Regional Reit Share Discussion Threads

[cruelladeville] 31/10/2023 07:45

An all too rare good news RNS from RGL this morning. Extract - "Regional REIT Limited (LSE: RGL), the regional office specialist, is pleased to announce that Norfolk House, Birmingham (118,530 sq. ft.) office accommodation is now fully let. An existing tenant, Global Banking School ("GBS") has increased its occupancy, taking the remaining 29,383 sq. ft. of previously vacant Grade A office space on the fourth and fifth floor."

[cc2014] 24/10/2023 15:04

this is what I wrote a month ago Dandigirl. I would also add RGL stated it's intention to refinance the retail bond in April of this year with a "coupon level reflecting the new interest rate environment"

CC201427 Sep '23 - 11:41 - 3737 of 3802 Edit
0 2 1
There is no cash or at least imho no cash.

From memory. About 2/3rds of the cash is restricted, meaning it's being used to help along security and/or the interest rate on debt. Consider it like an offset mortgage if you like.

The other third will be likely half year end window dressing. the cash was there one day before half year end but is spent the next day.


If they had cash they've be buying back the retail bonds in the market now. Plainly they aren't.

[nickrl] 24/10/2023 14:50

@CC2014 at least they lay out their analysis and stress test it for various scenarios but feel they are being too optimistic about what is going to happen with lettings. The acquisition is where this started going wrong imv as it came with too much voids and they've not been able to off load anywhere near the amount of disposals they need to. They are also faced with several more tenants walking at expires/breaks within next 12mths which will lead to another divi cut imv. That said the share price is discounting a pretty savage outcome now but until they have a clear route to getting past the bond redemption its not one for me. Mind you i thought CLI was a potentential alternative but they are at even worst discount to NAV with seemingly no floor. Yes offices are out of fashion but there is clear need for them so an equilibrium will be found in a year or two.

[dandigirl] 24/10/2023 14:27

cc2014's assertion that RGL Group can purchase bonds in the market is correct:

"7.3 The Issuer or any other member of the Group may at any time purchase Bonds in any manner and at any price. Such Bonds may be held, reissued or resold, or at the option of the Issuer, surrendered to any Paying Agent for cancellation".

Interesting.

[cc2014] 24/10/2023 08:27

I re-read the OakBloke piece and concluded it's written in such a way to present the positive to enhance the share value as of course the writer is a holder. Nothing wrong with that of course, not writing up the downsides is natural, it's what a large proportion of posters do here on ADVFN.

Given the depth of analysis he has done and the time it's taken to write the article I am sure he will have looked at the debt properly and will have a good idea of the issues, the likely price at which it will be re-priced and how where they are with the £50m retail bond due next year. I am also sure he will have an idea of how long the voids have been voids already. Not presenting parts of this is up to him.

[fordtin] 23/10/2023 18:23

Sad really. ADVFN charge him/her/they/whatever £8.13(+vat) per month to allow him/her/they/whatever to spend his/her’s/their/whatever’s entire day red thumbing!

I expect at least one of the TV soaps will eventually come up with a storyline to highlight a helpline for red thumb addition.

[chucko1] 23/10/2023 11:37

No, just some saddo(s?) who made bad calls on Woodford stuff. Has/ve been incontinent with annoyance thereafter. More sad than bored? Dunno, but a close call.

[arbus5000] 23/10/2023 10:02

is there a bot in here that votes all posts down?

[cc2014] 23/10/2023 09:42

I skimmed it but he does not mention the impact of the additional interest costs when the debt is renegotiated. Not once.

Indeed he reckons the £50m retail bond could be paid out of cash. Rofl. He really doesn't understand that the £26m cash really isn't cash. And if it was they've be buying the debt back in the market right now at well below par.

[cruelladeville] 23/10/2023 08:54

Four weeks old now, but a rare piece of positive commentary regarding RGL. I have no idea who the bloke is, just thought I'd share it to brighten your day. A little. https://theoakbloke.substack.com/p/hows-it-gonna-rgl-out-of-this-one

[dartboard1] 17/10/2023 21:05

Yes... a good day, just hope the equity still belongs to the shareholders and not the debt holders... need some disposals and lease renewals to come through now....

[cruelladeville] 17/10/2023 19:32

A rare half decent day for the shares. A welcome relief.

[spectoacc] 13/10/2023 06:50

The latter, as shown for some time, IMO.

Does imply there's nothing "inside" re the £50m retail bond - not sure if that's good or bad.

[renewed1] 12/10/2023 19:47

Quire reassuring unless hes a complete idiot!!!

[nickrl] 12/10/2023 15:15

Hes waited for a big drop though before dipping in but reasonable buy.

[skinny] 12/10/2023 15:03

Major shareholders (according to their own website) :-

[redhorse2020] 12/10/2023 15:00

Where does the 12 percent come from? RNS says that as a result of the transaction, the Inglis family has a holding of 2,514,365 Ordinary Shares in the Company representing 0.49% of the available share capital.

[cruelladeville] 12/10/2023 14:10

Yes. Interesting. He's spent another £50,000 on RGL shares. I think he and family already had about 12% of the company. I wonder what he knows that we don't? Yet.

[arbus5000] 12/10/2023 14:08

Inglis bought 180k shares yesterday

[farrugia] 12/10/2023 12:58

'I’ve been shorting much larger more liquid overleveraged US office REITs'

Which ones in particular?

[cruelladeville] 12/10/2023 12:11

Positive news from Picton regarding alternative use of under occupied office building. Regional are hopefully looking to do similar. From Picton RNS "In Cardiff, we have exchanged contracts to sell a partially vacant office building to an experienced PBSA (Purpose-Built Student Accommodation) developer. The transaction is conditional on planning permission, which will be submitted by June 2024. The sale price is dependent on the exact planning consent obtained and in particular upon the number of rooms secured, subject to a collar and cap. In all scenarios the transaction is NAV accretive and we will retain an adjacent small income producing industrial unit and car parking site."

[nickrl] 11/10/2023 09:47

Day to day is still the same lot according to RNS and not clear what there role is other than take a few more quid off the bottom line as its not as if they are into acquisitions but maybe they will hawk all the vacant stuff to some foreign entity looking for a bragin

[cruelladeville] 11/10/2023 08:55

New property investment adviser appointed today. Hope they make a better job of it than the incumbents.

[cruelladeville] 07/10/2023 11:41

Scrip dividend seems highly likely to me for 2024. Company needs to retain as much cash as possible at least until next year the bond is repaid and the next couple of years as leases expire.

[arbus5000] 06/10/2023 20:27

i would accept a scrip dividend.

i think the US reit market is a different kettle of fish - there is less of a floor on land value than there is here. We are a small country thats densley populated.