Real Estate Investors Share Discussion Threads

[nickrl] 23/9/2024 07:27

HY results suggest to me that covering the reduced dividend wont be possible as finance costs up a fair bit now hedges have run off so just as well they've been able to reduce the debt.

Better value elsewhere at this share price

[nico115] 27/6/2024 08:29

I think you're thinking too much about it It basically means management think they can sell the co for a low more than 37p !I think we will get 50p which will be a nice return .

[meanreverter] 27/6/2024 05:44

My first thought is that the directors' purchase of shares to the value of ~£130k is more than a gesture. A cut in the dividend would surely knock the share price. If the directors thought that likely, they would have waited to buy in at a more favourable level.

The contrary, and more convoluted, view is that they reckoned a forthcoming dividend cut to be already in the price. When it happens, the market would, if anything, rebound with relief that the awaited boot had dropped; so better to buy now.

The second view demands a lot of sophistication in both the market and the directors, and I'm leaning to the first one.

[nickrl] 26/6/2024 21:18

Bassi (107k) and Daly (250k) both topped up

[nickrl] 23/5/2024 08:27

Pre AGM trading update confirms a few more disposals made and a bit more debt paid off. They also have some positive lettings update and vacancy rate reducing. The divi is well uncovered now but Bassi says this

"In a challenging market we are pleased to report the ongoing lettings progress across our portfolio, which will maximise our rental income and occupancy levels, supporting our ongoing dividend commitment"

which i guess implies they wont change it.

[nickrl] 26/4/2024 17:21

Wonder what they will have to say about future dividends here at AGM on 23rd May needs to be culled by a third to keep it covered. In short term disposal will go on debt reduction i presume.

[hillofwad] 28/3/2024 15:20

The strategy seems to be anything which can get close to book is out of the door

The problem with selling off bits in somwhere like Crewe are nd those empty units left Somebody is going to want a heavy discount when it comes to the rump

I would be surpised if 40p+ was on the table today by a bidder

[nickrl] 27/3/2024 16:48

Another candidate for CREI after API told them where to go

[nico115] 27/3/2024 15:31

Not with nav at 55pShareholders won't allow that .40 to 45p maybe . I'm sure we will sell out to a bidder soon ..that's my guess . Won't be below 40p or we might as well sell piece meal .I'm long small at 32p

[hillofwad] 27/3/2024 02:21

Plenty of sales on and it looks like they might be getting the Oldbury office away

Once the portfolio starts dripping below £125m there is going to be a lot of dross left as they carve any sale out of anything

At some stage they will put the entire portfilo management in the hands of Bond Wolfe

Just sounds to me a continuing feesfest for Bond Wolfe and that at some stage Bassi will take the rump of the portfolio over at 35/37p per share & everyone goes home happy

[nickrl] 26/3/2024 23:06

Some positives here as the sales they've made have been used to drive down debt which was necessary as all the loans have lost any hedging so average IR now over 6%. They've also reduced admin costs commensurate with lower portfolio value. Even mention Crewe as one of the big voids!
Dividend looks uncertain from here as they need disposals to get bank debt down further but at least all remaining facilities been extended into 2025.

[tiltonboy] 15/2/2024 18:00

hxxps://www.persimmonhomes.com/news/plans-to-bring-new-homes-to-tredegar-clears-first-hurdle

[sydney675] 14/2/2024 12:08

I guess the question is what the potential upside is of holding through the divestment process versus cashing out now and redeploying funds to other opportunities.

How are people thinking about that?

[nico115] 12/2/2024 18:43

Depends if you think it will take 3 years as to the Rns stating it could take that long to divest .

[tiltonboy] 12/2/2024 17:09

The Quadrant, Redditch now up on Bond Wolfe site in its component parts

[sydney675] 12/2/2024 16:13

So if I’m up c. 10% on RLE, would you cash out now or hold on through the wind-down?

[spectoacc] 29/1/2024 08:53

@meanreverter - suspect anyone not reading my posts on here's first thought would be "How much were they paying themselves??".

When you look at base salary (total cost to co inc NI) & bonus scheme - my God. Compare that to market cap.

Definitely the right thing to wind up sub-scale RLE. Difficult to see it as worth chasing if the money's going to be coming back over an uncertain 3 years tho.

[nickrl] 29/1/2024 08:50

RLE advise in todays trading update

"Given the ongoing substantial discount between the share price and NAV, combined with a lack of liquidity in its shares, the Board has concluded that it will conduct an orderly strategic sale of the Company's portfolio over the next 3 years with the objective of maximising the return of capital to shareholders (the "Disposal Strategy"). To achieve this outcome, assets will be sold individually, as smaller portfolios or as a whole portfolio sale, with the initial priority to repay the Company's debt"

and then you've got this

"To support the Disposal Strategy and the return of capital to shareholders, the Company is implementing a new Shorter Term Incentive Plan ("STIP"). The STIP will replace the existing Long Term Incentive Plan ("LTIP"), help to retain Paul Bassi, Chief Executive Officer and Marcus Daly, Finance Director (the "Executives"), and the wider management team and incentivise them to achieve an orderly and timely disposal of the Company's assets to maximise the capital return to shareholders"

There is upside as Bassis/Daly taking a paycut and previous LTIP awards reduced or cancelled. The STIP gives them 10% of any profit over the the valuation at 31/12/23 if they sell with 12mths 7.5% if it takes longer.

Hardly a surprise they dont cover the divi now and with the looming refi they would surely have to cut divi.

[meanreverter] 29/1/2024 08:48

My first impression of the sell-off plan, with the accompanying revision of the management's remuneration structure, is that the board has been reading the grumbles of investors posting on this BB. Even so, the new payoff terms for the directors seem more generous than some of us would have liked.

[hillofwad] 23/1/2024 06:13

To be fair they have been whittling it down below 40% so you would have thought they would be in a relatively good position on financing a debt c £60m but maybe not if they are breaking up the Market Centre Crewe !

Portfolio heading down below £150m I wonder at what level it becomes easily manageable for Bhasi to have a pop

[nickrl] 22/1/2024 19:26

@hilofwad they do have debt cliff looming so sales will go imv

[hillofwad] 22/1/2024 18:28

If it doesn't go private maybe a merger with someone like Palace but then it comes down to a question of control and the role of Bond Wolfe

The portfolio really isn't very exciting I think Bhasi os just slimming it down to size where he can strike confortably

Maybe there is a 20% drink in it

[tiltonboy] 21/1/2024 17:19

Having Christopher Mills on the share register is a help