The Local Shopping Reit Share Discussion Threads

[tiltonboy] 30/5/2017 22:01

strath,

I hope they got a good price for the other Coopland shop. I would rather have put that one up again in the future.

I suspect they might put a few in the July round given there is a break then for a few months.

[strathroyal] 30/5/2017 21:04

The 8 sales would appear to include a second Coupland shop from the Allsop sale. The other 2 presumably are private treaty sales.

Are we now left with 240 properties with the Pugh auction to come? If so we should be down to a core of 200 properties in mid-late July as each auction house has an auction that month.

[tiltonboy] 30/5/2017 17:00

Not unexpected given the prices achieved last week. Pugh auctions next week, but nothing to excite there.

[badtime] 30/5/2017 16:28

Sales update on rns release

[tiltonboy] 28/5/2017 11:55

hxxp://acuitus.co.uk/past-auctions/lot-details.aspx?back=/past-auctions/previous-auction.aspx&pid=1894&aid=53

[tiltonboy] 27/5/2017 20:08

strath,

Facts and figures at work, so will report back 0n Monday. This relates to the Project Renouvier schedule from 2014.

[strathroyal] 27/5/2017 11:42

Tilts - Re your post 2253, which was this?

[tiltonboy] 27/5/2017 10:58

Internos have not updated the remaining properties, but I've got a pretty good idea, other than the ones sold by private treaty in April, and a few that sold prior to the first auction.

[hillofwad] 27/5/2017 09:56

I agree 37/38p would be a royal result and worth hanging on for all dependent on whats left in the portfolio.On that note has got a link to what is left

[badtime] 27/5/2017 09:12

5p above the current bid (within the next (15 months) would in my eyes constitute reasonable 'head room' above the current share price ..but then wdik

[hillofwad] 27/5/2017 07:28

My overall impression is that the current management are killing time, undertaking little asset management to add shareholder value.Couldnt even be bothered to supply some floor areas to the auctioneeers on some of the upper parts for the catalogues

Probably a brief monthly selection meeting to decide which properties are heading for the hills ,lunch at Claridges rinse and repeat.

Our main difference is that I believe the sum of the parts is greater than the whole
and if they have to sell some portfolios maybe regionalised of say £10-£15m lots at the death at a discount will be required to put them well under book
So its difficult to see much headroom over and above current share price but good luck and hope to see some more healthy prices appearing at the auctions

[tiltonboy] 26/5/2017 14:53

hills,

Thanks for the response.

It feels as if Internos are accelerating the process given the success so far, so we may end up with what you call the "rump" but the managers call the "core" sooner than anticipated and/or of a smaller size than originally planned.

This is where I see things differently to you, and why I am less bearish. Of course there remains some "dross", but good headway has been made, with little pockets of the smaller stuff actually selling quite well. The mid price assets appear to have generally sold quite well, and given that quite a lot of what remains has a southern orientation, I am quite hopeful on sales.

Key of course is the bigger stuff, including 7 shopping centres. It looks like this will form part of the core portfolio, and I would hope would sell.

[hillofwad] 26/5/2017 14:22

Tilts


When the total portfolio value heads below £40m and / or revenue below £4m pa it doesnt make sense to maintain the existing expensive management apparatus to run the portfolio . The cost is too high

Difficult to guess when that is likely to be I would certainly think that by this time next year the whole thing could be wrapped up

They have done fine at the auctions Always agreed it was the right approach and investors must be perfectly happy with the way things are and the current SP

The auctions this week have done as well as can be expected considering the tragic back ground
Steady as she goes just think that 37p+ would be a very good outcome

[skyship] 26/5/2017 13:49

Tilts - you need to add an ! to that last sentence...

[tiltonboy] 26/5/2017 13:34

hills,

Let's pose these questions to you. What do you consider to be the "rump"? How big will the rump be, and what discount do you think will be required to shift it?

I'm not certain who said there were hidden gems in the portfolio, maybe some better quality assets that might actually fetch a premium.

They have indeed sold a few better quality assets, and they have undoubtedly still got some "dross" to shift, and you point out that the remaining assets are unlikely to be much different than those currently sold.

Only one asset from the top 15 has been sold since the process started, and perhaps you think some of that falls into the dross/rump that will require discounts. If that is the case then we will almost certainly see a softening in the NAV.

[badtime] 26/5/2017 12:54

Tilts thanks for post 2249Another lovely day out

[hillofwad] 26/5/2017 12:06

Settle down lads, I didn't say the rest of the portfolio is filled with dross .I said there are unlikely to be any hidden gems which are likely to greatly exceed book values . Yawning gap between the two positions

In addition, which is a fact that as leases get shorter let to good covenants which might not renew they get less valuable Fact .Check it out with Allsopps

I also know from 2 West end agents who have combed the remainder in their opinion and their dealings with ex Directors feel the same -nothing very exciting

Yes very happy with the first few auctions but after deduction of selling cost only marginally exceeded Nothing wrong with that

More importantly there were a number of properties which should have achieved higher but looking at the state of the leases there was little evidence of any asset management

My point is that the proeprties which remain in the portfolio are unlikely to be much different than those currently being sold

At some point when they sell the rump a hefty discount will be required posters who think that the whole thing will exit out at 40p or anything over 37 might be disappointed IMHO

[hindsight] 26/5/2017 11:47

Though I dont agree with hillofwad, I like to hear both sides of a debate, a market afterall is two views

[tiltonboy] 26/5/2017 11:43

Two properties in the Acuitus auction yesterday, now showing sold post.

600k raised against guide of 515k. Will have to wait until next week to see how they compared to book.

[tiltonboy] 26/5/2017 10:22

SKYSHIP,

hills has been consistently off the mark, so I wouldn't worry about it.

[skyship] 26/5/2017 09:26

HoW - I do wish you would get off your soapbox and delete this thread from your favourites.

Before going however, how do you account for some of the great values achieved just 4 short weeks ago? Tends to disprove your assertions that we are left with dross!

[hillofwad] 26/5/2017 06:57

Badtime

Yes it will but a few posters are labouring under the misunderstanding that there are hidden gems contained in the portfolio
Former Directors who left combed through it

The majority of transactions in the retail property investment sector are undertaken by agents in off market deals ,shakers and movers. Any agent worth their salt would have identified those properties situated in the portfolio which are likely to command a value above book and winkled them out
They dont wait until they are actively marketed

[badtime] 25/5/2017 22:41

Time will tell ..and there seems room for disappointment and yet still pick up a decent return if you have a stake that is

[hillofwad] 25/5/2017 18:39

Lot 48 achieved a fair price with possible reversion to an empty shop . Thomas Cook are reducing their real estate stock so quite risky

This property is a classic case of portfolio properties with diminishing values Property let to good covenants reducing in capital as the end of lease becomes closer

The portfolio will be littered with similar stock .It is apparent from the Winter auctions that very little asset management has taken place to regear leases

You have to apply a decent discount to current NAV