Rdi Reit P.l.c Share Discussion Threads

[cerrito] 07/9/2020 07:37

Good for them to make such a big disposal at a just 3pc discount to the February valuation.

[grollfam] 22/8/2020 15:11

Marc WAiner retired as a director on the 23rd of January 2020, I am happy that Starwood have bought the stake as they will add value and have expertise in hospitality industry

[cerrito] 22/8/2020 14:55

Trying to get an understanding of what is going on ref RDI and Starwood.
In the 2019 AR, RDI had 2 non exec directors who were both RDI people as well as 4 independent non execs as well as the exec directors and the chairman.
RDI sell out to Starwood and one of the RDI directors(Prinsloo) stands down and is replaced by a Starwood director but the other RDI man (Wainer) stays on the board even though RDI has no shares.
Does anyone understand what is going on? Biggs the question if Wainer is now an independent non exec and why Starwood are happy just to have one director.
PS
I have never had reason to come across Starwood and how they work but my gut feel is that them coming onto the share register is good news.
Is that how you all see it?

[grollfam] 29/6/2020 17:02

Response to announcement by Redefine Properties regarding conditional sale of shareholding





The Board of RDI, the income focused UK Real Estate Investment Trust ("UK-REIT"), notes the announcement from Redefine Properties on the JSE that it has agreed to a conditional sale of its 29.42 per cent shareholding in the Company to controlled affiliates of Starwood Capital Group.



The Board looks forward to engaging with Starwood Capital Group as a shareholder in the Company.

[grollfam] 29/6/2020 16:25

As I said a few hours ago , `cheap.....The shorts will have to cover , and as Starwood only have 29% and will maybe get only get 1 seat on board...They will want to take private & will have to pay up for the remainder of the shares....They bullish on Hotels , & have the expertise, so maybe £1.50 can be achieved in the medium term....

[theprovosts] 29/6/2020 16:00

"to dispose of up to 111 883 113 shares in RDI REIT P.L.C. (“RDI”) being its entire shareholding in RDI, representing 29.42% of the RDI shares in issue (the “RDI Shares”),for an aggregate sale consideration of £106 288 957.35 (representing £0.95 per share)"

But wait, the German issue isnt sorted yet. Lol.

[jh27] 29/6/2020 10:48

Still no “imminent̶1; completion of Hamburg though... maybe this latest move is it...

[grollfam] 29/6/2020 10:42

Still very undervalued ….

[mister md] 29/6/2020 10:25

quite a large move today ?

[nickrl] 15/6/2020 21:52

JH, give Germany is in better shape than we are might be useful if the sale does drag on as long as you suggest as at least thats more certain income.

Also the hotels income is equally shredded currently.

[jh27] 15/6/2020 10:54

There’s been v little volume on the rise from the bottom of 45p to 75-80p that it is now in. There’s nothing in the German press on the Hamburg deal since an article in January where it said that the legal issues could take years to resolve, partly because the site is split between long leasehold and freehold and the council only has an option, which the buyer had challenged the validity of anyway, over the leasehold bit of land and not over the freehold bit. The market is pricing in imminent completion and at the agreed sale price so I guess the “imminent completion” heralded by management in the results call must be correct. It just doesn’t feel as if imminent was the right word for it given it was 5 weeks ago.

The occupancy at the service’s offices have been shredded so it’s a question of how quickly the tenants renew their contracts or they fill the space. You’d think that the displacement caused by lockdown would be good for serviced offices in the medium term and bad for longer leases on traditional office properties with firms wanting the flexibility that serviced offices provide.

[poacher45] 15/6/2020 10:38

On the 20th March U & I made an announcement that salaries and overheads had been cut drastically. On 11th May RDI in the conference call said they were going to cut costs. Still nothing and what about the German deal? Obviously they are suffering with the shopping centres and what about the offices or are people working from home.

[grollfam] 03/6/2020 15:07

The company said at results presentation legal issues Resolved and transfer soon

[jh27] 03/6/2020 14:48

The exercise of the option could cause legal wrangling for years according to the German press in an article from January. No update since though other than the company saying that one or other would complete in due course.

Has it the problem/option now worked itself through and been resolved?

