The Local Shopping Reit Share Discussion Threads

[hillofwad] 02/12/2016 07:01

Tilts 28.25p and they have your name on . Ill stick 25k as a taster first thing and hope you manage to squeeze another 10% out of them . Just think plenty of time has now expired , the properties have had a virtual for sale sign above their heads for sometime which would have flushed out any special purchasers including sitting tenants 10% of the properties are empty and suspect that these now are suffering from an extreme haircut form book


The BODS are in a difficult position to answer the question Why havent you sold more ? They cant say we tried but the only way we can shift the rest is to sell at way below book Good news that they have sorted out finance and there is a decent gap beween rental income and finance costs but the whole idea has now been a timely exit which has increasingly drawn out

[tiltonboy] 01/12/2016 22:17

Put them on the SETS board at 27.75p and I will take them off you.

[rcturner2] 01/12/2016 20:59

I know probably an idiot question, but what it the current gross income from the portfolio and what is the current % of properties empty?

[hillofwad] 01/12/2016 19:58

I was hoping to bail out at 3Op but missed that boat Good luck with your investment and hope the whole things unravel out I just think this is going to drag on

[hillofwad] 01/12/2016 19:52

Ill put some on tomorrow first thing!

[tiltonboy] 01/12/2016 18:47

Hillofwad,

Give me a call. I'm trying to buy at the moment.

[hillofwad] 01/12/2016 16:48

The majority of property investment transactions are conducted in a clublike atmosphere Its a field I am involved in and every agent in town has cast their eyes over this portfolio Former employees of LSR have been punting them around If there have been any cherries they have been picked If anybody was interested in any specific proeprty they would pick up the phone to Allsops and tell them to ask their client LSR if an individual proeprty is for sale They are hardly going to say no its not for sale if offered a deal over book Allsops would also have tried to bring someone to the table since the last big sales -thats what they do they arent going to let a potential transaction go begging They will be mindful if Soukop who might have his own team steams in so making hay whilst the sun shines Tempus fugit Grahame has walked off the stage e at the high point That was the big signal for me I would be very surprised if there are any properties left which are markedly above book value plus the leftovers which are a bag of old spanners Only saleable as a joblot if a huge discount is offered if you think that is above 34p fair enough I dont and I have started selling down

[skyship] 01/12/2016 15:37

HoW - you need to read back to get a better idea of what has actually been going on here.

The properties have not "done the rounds" as you say. LSR has quite specifically resisted the individual sale route as it wanted to preserve a size to be marketed as a portfolio similar to that marketed and sold in Aug'13. They nearly did it again, but the buyer withdrew earlier this year.

Personally I hold with the hope, indeed expectation, that the same or a new buyer will return to the frame. But in the meantime we are to see a change in strategy, to be outlined with the Finals post the EGM.

[hillofwad] 01/12/2016 13:08

Lets face it the only method of speeding up sales is to make the pricing more attractive. This will be under book thus impacting on the loan to values ratios
The company has been sitting on death row and the increase in sales hasnt happened dueue to lackof appetite in the market The properties have done the rounds and every man and his dog have cast their eyes over it .Now suffering from deal fatigue

[strathroyal] 01/12/2016 12:56

Don't really see why the share price should fall dramatically as the larger shareholders appear to be supporting the board and I would conclude from that that they intend to stay put.

With Internos committing to selling properties on a speedier basis and using surplus cash to reduce debt (no doubt something of a fluke but with debt at 2%+Libor, one of the lowest rates being paid by any propco!), I'm not sure where DS could go or what he could offer the large shareholders, particularly if a dividend is on the horizon.

[hillofwad] 01/12/2016 11:39

Redhill No but many which were valued a year ago at £250k and have been lying idle for 12 months or more have sold for £125k How are costs likely to be reduced when the ajor elemnt is the management structure

[redhill9] 01/12/2016 11:16

In many towns these have taken 100% haircuts

Do you mean they have sold for £0?

Seriously disappointed that Thal are backing off and I suspect that the share price will indeed drift short term. However, the LSR yield against share price is high and if costs can truly be reduced and kept under control then positive operating cash flow will appeal. We may have to wait a while longer for value to emerge in the share price though - very frustrating.

