Real Estate Investors Share Discussion Threads

[hillofwad] 29/3/2023 11:41

Yes apologies I had written my post before reading the full update on the portfolio
Its a very rare occasion they report on Crewe and good to hear some progress

They did well breaking up the portfolios and they should be able to get rid of most ofthe Leamington shops Nothing wrong with that of course

Likewise the letting on Oldbury to a health company not a Govt Dept As Specto said the enhanced value on Oldbury already accounted for in the portfolio valuation


Crewe


Good news on the Argos unit under offer albeit they still had a couple of years left on the lease

"We have agreed to sell the consented new drive thru land in the rear car park to a well-known fast-food operator and once completed we feel that this will have a very positive effect "

Well they have just said the parking revebue is resilient This scheme of course will reduce the car parking revenue and availability


hxxps://crewe.nub.news/news/local-news/crewe-burger-king-development-under-offer-for-over-ps13-million-159796

Looks like the proposed prelet investment deal is changing to a land sale ? or is it?

"We currently have two vacancies in the indoor mall which occurred after Christmas, but we are working hard to find occupiers, with ongoing interest"

Here is the current availability according to their agents so pleasing to hear it's not all doom and gloom albeit the lettings likeley to be taking place at lower rents,capped service charges and with substantial rent free but neverthless hopefully bottoming out

Crewe Unit 6/7 Market Centre, Crewe, CW12 2NG 2,205 Lease £80,000 AVAILABLE PDF
Crewe Unit 16/17 Market Centre, Crewe, CW1 2NG 2,860 Lease £80,000 AVAILABLE PDF
Crewe Unit 18/19 Market Centre, Crewe, CW1 2NG 3,796 Lease £100,000 AVAILABLE PDF
Crewe Unit 21 Market Centre, Crewe, CW1 2NG 835 Lease £42,500 AVAILABLE PDF
Crewe Unit A Market Centre, Crewe, CW1 2NG 5,596 Lease POA AVAILABLE PDF
Crewe Unit 4/5 Market Centre, Crewe,CW1 2NG 3,945 Lease £85,000 AVAILABLE PDF

[poacher45] 29/3/2023 10:41

Obviously hillofwad cannot read:-

Crewe

The former Argos unit became vacant after the store consolidated to the local Sainsburys and we are now under offer to a national occupier for the ground floor of this unit. Additionally, we are in solicitors' hands for a new lease agreement to Bodycare to take the former Clinton Cards unit with anticipated opening during the summer. We currently have two vacancies in the indoor mall which occurred after Christmas, but we are working hard to find occupiers, with ongoing interest. We have agreed to sell the consented new drive thru land in the rear car park to a well-known fast-food operator and once completed we feel that this will have a very positive effect on the scheme. Parking revenue has been resilient and we have recently renewed our parking contract with an operator which includes brand new parking machines and improved car park signage.

[spectoacc] 28/3/2023 14:37

Thanks @hillof, I've no doubt the Oldbury uplift is in there for these results.

Rare to see a REIT willingly shrink, but RLE have to address that LTV somehow, the debt is increasingly expensive.

Again tho, hats off to them for finding buyers. This is arguably the sweet spot of tenants yet to be in distress, new tenants still available, and the sales market still seeing cash buyers. But I'd acknowledge there's a lot in the price for the downside too.

Not a holder - obvs - but like many it seems FV now it's down here.

[hillofwad] 28/3/2023 08:45

Here I am !

All things considered as expected No surprises and LTV is away from any danger zone

Good news is that the potential letting of the larger of the Oldbury office buildings is still live which will account for approx £400k pa of that income in sols hands Souinds like a govt department lined up It looks as if they also have some of the floors away at Telford

"They must have valued the portfolio conservatively in order to produce these valuation gains"

Values would also have gone up on assets when let
I wonder if the £3.6m portfolio uplift has already factored in the increase in value of Oldbury?

Firther shop disposals in pipeline incliding those at Leamington so maybe another £15m =of assets away this year

With £7m in the bank and further sales you would have thought they might actually buy something rather than just damage limitation

Crewe of course their largest asset never gets a mention despite it being full of voids, Cost of debt is likley ri ramp up on renewals and going to eat into that rental income

[hugepants] 28/3/2023 08:24

They must have valued the portfolio conservatively in order to produce these valuation gains. Balance sheet looks much better now with LTV down to 36%.

[spectoacc] 28/3/2023 08:10

Since when have RLE results not looked tremendous? Putin could go nuclear, bomb the East Midlands, and Bassi would still sound upbeat. ("...Regeneration opportunities....Free demolition work.." etc).

But credit to them for selling so much to Retail - and not just the shares.

[hugepants] 28/3/2023 07:45

Finals results look tremendous all things considered. Where's hillOf?

