Just been quoted 29.18p Bid

[redhill9] 01/2/2016 14:10

...I'm still trying to buy some cheap ones!

Perhaps the current price is cheap........

[tiltonboy] 01/2/2016 14:02

...no it's not...I'm still trying to buy some cheap ones!

[skyship] 01/2/2016 13:55

No trades declared as yet....but share price up to 29p BID. Excellent...

[redhill9] 31/1/2016 12:18

Thank you langland! I've just done that and it seems to have deleted. Very grateful!

[langland] 31/1/2016 11:29

At the top of the thread near the header you should see 'email alert' then related threads. If you click on 'email alert' you should be able to delete it.

[spob] 28/1/2016 15:10

I bought some more yesterady

didn't see my trade show up

[skyship] 28/1/2016 12:27

Well, well, well....an excellent addition to the ADVFN service.

The volume on the Quote page shows just LSE trades total; but the Trades detail now shows both LSE & ISDX trades.

[redhill9] 28/1/2016 11:09

I've been buying recently in small blocks, including 15k this morning but had to pay 28.44p.

I reckon LSR must be generating cash from ad hoc sales and hopefully are continuing to achieve a minimum of book value when doing so. Operationally I think cashflow should be positive and improving later this year with the revised debt situation. There will be cash outgo on refurbishments pre-sale but they should get that back on the sale.

My only concern is the usual one in this situation that the good properties will all be sold leaving a rump of oddments that nobody wants at anything like book value, but hopefully the enormous discount more than allows for that, and then some.

[badtime] 28/1/2016 10:16

Haven't seen 28 on the bid for a few months

[tiltonboy] 26/1/2016 18:21

I also relieved him of some stock, as I did yesterday.

I wouldnt be surprised to see him pop up again tomorrow.

[spittingbarrel] 26/1/2016 17:55

Yes there was a good sized seller around for most of the day at 27 but it looks as he's been cleared out now. I took a few more at that price.

[skyship] 26/1/2016 17:45

I wrote this piece below as a reply Post on the FIX thread:

Pogue – You are right to intimate that the yield from a liquidating company is dependent upon the quality of the underlying assets. As you will see from the SL thread, there are three variables to determine the Gross Redemption Yield (aka Yield to Maturity): the current sp, the estimated timeline and finally of course – the estimated pay-out – which requires the disposal of those assets.

All of my portfolio holdings stand at high asset discount levels; I believe it is a strategy likely to provide some cushion in the event of a 2008-type meltdown. By and large the portfolio consists of Propcos & Private Equity – some of which are in liquidation mode. My largest holding is that Pref we were discussing earlier – RECP – and no, not ISAable – or at least wasn’t due to the Maturity date being less than 3yrs.

Anyway, of the liquidation plays I believe the best play to be LSR.

A: It offers the highest return as, at the offer price of 27p at which it was available for most of today, it trades at a 35.7% NAV discount (40% EPRA discount).

B: I believe it also to be the most secure. The property valuations look valid, as evidenced by the Aug’14 block sale of 50% of the portfolio in one transaction; and individual sales over the past 6months have been conducted at an average 7% premium. The portfolio equivalent yield is a tempting 9.3%; and there are signs that the traditional private investors are returning to bid in the secondary/tertiary commercial property sector due to the reduced attraction of the Buy-to-Let Market. Attempts at a 2nd block sale failed, or have so far.

So, if they manage to maintain the end Dec’17 liquidation target, then the pay-out should be no later than 31st Mar’18. Interest rate swaps expire in just 6months time; so some may fancy a tilt at that full EPRA NAV.

However, for my spreadsheet purposes I look at an array of outputs; but frankly see no reason why a final 40p pay-out should not be achieved.

Working to that model the Gross Redemption Yield is an extremely attractive 19.8%pa.

I hope that answers your question.