Real Estate Investors Share Discussion Threads

[skyship] 23/8/2018 07:52

Indeed - The PRU @ 5.6% versus undeclared it would seem. Sensible move!

[ntv] 23/8/2018 06:45

prudential new large II

[ntv] 21/8/2018 16:46

still looking good for 61/62p area now

[ntv] 21/8/2018 16:45

moved up recently and spread has closed as well so making it more interesting
regretting being a bit slow in auction at 54p
must buy some shares in Hindsight PLC or maybe Inside Trading PLC

[skyship] 21/8/2018 16:29

57p-58p near the close - nice move - and a couple of large trades.

[sleepy] 13/8/2018 20:17

eeza, mushypeas - thank you

[mushypeas] 13/8/2018 19:49

Paul Bassi was the founder and 65% equity owner of Bonde Wolfe.

It caught my attention when in March 2016 RLE brought West Plaza for £8m from Bonde Wolfe, where they still retain their offices.

[eeza] 13/8/2018 15:52

Bond Wolfe's website gives:


"The Bond Wolfe Partnership was established in 1983 and its founding partners continue to be actively involved and remain committed to growing the business.

Our core activity has always been focused around West Bromwich town centre and the Black Country where we are undoubtedly recognised as the major commercial property advisors, specialising in sales, lettings, acquisitions, investments, development sites, and all aspects of property management.

Our property investment companies have a diverse regional property portfolio of shops, offices, residential and care homes."

[sleepy] 13/8/2018 15:43

Last annual report says Mr Bassi is Non-executive Chairman of Bond Wolfe. Anyone know the company that owns Bond Wolfe?

[skyship] 13/8/2018 12:10

Winsome - thnx for that - 6% sounds far better - will take another look...I see the IC refers to occupancy @ 94%.

Sorry all - I think without checking I confused with the stat at RGL.

Apologies to Paul Bassi!

[winsome] 13/8/2018 10:40

Skyship, you sure about that 15% void figure? Last set of results put it at 6%.

I've held for 4 years now and watched the share price bounce between 52p and 70p. I will top up if they dip below 53p again as the yield is now excellent and discount to Nav could eventually attract a takeover/buy out once Brexit is out of the way. Either way - seems like a solid long term income holding to keep tucked away

[skyship] 12/8/2018 19:22

mushy - NAV at Dec'17 was 68.9p. So an increase to 70.8p at the Interim stage would
arise from a 2.8% gain. Perhaps a tad low considering the PCTN & SREI performance mentioned in my 600 above.

It really is all about filling those voids which I recall are at a very high 15%. Far too high; and Bassi needs to act on that. If a tenant can't be found, then slash rents, offer tenant incentives, risk a book loss and sell. Do something whilst the Market is in his favour...

[mushypeas] 12/8/2018 15:21

Merely based on projecting my compound N.A.V. total returns for the last 5+ years I had pencilled in a year end N.A.V. value of 70.5p.

My nearest and direct comparitor to RLE is Town Centre Securities (TOWN),a Leeds and Manchester centric company of similar size, which I have held for a similar time frame.

N.A.V. total returns at TOWN have been around 2% per annum better, possibly due to the higher gearing, but the current discount lags at around 25%, again possibly due to the higher gearing. In an April note Edison gave a projected total increase for the N.A.V. + dividend return for the year to end of June 2018 of 10%.

Projecting this figure accross to RLE would sugest an N.A.V figure of 70.8p at the half year stage - all very crude I know.

Page 16 of the note gave a quick view of relative discounts in the sector in April.

hxxps://s3-eu-west-1.amazonaws.com/parallax-expose-laravel-uploads/tcs-plc/files/a4cfa08435_2018-04-19-11-04-34.pdf

RLE results due around 19th of September.
TOWN results due around 26th of September.

[skyship] 10/8/2018 18:25

Hmm...."75p at the end of 2018"

Liberum's last f/c, or at least the one the IC referred to in April, stated an end yr NAV of just 71.4p!

Now, I suspect that will have been uprated; and perhaps anyone here with access to Liberum research could confirm as much; but 75p at the yr end is a bold f/c.

That said, a 3.75% gain at the half year would deliver 71.48p. That 3.75% should be highly achievable; after all SREI managed 3.9% and PCTN managed 3.6%.

So with RLE:

# having a higher LTV
# in the eye of the Midlands growth
# and with a portfolio burdened with high voids

there is the potential (with successful active management) to do even better.

However you look at it though, that 75p still looks too bold. A misprint perhaps!

[mushypeas] 10/8/2018 16:57

Greenwood has been a notifiable shareholder and plugger of RLE since 2013. Having made substantive gains in Berlin property over a number of years, to date the midas touch has not extended to Birmingham.

This from the Milton 2016 half year report:-

Detractors

The only notable faller was Real Estate Investors which is a Birmingham property specialist. The West Midlands economy has a bias towards high-end manufacturing much of which is destined for export. Therefore, the region has enjoyed a real shot in the arm post sterling’s devaluation. We believe that the market is yet to recognise how progressive the trust’s dividend policy will be. Whilst we do not expect any improvement in sentiment towards the property sector given the background of rising rates, we believe that once investors recognise the attractive flow of dividends from Real Estate Investors, the shares will re-rate.

One can only hope.

[epo001] 10/8/2018 16:06

That article is BTW

[skyship] 10/8/2018 15:30

Indeed - one of three trusts recommended by Nick Greenwood of Miton Global Opps.

Won't post the whole of the short piece; but this is an extract:

"Shares in the trust, which owns 1.5 million square feet of commercial property, trade at 53p compared with market forecasts for a net asset value (NAV – the underlying portfolio’s value) of 75p at the end of 2018. It’s also expected to pay a dividend of 3.6p."

Wonder where he's getting those forecasts from - the NAV in particular seems rather ahead of events...

[nrholland] 10/8/2018 15:09

New addition to my portfolio today following reference in MoneyWeek. This, a read of last month's trading update and a look at the price chart along with the NAV and yield is enough for me to dive in! Good luck all!

[killing_time] 10/8/2018 14:53

Hi epo001, my divi was payed on time its just that they seem to take along time reinvesting it back in. One reason is because they take monthly fees for the sipp out of the divi payments before lumping everyone's divi's together before buying more shares. Still not happened yet, thanks KT.

[petewy] 10/8/2018 10:21

My divi was paid in on time II(TDW)

[epo001] 10/8/2018 09:36

killing_time, Iweb had to be prodded into paying the divi into my ISA account, it had got 'stuck' they said, perhaps HL are having the same issue.

[killing_time] 09/8/2018 15:41

Lol, this is typical, the share price has been dragging along the bottom for ages then just before the dividend is reinvested the price goes shooting up.

Don't understand why HL are taking so long to reinvest the dividend. :-(

[badtime] 09/8/2018 15:15

Tilts must have had a search down the back of his sofa

[skyship] 09/8/2018 15:01

Some chunky business being put through at 54p today...

[sleepy] 08/8/2018 17:28

You’re welcome! I do have some better news for you - the combined pay of Mr Bassi and Mr Daly last year was under £2 million!