[jh27] 03/6/2020 14:48

The exercise of the option could cause legal wrangling for years according to the German press in an article from January. No update since though other than the company saying that one or other would complete in due course.

Has it the problem/option now worked itself through and been resolved?

[grollfam] 03/6/2020 14:33

JH27 , sorry only saw this now...could not compete 31/12/2019 as City of Hamburg exercised its option in November...Sale should go through any day

[theprovosts] 03/6/2020 14:17

Meanwhile:

"Travelodge proposes new deal to end landlord row"

[jh27] 26/5/2020 22:36

I saw all of that. But if there are two buyers fighting over it then why didn’t one of them complete on 31 Dec as planned? And, post-Covid - and with a severe reduction in rental income at the shopping centre (as RDI suggested was the case in the interims) - are there really two buyers fighting over who gets to pay 91m for the asset when every other retail deal in the world has gone on hold?

[grollfam] 26/5/2020 20:04

Hamburg sale is happening imminently. Was discussed at RDI presentation last Monday...2 qualified buyers, original buyer & Hamburg city who has pre-emptive right, & who has exercised it....Should it not get sold ,which is very remote, as 2 buyers are fighting over it, the income received more than covers the debt....Cannot compare to Hammerson which has been hammered down from over £3.00 to a low of 40p....totally exposed to retail centres & high LTV ...

[jh27] 26/5/2020 12:11

Agreed. But if the Hamburg sale doesn’t happen then they have a triple whammy in that they don’t receive £36m of net cash, still have £40m of borrowings against the asset and a substantial downward revaluation to come on it. Hammerson were similarly “solid” about the pending retail park completion right up to the day that they announced that the buyer had forfeited its deposit rather than go ahead. If you google the Hamburg deal there has been nothing on it since the City of Hamburg exercises its option in November. Not even an explanation of how the option works and why, having exercised, they didn’t complete in December as the original buyer was committed to do. All very strange...

[grollfam] 26/5/2020 11:58

poacher45... with more than £85m in the bank, unmortgaged properties of £40m, a LTV of 41% & £36m nett after tax coming shortly from sale of Bahnhof Altona Center in Hamburg, , they certainly do NOT need a rights issue....

[poacher45] 26/5/2020 10:43

With the price defying gravity I think a rights issue is on the cards.

[jh27] 24/5/2020 20:57

Looking at the posts I think the uncertainty at the mo beyond the obvious Covid stuff is the completion of Hamburg. They seem certain that either the City of Hamburg or the other buyer will complete at the agreed price but the effect of it faint through would not be good for the company to say the least. Worse still the buyer could renegotiate the price. Look at what happened to Hammerson who cheerfully announced the pending completion of their £400m retail park sale only to see the buyer renege on the contract and forfeit its exchange deposit of £20m rather than go ahead Witt the deal.

[cerrito] 19/5/2020 14:50

I have been here since the WICH days and continue here: I need to say I have misread this share.
I listened to the May 11 webcast this morning and they have good info in the appendices. Those of you who have an houyr to spare may want to listen in.
They started with an interesting stat. They had as of May 11 £85m in cash plus £45m in ungeared properties and £36m of sales proceeds to come-I assume includes Hamburg. The sum of this equated to 85 pc of the marcap as of May 11. Of course debt at 28.2.20 was 3x+ the current marcap.
The Q&A included a discussion on the material uncertainty wording in the Going Concern statement and as they say we will see more of this wording.
quote
n light of the current COVID-19 pandemic and the continued uncertainty around the United Kingdom's future trading relationship with the European Union, the Directors have considered severe but plausible downside scenarios in assessing the Group's ability to continue as a going concern. Given the potential negative economic impacts and the uncertainty in respect of the timeline for recovery, in a reasonably possible adverse scenario, a material uncertainty exists which may cast significant doubt over the Group's ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business.
unquote

[theprovosts] 15/5/2020 16:22

Agreed, there had been a very pesky 4k AT seller driving it down, almost looked like margin calls by how they were executed, but nowhere to be seen now. I also like the look of NRR. Lower exposure to Hotels, more on Pubs. Its been equally hit. Longer term this will pass, and banks will be happy waiving covenants (like they are doing in all other industries). Slow waiting game, but huge value sitting on the balance sheet. Mr Market did a great job of forcing out the seller at the lowest possible price.