Regional Reit Share Discussion Threads

[ramellous] 13/7/2018 22:52

Any idea why on a holding of 20k shares of Rgl at a divi of 1.85p I was credited with £296 today?

[spectoacc] 11/7/2018 06:42

To be fair - they've gone very quiet on the bond issue since the roadshow - my guess is "market conditions". And clearly won't want to try to equity-raise again whilst below NAV.

You'd think the £39m disposal would be enough for them to keep busy - unlike many out there, RGL aren't sub-scale, so there's surely no desperate need to grow bigger.

[stewart64] 10/7/2018 17:09

You only normally start Empire building on a rising share price. Taking on debt and new capital issuance on a share price that has fallen heavily shows a complete disregard for shareholders.

[uapatel] 10/7/2018 07:20

Must admit I'm at a loss to understand what is quite going on here. Only have 16K shares here and @ 102.3p average, so not very happy to see the recent decline, especially after the fund raise at 101p.

Holding for the moment as this is a long term share and aimed at diversifying my equity income portfolio.

[spectoacc] 10/7/2018 06:46

Both valid points! Why take on more debt. My theory is that they have another big acquisition planned - but what came out of the bond roadshow? Seems a pricey way to reschedule debt, if that's the intention.

[fenners66] 09/7/2018 21:59

made some sales raised some more cash - but are looking to launch a bond.....why?

[hugepants] 09/7/2018 21:34

It was only 7 months ago they raised £73M at 101p. Has much changed since then?

[speedsgh] 06/7/2018 11:37

Maybe the market is slightly nervous of the relatively high (44%) LTV at this stage in the cycle, hence the discount?

[hugepants] 06/7/2018 11:27

"The sold industrial portfolio comprised of 15 industrial property assets, 54 units, and 42 tenants amounting to 610,620 sq ft.
The sale price represents an uplift of 24.1% against the 31 December 2017 valuation"


I wonder if this is a one off or if the entire portfolio is undervalued to the same extent!

[eeza] 05/7/2018 16:54

For my sins.

Doubled my holding shortly before the close @ 94.40p.

[eeza] 05/7/2018 12:49

Always a large seller in the background pulling the offer down.

[stewart64] 05/7/2018 12:34

Spread narrowed in both directions as per usual. Always feels like the tail is wagging the dog with this one, especially as falls follow solid blue trading.

[eeza] 05/7/2018 08:42

They always catch a few early on. 31k up to now this morning.

[stewart64] 05/7/2018 08:27

Don't understand why the Market sets such a large spread every morning on this one. It's like the brokers decide to shut up shop on this share because traders/ investors aren't going to bite either way at 95.7/ 94.5 they will await the narrowing.

[spectoacc] 02/7/2018 15:32

Bought a 3rd or 4th tranche myself today - RGL have impressed me thus far (through their actions if not their s/p), with only this slightly strange bond issue an unknown. Good luck holders.

[2wild] 02/7/2018 15:10

Just got some more at 95.0p. Now my largest share holding.

[2wild] 02/7/2018 11:30

By my calc this sale should increase NAVps by 1.3p. Bank debt is currently at 3.8% (including hedging costs) with weighted average maturity of 5.5 years. As long as they keep any bond issue below 4% or pull it, the outlook look even better. Have today topped up at 95.656p giving a yeild of 8.333% after dealing costs.

[holts] 02/7/2018 08:46

Will be interested to see what bond they may come up with .

[spectoacc] 02/7/2018 07:23

Agreed, a cracking deal:


"Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces it has exchanged and completed on the disposal of an industrial property portfolio for GBP39.1m. This reflects a net initial yield of 6.9%.

The sold industrial portfolio comprised of 15 industrial property assets, 54 units, and 42 tenants amounting to 610,620 sq ft.

The sale price represents an uplift of 24.1% against the 31 December 2017 valuation.

Over the ownership of the portfolio, several asset management initiatives have been instigated which have improved occupancy rates and rental income such as a series of renovations, and the subdivision of some of the larger units.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager commented: "This disposal is a further example of Regional REIT's opportunistic approach. The current investor demand for industrial assets provides us with the opportunity to realise returns at a significant premium to the property valuation, and recycle capital into other assets where we can apply our active asset management strategies."

[skyship] 02/7/2018 07:09

£39.1m of Industrial assets sold at …"an uplift of 24.1% against the 31 December 2017 valuation."

Looks like a good deal with that yield at just 6.9%.

[fenners66] 26/6/2018 07:20

So the £14m rolled over to a couple of % better

[solarno lopez] 21/6/2018 07:48

Another couple of good points my Lord

[lord gnome] 21/6/2018 07:46

If they are not planning to rollover then perhaps they are looking for a lot more than £40 millions. Interesting that the Glasgow sale is almost half of the value of the ZDPs and on a similar yield / cost. A big deal might just be in the offing, or alternatively they could just be covering a possible need for cash redemption .

[solarno lopez] 21/6/2018 07:35

Good spot Skyship and yes a good idea to rollover

[skyship] 21/6/2018 07:25

The ZDPs redeem in c6months time at a cost of £40m; so perhaps an additional reason for the proposed bond issue. Surely more sensible just to offer a rollover!

===========================================================================

On 10 January 2014, the Company issued 30,000,000 ZDP Shares at 100 pence per share. The ZDP Shares have an entitlement to receive a fixed cash amount on the maturity date of 9 January 2019, but do not receive any dividends or income distributions. Additional capital accrues to the ZDP Shares on a daily basis at a rate equivalent to 6.5% per annum post acquisition, 5.5% per annum pre-acquisition, resulting in a final capital entitlement of 132.9 pence per share. The ZDP Shares were listed on the London Stock Exchange on 10 January 2014.