Real Estate Investors Share Discussion Threads

[skyship] 16/9/2019 20:22

checkers2 - sorry, saw yr message elsewhere and forgot to reply. Will do so via Secure Message tomorrow...

[hugepants] 16/9/2019 17:58

Why can you get a 7% yield on a property REIT (that's also on a 20%+ discount to NAV) when you are only getting 1% from a bank account? Some REITs yielding even more.
Does not make much sense.

[cwa1] 16/9/2019 17:56

Directors Dealing

Real Estate Investors Plc (AIM: RLE), the London Stock Exchange listed Real Estate Investment Trust (REIT) with a portfolio of 1.53 million sq ft of commercial property in the Midlands property market across all sectors, announces that it has been notified that today, John Crabtree, Chairman of the Company, bought 45,901 Ordinary Shares at a price of 53.9p per share. Following this transaction Mr Crabtree holds 272,567 Ordinary Shares, representing 0.15 per cent of the Company's issued share capital.

[checkers2] 16/9/2019 17:24

Skyship hello, know that you quite an expert on ITs so I wondered if I could ask you your opinion on JP Morgan's new trust out soon - JARA JPMORGAN GLOBAL CORE REAL ASSETS LIMITED.

I'm thinking of subscribing however notice that many ITs trade at a big discount to NAV.

However I notice the premium that the 3i infrastrucure is trading on and its robust performance since ipo. Do you think this would be worth subscribing for or is it better buy in the market at a discount to NAV after IPo?

[cordwainer] 16/9/2019 14:46

Skyship - comparing with other property shares I would say debt cost is average rather than good. Agreed all else, with share price about par with sector but dividend yield better.

[badtime] 16/9/2019 11:27

Sp up a couple since

[skyship] 16/9/2019 08:22

LTV - 39.7%...a little high
Debt Cost - 3.7%...good
NAV - Dn. 0.7% @ 68.8p...slightly better than I expected

Sp looks about right IMO

[hugepants] 16/9/2019 07:29

Agreed. Slight reduction in NAV due to retail but the other numbers look good



"Our portfolio valuation is £221.1 million (FY 2018: £224.8 million) down 0.95%, due to a £2.8 million reduction in our retail valuations, and the sale of Metro Court for £2.1 million in March 2019. The overall reduction was offset by asset management activity and an increase in valuation of £0.77 million to £92.42 million in our office portfolio, a rise of 0.8%. Offices remain our largest property class (39.2%), and here we have seen consistent renewals and strong occupier demand, coupled with gradual rising rents and valuations.

We expect the value of our retail assets will recover, once the marketplace acknowledges the differentials between our convenience and neighbourhood retail ownership (prime secondary) and the troubled shopping centres/out of town retail which we do not own."

[winsome] 16/9/2019 07:23

Nice, solid set of interims.

[skyship] 06/9/2019 09:40

Interims were 17th September last year...so not long for an NAV update.

[badtime] 16/8/2019 12:22

Much lower and I might buy a few more

[epo001] 15/8/2019 11:56

Poor liquidity alert! I tried selling 16000 shares this morning and no one would quote me. Placed a limit sell at the current price (54p) and it got stuck, on querying the broker they said they had sold sold 3000 (normal market size) and the price then seems to have been dropped to 53.5p to avoid taking any more. I may have to sell in small chunks to get out.

[rcturner2] 30/7/2019 11:04

Thanks Tilton, I have bought in today.

[tiltonboy] 29/7/2019 15:37

67.9p at last count

[rcturner2] 29/7/2019 14:45

What's the current NAV?

[sleepy] 21/7/2019 21:41

Bassi’s book out on Wednesday. Presume shareholders will enjoy reading about all he has done for them

[badtime] 15/7/2019 22:57

Yep I know :)

[skyship] 10/7/2019 21:31

BT - I think you are well aware I sold out at 56p some 9months ago. Traded a few again from c50p in Mar/Apr; took the c8% turn then decided not to buy back in as not a bull of the portfolio.

[badtime] 10/7/2019 20:21

I'm surprised Skyship isn't holding some

[cwa1] 10/7/2019 15:10

Gentle price improvement, so far...

[tiltonboy] 08/7/2019 10:11

A 6.8% yield (and growing) pays for you to be patient.

The discount to NAV is a secondary issue for me.

[petewy] 08/7/2019 09:50

Quite bullish, I'd say.

[cwa1] 08/7/2019 08:07

Is it my imagination, or is that a pretty solid-borderline bullish-update from RLE?

[clausentum] 03/7/2019 18:15

Investment Trust Insider comment:
In the past five years the trust’s net asset value (NAV) has grown 49.4%, beating the 40.9% average of 15 UK commercial property companies tracked by Numis Securities. However, shareholder returns have been far less, in part because the stock de-rated after the company undertook a series of dilutive share issues below NAV up to 2015, with Brexit uncertainty more recently discouraging investors further.

As a result, the five-year shareholder return, including dividends, has been 32%, below the peer group average of 44.9%. This reflects the wide discount of 21% below NAV at which the shares trade.

Greenwood, who holds 4.5% of his trust in RLE, believes this is unjustified. ‘The West Midlands economy which is largely high-end manufacturing has enjoyed a shot in the arm as the result of sterling’s devaluation. The weaker pound has made locally produced goods more competitive on the world stage.’

However, this isn’t recognised by investors who are preoccupied with the threat to the City office market from Brexit and mark down property investment companies accordingly. If the situation persists, Greenwood says Bassi and his team might try to take RLE private which should result in an offer to shareholders closer to NAV.

[clausentum] 26/6/2019 16:04

Invesco from 21.72% to 20.97%, slow progress!