Real Estate Investors Share Discussion Threads

[badtime] 20/3/2019 13:04

Not unhappy at results and was happy to buy a few more at recent low

[cwa1] 19/3/2019 18:58

Nice to see tilts, decent show of confidence in his own product.

[tiltonboy] 19/3/2019 18:04

Marcus Daly added 101k to his holding

[trogerswinning] 19/3/2019 16:00

SKYSHIP

A helpful comparison.

Have you ever looked at Circle Property?

They are active asset managers, acquiring stock vacant possession and bringing it back up to spec. Then typically trading it out, at a significant profit/IRR.

[skyship] 19/3/2019 15:23

Sleepy, re Occupancy, or voids under different parlance.

This measurement reflects inbuilt strategy differences:

# HCFT - 100%, ie 0% voids. This really due to their pure investment style rather than refurbishment, as with RGL:

# RGL - deliberately buys into underlet opportunities where they believe they can add value and re-let. This can deliver an improved NAV performance at the cost of a lower EPS figure

# RLE - somewhere in the middle, though tending more to the pure investment model. That said, they are now attempting to be more active with their trumpeted "Residential" ambitions...

[poacher45] 19/3/2019 10:47

Skyship
For once we agree. However with retail property being written down I am happy with the increased dividend and future sales of property being converted to housing. That should be profitable.

[poacher45] 19/3/2019 10:28

Sleepy
Probably like compared to like. Properties sold not now included.

[trogerswinning] 19/3/2019 10:02

Average to poor.

NAV up 0.6%.

Much prefer Circle Property (CRC.L) NAV was up 30%.

[hugepants] 19/3/2019 10:01

Yield is up by 7% for coming year (they've already stated first 3 quarters will be 0.937p for 1st 3 quarters). So on that alone you'd expect a decent share price rise never mind the 25% discount to NAV and positive outlook.

[sleepy] 19/3/2019 09:27

Can anyone explain the story on occupancy (which was shown as 94% in the Dec 17 results)?

[skyship] 19/3/2019 08:39

# NAV disappointing
# Dividend good @ 3.562p & 3.75p prospective
# Occupancy good at 96.1% (92.8%)

Satisfactory...

[tiltonboy] 19/3/2019 07:15

NAV a touch disappointing but perhaps not surprising given market conditions.

Dividend ahead of expectations, and a bullish statement.

Probably not a lot to lift the price much, but generally happy.

[cwa1] 19/3/2019 07:14

Paul Bassi, CEO of Real Estate Investors Plc, commented:

"Our main objectives for the year were to continue to increase shareholder value, refinance unencumbered properties and deploy the funds generated in criteria compliant investment properties, continue our progressive dividend policy, and increase our underlying profit before tax, EPRA earnings per share and net assets per share. All of these objectives have been achieved.

These are a good set of results, showing growth in our underlying profits and dividends underpinned by a portfolio now being valued at GBP224.8 million.

In 2019, we expect to continue to prosper from the popularity of Birmingham and the wider Midlands, as the region's economy benefits from the arrival of HS2, Coventry City of Culture 2021 and Commonwealth Games 2022.

We anticipate seeing off-market opportunities on the back of the current financial and political volatility. We welcome these periods of uncertainty, as they often bring mis-priced assets to the market which, with our local expertise and financial strength, we can move quickly to capitalise on.

Our portfolio is balanced, has the necessary depth for us to continue to generate value through intensive asset management activities and, together with positive tail winds from the substantial investment coming into the region, REI is well-placed to prosper further."

[killing_time] 19/3/2019 07:08

Results out

[skyship] 18/3/2019 16:57

Was that really a slight tick-up to 49p Bid near the close?

[clausentum] 18/3/2019 15:51

From website, no fixed date:
"We look forward to announcing our full year results in March together with our final dividend.”

[killing_time] 18/3/2019 12:32

Yep hope so, final top up this morning.

[tiltonboy] 12/3/2019 18:49

The matched trades have been going on for months.

In effect if you see two trades of 10k a few minutes apart, one is a sell, and one is buy.

In the old days the MM would work a seller during the day, and match it with all the buys. Now they are matching the trades individually.

[skyship] 12/3/2019 16:46

Tilts - can you explain this afternoon's seemingly matched trades?

[skyship] 12/3/2019 13:43

Looks as though these may be on the turn as buying no longer possible @ 49.5p. Might be the last time to average down below 50p ahead of the upcoming Finals!

[tiltonboy] 07/3/2019 18:12

Valid point in regard to industrial. The buyers are matched with a sell order. Not certain how many are out there, but if it is Invesco selling, there are loads more to go. Possibly seeing redemptions and selling anything they can.

Not Invesco anymore but we have seen Woodford selling a number of stocks to meet redemptions.

[skyship] 07/3/2019 17:09

Sleepy - sorry, took it off the website not the Annual Report; so have edited my previous.

Those holdings are as declared at 28 February 2019.

[skyship] 07/3/2019 17:07

PS. Added a few @ 49.5p to average out at 50.44p

At 49.5p the Jun'18 NAV discount = 29.4% and the yield = 7.07%

Notwithstanding my concerns, at this level and on that yield/discount combination, RLE may be the best value propco.

[sleepy] 07/3/2019 17:04

Yes I’m sure that’s what the Annual Report says but I think Invesco have a total of c 25%

[skyship] 07/3/2019 16:55

Tilts - I haven't read the prospectus with the IPO, but presumably that was the strategic objective, so a bit odd if they hadn't being doing just that.

My main criticism I stated earlier, namely that in the sector allocation of the portfolio, the fastest growing sector, Industrial, has been totally ignored. Basically Bassi just called it wrong.

Re the endless supply of stock; can you see what is on the book, or is it iceberg style with every day another 150k available?

Either way, Bassi should be discussing this with the brokers and seeking to place the line into friendly hands.

From the Website as at 28th Feb'19; Major shareholders (3% or over):

Perpetual Income & Growth Investment Trust – 9.99%
J O Hambro Capital Management – 9.93%
Invesco Perpetual UK Strategic Income Fund – 8.14%
M&G Investment Management – 6.81%
Ruffer Absolute Return Fund – 6.38%
PPS Bassi – 5.51%
EFG Harris Allday – 5.04%
CF Ruffer Total Return Fund – 4.67%
Invesco Perpetual UK Equity Pension Fund – 4.64%
Miton Asset Management – 4.37%
Majedie Asset Management – 4.26%
Aberdeen Standard Investments – 3.25%