[hillofwad] 01/12/2016 11:06

The main problem is trying to shift the vacant shops with no income where blight has set in In many towns these have taken 100% haircuts

[hillofwad] 01/12/2016 10:58

It seems that recently it has proved difficult to achieve any offers above book The market hasnt improved but pretty stable for this product Its all down to pricing The fact that they only managed to just cross the line with the recent sales of the tiddlers tends to support that I suspect that in order to start shifting any more stock discounts from book of somewhere around 10% would be required and 30% to attract the portfolio buyers Seems to me Souk has paid top of the door Tend to agree with NTV the share price is going to be under attack

[tiltonboy] 01/12/2016 10:43

I think there will be newsflow which will support the price. I think THAL will end up with a modest profit on their investment.

[ntv] 01/12/2016 10:15

DS is going to take a 25%+ hit to thal balance sheet now
lsr results will be poor and they are now playing games to see when lsr board supporters will break away
how low will it go before the year end as the games start
maybe he is hoping to pick some in the low twenties to make for the buying at 34p
the waiting game commences

[hillofwad] 01/12/2016 08:37

Maybe he has done us all a favour perking things up and removing Grahame Whately from the battle

[skyship] 01/12/2016 08:23

I daresay he'll be snapping at their heels at every opportunity - but first off likely to wait for the imminent Finals and the BoD's promised new pathway. He may well be tempted to comment upon that statement...

[hillofwad] 01/12/2016 07:59

The Directors must be feeling very smug probably slipping over to Claridges to celebrate at our expense

[spectoacc] 01/12/2016 07:33

Thalassa effectively given up, that's a pity:

"Duncan Soukup, Chairman of Thalassa, said:
"Whilst we vigorously maintain our criticism of the performance of the LSR board as we have previously set out, we acknowledge that without the support of fellow LSR shareholders there is no mileage in Thalassa pursuing a course of action which is destined to fail. We are surprised at the support other shareholders have expressed for the current board of LSR, given the paucity of disclosure and yet another failed investment plan, but feel that without their support that there is no point turning a corporate action into a personal crusade. We have no personal issues with Messrs East and Vetch merely the implementation, execution and associated costs of the New Investment Strategy. "

[spectoacc] 30/11/2016 08:32

@gfrae - I'd say they've every right to have a non-exec on the board with that level of shareholding. Appointing eg Chief Exec & Chairman would be entirely another matter.

[gfrae] 30/11/2016 08:30

I can see how having a non exec director on the board representing Thal would benefit Thal but I don't see how it benefits the other 75% of us. Thal just like any other shareholder can make suggestions or offer help without a director.
Though what will Soukup do with his stock if he is not Donald Trump ?

[spectoacc] 29/11/2016 15:52

Phoning you is interesting! LSR could have put this to bed very easily, but now if they lose the vote, they'll thoroughly deserve it.

[centipede] 29/11/2016 15:36

Have to say that I am also swayed by the Thalassa arguments.
It now comes down to who I trust more - the present incumbents who are probably mainly motivated by their own interests (or those of their 'mates'), OR someone who simply wants to get some value out and has interests which are hopefully close to other shareholders.

PS - just been phoned by somebody doing some research for LSR, asking me about how I am planning to vote and why. I was honest with them, that I will definitely go with Thalassa.
Somebody is evidently getting worried, and to my mind, justifiably so.

[spectoacc] 29/11/2016 14:08

Response is out. On the basis of this, I'm no longer backing the board*, I'm switching to Thalassa.

"Statement of Thalassa Holdings Ltd 29 November 2016
The Board of The Local Shopping REIT plc ("the Company" or "LSR") notes the statement released by Thalassa Holdings Ltd ("Thalassa") this morning, including the comments of Thalassa's Chairman Mr Duncan Soukup, in connection with the Circular to shareholders issued by the Company on 22 November 2016.
The Board considers that Thalassa's latest communication adds nothing to the matters set out in the Circular, but merely reinforces the Board's view that Mr Soukup and Thalassa are attempting to gain control of LSR via the back door. To what purpose remains unclear, but the Board do not believe it is likely to be in the interests of LSR's shareholders, other than Thalassa. "


*I don't own any shares in LSR so don't actually get a vote