[nickrl] 11/2/2023 11:17

RLE have 22m of debt to refi in Dec 23 (10m @ 3.2% & 12m @ 2.2%) so they will have to pay north of 5.5% to get that covered i reckon. However, they have been on a selling spree so maybe their plan is to just pay it back and take another leg down on NRI. Problem is the divi is barely covered now.

Also in Mar 24 they have 35m due as well so would make sense to consolidate all three if they can find a lender.

Edit: pays to read the small print in AR or at least post report date section as they managed to get Barclays to extend the 12m by a year so only the 10m due plus what looks like an overdraft of around 8m. The Q3 trading report says they will pay that all back but NRI is continuing to decline however makes sense with cost of money now likely to be more than NIY of whats left.

[chucko1] 27/1/2023 09:01

0.2c?? - being 1/500th of a Euro??

[ny boy] 27/1/2023 05:46

European & UZk property is facing a brutal year ahead, a decade of funny zero money is over and the debts are rising rapidly, loads of defaults, can pick up NPL’s for 0.2c - 0.45c in €

[2wild] 26/1/2023 23:32

They reduce the fourth quarterly dividend as all the property sales reduced income. New 2.5 p target is for this year not last.

[bisiboy] 26/1/2023 22:45

Thanks wonder why 0.4375 for qtr if targeting 2.5 for year no explanation I could see

[chucko1] 25/1/2023 16:41

It was 0.4375pps whereas 0.8125pps in previous quarters (of 2022).

Targeting annual 2.5pps for 2023, being 0.625pps quarterly.

Whether or not you are missing anything, there are various ways of answering that!

[bisiboy] 25/1/2023 16:27

have i missed something or has the dividend been reduced?
received a lot less than january last year

[sleepy] 28/12/2022 12:29

Also the only REIT run by Mr. Bassi and Mr. Daly

[hugepants] 28/12/2022 10:16

RLE must bee the only reit that is still doing significant buybacks AND significant director buying. Doesn't stop the very bearish commentary though!

[nickrl] 23/12/2022 10:00

@hillofwad as i say RLE aren't the only ones being less than transparent ive got outstanding enquiries with PCA over their RNS from yesterday to see if they will fill in the gaps. I suspect not as i guess they would have to put out another RNS if they gave the info to me.

The Rising Sun currently is amongst 40+ pubs JDs trying to offload currently so not sure its going to be worth very much although Tim Martin has a habit of trying to do this to force landlords to give him terms he wants.

[hillofwad] 23/12/2022 04:45

Yet RLE takes opaqueness to a new level leaving out material information They have a whole lexicon of phrases they use to obscure anything remotely negative

"Lease events "Never any mention if rents have been negotiated downwards

"Contracted income! Means either a lengthy rent free period has been agreed or stepped rentals over a period so when it actually becomes fully income producing we will be in a different market

"Price achieved 5% over book value " Bassispeak for devalued in last years accounts to produce gross book profit but after taking off selling costs a loss and much higjerger actual loss over and annove original purchase price

Also in same cases topping up rents on empty space an ongoing liability into the future.

Xmas quiz What would this as an individual investment be worth Wetherspoonss have closed this down Another Bassi dice roll investmnet

hxxps://search.savills.com/property-detail/gb0456l118527

Held on a lease expiring 24th March 2024 at a current rent of £97,750 per annum. The most recent annual service charge is £8,843.

So guaranteed rent for 15 months with reversion to ?? £650k?

[trcml] 15/12/2022 17:46

"Why can't they just be more transparent"

probably they'd say they are just as transparent as other quoted prop cos!

And as for some other quoted prop cos and index-linked rents, how about but no mention of cap and collar?

Combined with selling the properties, one advantage of share buy-backs for RLE is that by shrinking the number of shares in public hands there should be enough in the kitty to be able to take the co private without having to pay outsider shareholders a premium on the share price

[nickrl] 14/12/2022 14:59

@hillowfwad they aren't the only ones to give half the story on rental terms. Ought to be code of conduct on what info should be provided but probably result in many just sticking out statutory reports so guess we have to be grateful for the nuggets offerred.

[hillofwad] 13/12/2022 21:16

Yes getting the old chestnut away Birchfield House is a result.Just Birch now !

The value of Birchfield House must have been written down considerably with vacant possession so a decent upside if they have managed to get a bit of length on the lease

With another floor away at Titan House too.
As usual smoke and mirrors as they use the catchall "contracted income " Why they don't come straight out with it and say they have given lengthy rent free periods
and actually won't be receiving income til late 2023 or 2024 is just so unnecessary

Nor the terms. Why can't they just be more transparent

[spectoacc] 13/12/2022 15:21

Declined an increase?? They should be getting a 50% decrease.

[nickrl] 06/12/2022 09:44

Looks like our big seller is M&G down below 5% from 6.8%