Regional Reit Share Discussion Threads

[cc2014] 12/9/2023 09:26

Sorry. Wrong way round Dandigirl but makes no difference to my point.

Wtf are they earning only £17k interest on £43m. If they £43m was a day to day average working balance earing say 5%, that would be earning around a million in a half year, not £17,000.

The orders of magnitude are so far out it tells me all I need to know and I would suggest means the whole of the £50m retail bond will need to be rolled and the coupon is going to be just horrible.

The balance sheet has been constructed to make the cash position look as favourable as possible.

[dandigirl] 12/9/2023 09:20

cc: £26m unrestricted.

"At 30 June 2023, the Group's cash and cash equivalent balances amounted to £41.2 million (30 June 2022: £46.2 million; 31 December 2022: £50.1 million), of which £26.0 million (30 June 2022: £43.2 million; 31 December 2022: £37.8 million) was unrestricted cash".

[farrugia] 12/9/2023 09:19

SOHO meaning Triple Point Social Housing Reit PLC? and why do you favour that?

[skinny] 12/9/2023 09:18

I've held PHP since MedicX days (2015 @83p) BBOX since 2013, AEWU since 2018 and a few others.

[spectoacc] 12/9/2023 09:08

A hard time for the economy as rates start to bite, but a lot of UK listed co's earn far more abroad.

As for REITs - I'd favour the largely recession-proof like SUPR (I hold), SOHO (same), perhaps PHP/AGR once it's clear what Labour's plans are (don't hold).

And everything has its price - but judge that price on earnings yield, and earnings going forwards, not on NAV.

[cc2014] 12/9/2023 09:07

hmmm.

The condensed consolidated statement of financial position (what I call the balance sheet and I wish they wouldn't change perfectly good terms)

Shows cash of £43m of which £26m was restricted

However, note 8 shows they are getting £17k interest on the £43m in half a year or interest at a rate of 0.08%


At this point I usually draw a conclusion but in this case I'll leave it. Not much requires to be said.

[skyship] 12/9/2023 09:07

Farrugia - my selections in 3576 above. Interested to read other suggestions.

[farrugia] 12/9/2023 09:04

so which Reits do you favour guys? I feel that if this can't recover then we are in for a very hard time for the UK stock market in general?

[uapatel] 12/9/2023 08:49

Added a further 10K shares on the dip.

[cruelladeville] 12/9/2023 08:34

Don't disagree and another base rate rise looks highly likely now, I think. But overall, I think the doom towards the regional office portfolio is overdone.

[spectoacc] 12/9/2023 08:31

@CDV - this is only the first cut IMO. Unless the sunny uplands of (Labour-inspired) economic growth and rising boats is coming, then offices are swimming against the (rip) tide.

Think I've mixed enough metaphors there.

[cruelladeville] 12/9/2023 08:24

Oops. -7.6% and falling........

[cruelladeville] 12/9/2023 08:23

Cripes down over 5.5%. What would have happened if the results reflected the doomsday scenario sometimes described at RGL?Disappointing but inevitable dividend reduction. In the end RGL is going to turn out OK.I think.

[williamcooper104] 12/9/2023 08:15

If you want a worst REIT I'll swap your RGL for my HOME :)

[cruelladeville] 12/9/2023 07:58

As good as could be expected really, IMO.

[fred177] 12/9/2023 07:51

Sky - may have greater potential for recovery/improvement over long term

[skyship] 12/9/2023 07:42

Hmm - problem with that valuation in my 3574 above is when comparing with peers.

SREI on the same discount and on a secure, covered, 8.16% yield; and that without the 91% exposure to Office! Likewise API & EBOX seem far, far better value.

[fordtin] 12/9/2023 07:27

And there's the lie;


"with the priority remaining to offer an attractive dividend to shareholders."

1.2p is definitely not attractive to shareholders who bought more than 6 months ago.

[skyship] 12/9/2023 07:23

Annualise the 1.2p for 4.8p total means a yield at 44.5p of 10.8% with a discount of 33.5%. Fair value perhaps; some might say good value.

[uapatel] 12/9/2023 07:20

Expected the cut, had 1.25p so marginally more than I was expecting. Not surprised.

LTV 51.9% so not as bad as some were implying it would go (or even breach the 60%.

[spectoacc] 12/9/2023 07:09

There's the first cut.

[cruelladeville] 11/9/2023 10:03

Half year results tomorrow. Hoping for the best.