Regional Reit Share Discussion Threads

[eeza] 02/8/2018 07:12

Yes, they got approx 50% of the max they had allowed - 105m.

[spectoacc] 02/8/2018 06:38

Less than they wanted but much more than I expected them to get. Net positive.

[eeza] 01/8/2018 17:25

RNS
£50m x 4.5% Bonds.
Expenses £1m.

[skyship] 26/7/2018 17:29

It's the big trades you need to look out for - such as the 500k down @ 93p today - that was CIC for sure!

[eeza] 25/7/2018 14:53

Lots of small trades, reminiscent of an ST tip.

[nw99] 25/7/2018 13:44

How many CIC left to sell ?

[eeza] 25/7/2018 12:55

Decent volume so far today.
A few more out of CIC's hands.

[hindsight] 25/7/2018 10:47

Yes out of frying pan into fire springs to mind

[fenners66] 25/7/2018 10:28

Ok bought some more

[spectoacc] 25/7/2018 10:08

Lol. But wait till UKIP restart under Bannon's funding, splitting the Tory vote, & Corbyn gets in here. Might be grateful for Scottish exposure. :)

Edit - wee "jimmy" krankie surely

[skyship] 25/7/2018 09:52

Wirral - thnx for posting that link in yr 409 above. It is a really good article on both equity and bond.

As I've suggested before, I would like to see more disposals in Scotland - so really loved this amusing extract:

"The Scottish management are (wisely) intending to divest away from Scotland which is over-represented in the portfolio - ideally it should be underrepresented. The greater distance put between your assets and the virtue signalling Wee Willy Krankie the better."

[davr0s] 25/7/2018 09:04

Got my bond order in - not a difficult decision given I've got cash sitting around atm looking for a home

[spectoacc] 25/7/2018 07:37

Thanks @WirralOwl, there's nothing I'd disagree with in that FII article and it actually writes up the shares v well.

Only comment I'd make is the point that the current weighted avg debt is 3.28%, yet this bond is 4.5% (accepting that it's replacing the more expensive Zeros, potentially, maybe. But why not use the recent disposal proceeds for that).

Some mention of the CIC overhang would have been handy but hopefully that article will encourage others (certainly not me!) to buy the Retail Bond.

[spangle93] 24/7/2018 17:28

I got an email from Hargreaves-Lansdown today, drawing my attention to the bond's launch. They must have one of the biggest client databases of the UK nominee account hosts to which to mailshot it

[wirralowl] 24/7/2018 16:57

Review of the bond issue on Fixed Income Investor:

[skyship] 24/7/2018 16:13

Another chunky 594k goes through at 94.65p...

[skyship] 24/7/2018 13:45

Sp action sideways/down; whereas moving averages indicate an upward move which should turn the share price similarly ere too long!


free stock charts from uk.advfn.com

[skyship] 24/7/2018 13:31

Specto - to have shifted such volume it is surely more likely that the disclosure comes at the end of a prolonged selling period, as permitted by the rules.

[spectoacc] 24/7/2018 13:25

@hindsight - don't let me put you off, I want the retail bond to be a success, & there's many worse bonds out there.

But to me, RGL either thrive (as they have been doing) & continue to make a chunky payout to shareholders. Or they fail (recession? Corbyn? Bad luck? Over-geared into rising interest rates?), in which case whilst the bonds rank ahead of the shareholders, neither may end up with much.

There's undoubtedly a narrow range of outcomes were you'd be far better off in the bonds than the shares. But I don't rate the yield differential as sufficient to justify the risk.

CIC started selling (having been free to sell some for the past 10 months) the day after the publication of the bond prospectus. Presumably it took them a full 24hrs to read it :)

[hindsight] 24/7/2018 11:26

Also swapping the zeros for the bond may save a little interest but does increase the risk of default in a down turn for the equity

[hindsight] 24/7/2018 11:23

Out of interest why do you think the bond issue will be a flop. They seem ok to me and applying for a few. The equity in this does worry me as the gearing is high and the running costs excessive. Any down turn and can see divi evaporating

[tiltonboy] 24/7/2018 10:59

Let them sell a few more first.

[skyship] 24/7/2018 10:17

Specto - thnx for doing the work for us.

RGL really ought to find a new shareholder to take out the CIC rump...Tilts could do it from petty cash, but his main allegiance is of course to RLE 😊

[spectoacc] 24/7/2018 08:54

From memory (haven't looked it up) CIC are restricted by an "every 6 months" clause - not sure if still applies? ie if enough time has passed. Would give the share price a chance to recover before they sold again.

Edit:
"-- The ordinary shares issued to Conygar will be subject to a lock-in of 6-months for the first one-third, 12-months for the second third and 18-months for final third, commencing on the date of completion of the acquisition."

24/03/17 completion, so the final 1/3rd still subject to lock-in. Sooner they're out - and overhang cleared - the better. (They can still sell another c.1.8% of RGL before bumping against the 18m lock-in).

[skyship] 24/7/2018 08:46

I've posted before that it is most likely CIC selling down their holding; and well pleased to see that they have made good progress in doing so.

Sure, still a large tranche to go; but maybe RGL will be able to find another institutional holder to take out the rump. That would clear the way for a recovery back to first target of 100p; then 105p if Markets hold up.

Interesting to note that at 105p the prospective yield on an 8.1p dividend would still be 7.7%!