Real Estate Investors Share Discussion Threads

[spectoacc] 17/1/2020 14:18

Worth re-reading that he thinks they could raise £100m, with barely that in current market capitalisation.

Anyone who wants RLE paper can buy it from the sellers, who themselves aren't going to want to pony up for more paper. So personally I think he's wrong, and worries me he thinks issuing more shares might be a goer.

[tiltonboy] 17/1/2020 14:17

I would like to know who the supportive shareholders are; the two largest have been selling, and we certainly wouldn't support an issue that dilutes NAV.

[skyship] 17/1/2020 14:15

Thinking likewise, a possible concern for RLE shareholders. A pre-emptive deal issuing shares at a discount to NAV a real no-no in my book. Reference PCA 2 yrs ago!

[spectoacc] 17/1/2020 14:04

Hmm. The notion of them raising "£50m-100m" appeals not one little bit. "Our paper is good" eh. Well, maybe it is, if you dilute existing holders.

Raise it at NAV and fine.

[porsche boxster] 17/1/2020 13:37

Property Week today:


Midlands-based Real Estate Investors (REI) is eyeing opportunities to acquire other regional property companies.

Paul Bassi, chief executive of REI, told Property Week that following recent deals for A&J Mucklow and Hansteen, he expected 2020 to be “a year of consolidation”.

“There are companies with a £15m to £30m market value that are wondering what they want to do next,” he said. “Unless they go out and initiate their own mergers, I believe these are the firms that will be swallowed up. 2020 is going to be a year of consolidation and we will be one of those companies leading that.”

Bassi also said that he was already in early-stage talks with potential acquisition targets.

“We have a number of targets and we’ve started some gentle discussions,” Bassi said.

“We are looking at companies that will keep our Midlands focus, but also other regional firms that operate outside London and the South East.

“There’s plenty to choose from, and I expect that in the next six months or so we will be announcing some deals.”

REI has £15m in cash available but Bassi believes the group will be able to raise significantly more from investors.

“We have £15m in the bank, our paper is good, our dividend is good and we’re sensibly geared,” Bassi said.

“We have a very supportive shareholder base and I am confident we could raise £50m to £100m easily enough to support acquisitions.”

REI has a 1.59m sq ft commercial property portfolio comprising 53 assets. Its market value on the London Stock Exchange stands at around £106m.

[spectoacc] 15/1/2020 14:25

"If you can keep your head when all around you are losing theirs,
You've probably misunderstood the severity of the situation".

[playful] 15/1/2020 14:20

You can never have too many

[playful] 15/1/2020 13:09

Indeed and add some more!

[chucko1] 15/1/2020 12:33

If you can keep your head when all around are losing theirs ...

[cwa1] 15/1/2020 11:17

Madness indeed, but given contact with a few fund managers over the years, no more mad than a lot of other things I've been told!

[tiltonboy] 15/1/2020 10:47

It's probably galling for the PAM side to be selling as they have only relatively recently taken the stake. I understand Miton have actually been adding recently, which has caused PAM to sell more.

Call it madness, but there will be internal limits on size of holdings. It is a problem that is close to home for me!

[spectoacc] 15/1/2020 10:14

The "Can't hold anything below a market cap of £100m" is a favourite of mine - RLE about on it. Yes, probably saves a few disasters by stopping out. But generally a recipe to buy high, sell low.

[cc2014] 15/1/2020 09:57

lol. Following every tick was how I got in below 53p.

I agree though. Either it will go to a price I like and I will buy more or it won't.

(PAM/Miton do seem to be making some strange choices)

[spectoacc] 15/1/2020 09:41

Not following every tick would be my advice ;)

[cc2014] 15/1/2020 09:13

Looks to me like PAM/Miton are continuing to sell down their holding.

The buyers at 55p are slowing down and if PAM/Miton want to continue selling they are going to have to accept a far slower rate of selling or drop the price. For the moment they are still shifting a decent number per day so I see no need for them to go below 55p. Whoever is placing these trades at PAM/Miton is not very skilled and anything is possible. It may be that as their holding reduces they feel they can let the remainder go at a higher price not a lower one. Who knows.


I'm a bit conflicted here. I picked up a very decent sized holding at various prices not higher than 53p before the dividend and I would delighted if PAM/Miton stopped selling. On the other hand I wouldn't be adverse to Miton driving down the price so I can pick up some more.


Oh as I write the bid has just gone at 55p. Now what?

[spectoacc] 15/1/2020 09:01

Sellers ;)

But it's arguably on the block now.

[spangle93] 15/1/2020 08:59

Darn - early morning, apologies for merely getting it 100% wrong.

The company seems very positively set up for 2020, the only thing that was giving me indigestion was the seller and the recent rise.

[spectoacc] 15/1/2020 08:53

Was good for 15k earlier ;)

[chucko1] 15/1/2020 08:43

Other way around, 55.00 bid and 55.01 offered. The offer is in seemingly infinite size. The bid is not - it was good for 10k only whereas 20k or more was generally OK previously.

[spangle93] 15/1/2020 08:21

Offer appears to be 55p, bid is 55.01p

[skyship] 13/1/2020 13:40

Premier Miton sell another 380k to dip below 11%

[playful] 10/1/2020 18:27

LIBERUM NOTE:

RLE has confirmed the delivery of good income growth in 2019, with a 4% increase in contracted rent, and high occupancy maintained above 96%. £15m of cash and facilities leaves management positioned to take advantage of opportunities in 2020 as a result of market dislocation, and includes the potential for corporate activity. Additional growth levers exist from permitted development opportunities, as well as the conversion to residential. The shares trade at an attractive 20% discount to CY20E NAV, with a growing and covered dividend yield of 7.2%. BUY