Real Estate Investors Share Discussion Threads

[spectoacc] 26/10/2023 09:56

"So you beg the question what is the point of RLE except to provide fees for Bond Wolfe and the Directors salaries"

Ever thus with RLE.

[nickrl] 26/10/2023 09:43

They've got several Jun 24 loans to deal with although given drip drip of sales there probably not at the values last reported. 35p would be reasonable premia to todays price but doubt Bassi would pay that.

[hillofwad] 26/10/2023 03:17

Dash to cash.

They are shifting most of the reatil stock at Walsall and Leamington
They also have got Castlegate House Dudley away

Not content to bastrdise the Market Centre Crewe.

They are even selling a ground floor shop in West Plazaa which leaves an untidy rump and devaluing the asset


The portfolio is rapidly heading towards a bitesize £100m of ragtag properties . There is no selective purchasing going on

So you beg the question what is the point of RLE except to provide fees for Bond Wolfe and the Directors salaries

All gearing up for an m all cash offer from the Bassis ? What's the least they can get away with 35p?

[tiltonboy] 23/10/2023 15:22

Kingston House, West Bromwich showing as "under offer"

Looks like they are taking down for it, as it was previously up for £3.375m!

Unit 3 Barracks Road also showing as "under offer"

[spectoacc] 30/9/2023 15:27

Talk in press of Wilko creditors inc landlords getting 4p in the pound.

Re £2m extra interest cost - wouldn't it be nice if £2m was saved by not paying the two in charge such huge amounts (inc pension, benefits etc). Major shareholders shouldn't also require major remuneration IMO.

Hoping Harwood/Mills does something about it eventually, but has had a few misses lately.

Not a holder, but would be good to see.

[nickrl] 30/9/2023 14:49

Some positives from RLE in that they are getting 4.5% on cash unlike the idiots at EPIC who had ten times as much cash sat getting nothing for months. They also provide data on where they have lost rental income very few others do. The bigger issue here is clock is ticking down on the debt and whilst sales are eating away at it 50m ish needs rolling in less than 9mths and given the family silver is being disposed of what margin are they going to have to pay here - 2%+ probably so overall around 7%. That will add 2m+ to interest costs such that divi will need to be cut by 30% and possibly more with disposals still ongoing let alone the loss of Wilko (9th biggest tenant)- that forced them to mention Crewe!! but no need to worry we have national retailers interested in the unit already.

[hillofwad] 25/9/2023 13:14

"To be fair, they've done well to bring LTV from 50% to 35% without destroying the NAV,"
Yes they have. Yet the fact they are continuing in this vein suggests that further deterioration in value and voids are expected .

There are a number of properties in the folio which wouldn't sell without a significant haircut to BV

One can only guess what effect on the value of Crewe with not only the loss of Wilko
buy also the value of the others once they start selling bits piecemeal

Porrfolio Shortlyt to dip under £150m You have to question the whole set up for the size?

Maybe Bassi takes it private at 35p a share

[sleepy] 25/9/2023 12:20

What effect will higher interest rates have on their debt and profits? Suspect it could be (much?) more than 20% off the dividend

[2wild] 25/9/2023 11:43

To be fair, they've done well to bring LTV from 50% to 35% without destroying the NAV, which is actually up 5% to 60P in last 2 years.

55% discount to NAV and 9.1% dividend looks good value despite the risks.

Assume 20% reduction to a 2p div, would still give a yield of 7.2% at current 27.44p buy price.

[hillofwad] 25/9/2023 07:59

So now abandoned any practice of "asset managemnt" or selective purchases

Just a sales feesfest for Bond Wolfe selling down the assets leaving a rump of ageing office buildings in W Brom to be sold off at a asubstantial discount to BV

Most likely buyer being Bassi

I wonder how much he will have to pay for West Plaza ?

[hillofwad] 20/9/2023 12:57

ttps://www.bondwolfe.com/agency/properties/8-parade-leamington-spa-warwickshire-cv32-4dw/

Currently let to Sharps Bedroom Limited on a 5-year lease, expiring 29/07/2023 !!

Looks like the only yardstick for a sale if a price close to currrent book values can be achieved

hxxps://www.bondwolfe.com/agency/properties/120-122-high-street-kings-heath-birmingham-b14-7lg/

They must be well pleased they got shot of this .

[hillofwad] 20/9/2023 12:45

Yes unbelievable all on short leases .Reversion to SFA

It looks like they have chosen those outlers which can be sold freehold. The internal ones problems in apportioning the service charges

1 thing is for sure they wont get the £20m back

[tiltonboy] 19/9/2023 12:31

Looks like the break-up of the Crewe shopping centre has started, with three units up on the BW site!

[propertybubble] 18/9/2023 16:40

Posted in error

[nickrl] 14/9/2023 13:39

@hilofwad not the only left holding a Wilko of course but administrators have managed to off load the decent ones easily!

[hillofwad] 14/9/2023 10:44

Another blow for The Market Centre Crewe with the demise of Wilko They need to get this hole filled quickly.

6 figure rental + unallocated service charge

Classic mistake buying this dog chasing yield .They have no expertise in managing shopping centres


hxxps://crewe.nub.news/news/local-news/hmv-deal-to-save-remaining-wilko-stores-collapses-putting-crewe-branch-at-risk-199351

[hillofwad] 31/7/2023 22:35

Contracted rental income of £12.5 million per annum

That of course is not rent receivable as some of the recent lets there would have been some hefty rent free periods involved.Difficult to establish .


Impossible task to estimate the net income at Crewe because of the capped service charges



For example we do not know if the hotel has actually started paying any rent yet

[meanreverter] 31/7/2023 19:05

The EPRA NTA per share, recorded on page 3 of the latest annual report, is 62.2p (see the reiplc.com website). At today's closing share price of 29.5p, the corresponding discount to NAV is therefore 52.57%.

[graman] 31/7/2023 17:01

Does anyone know what the current Discount to NAV is?

[nickrl] 31/7/2023 15:41

They've got 50m due between Mar-May24 on rates between 2.2-3.2 so could need refi 30-40m depending on sales so more like 6.5-7. Divi has been kept covered despite the ongoing sales but that put it under water. So divi will get cut whilst BoDs continue to take same fees no doubt.

[spectoacc] 31/7/2023 09:51

Too right.

But, the market's bailing them out a little - successfully selling a lot of stuff I'm sure most of us wouldn't touch with a bargepole. Still buyers around, despite higher interest rates.

Can they get that LTV down low enough to mitigate the jump in rates...

[hillofwad] 31/7/2023 09:26

OK

"We have now achieved total sales of £46.55 million from 1 January 2021 to date"

Soumds like the thick end of £500k fees for Bond Wolfe

AFH Private Wealth, with 18 months left on their lease, took out a new lease for 11.5-years at the passing rent of £396,077 per annum (at ERV) with no break, now occupying all 25,000 sq ft at Avon House, Bromsgrove

No doubt that will be sold as should achieve a price over book

"The portfolio is not exposed to large-scale city centre offices, assets that are particularly at risk."

Priceless Just a string of 70/80s old chestnuts in W .Brom instead

[nickrl] 29/7/2023 09:01

@hilofwad share price has seen no pain that most of its peers have experienced although they are selling down the family silver albeit slowly at the moment.

[hillofwad] 29/7/2023 03:40

The total building is 22,175 sq.ft with an ERV of £308,000 pa

Always carries a few voids -so nothing wrong with the deal & perhaps a small book gain

However more inporatntly another decent fee for Bond Wolfe !

They seem to have 1 arm tied behind their back.They pride themselves on adding value but have done very little in that department Just damage limitation