Regional Reit Share Discussion Threads

[hammonkp] 17/8/2018 14:31

Looks like earlier announcement relates to last years M7 acquisitions -

[spectoacc] 17/8/2018 07:49

Not so many years ago, you couldn't give offices away :) Definitely more supply-constrained than they were.

[uapatel] 17/8/2018 07:29

Pleased to see the monies had a home and the deal was obviously organised earlier.

8.7% yield is great. Would be good to see some extra detail I.e occupancy rates and potential for increase, but otherwise looks all positive to me.

[lord gnome] 17/8/2018 07:25

Skyship - if recent sales are anything to go by, the LTV will take care of itself, slowly but surely.

[skyship] 17/8/2018 07:24

Certainly sufficient detail to see that it looks like a good deal, even though I was hoping the might sit on their hand and reduce the LTV toward the 40% target. Still, I can see the attraction of reinvesting £31m south of the border into offices providing 8.7%!

"The portfolio consists of eight offices located in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln. The assets total circa 275,000 sq. ft., let to 24 tenants.

The assets are expected to provide a net income of approximately GBP2.81 million per annum, which equates to a net initial yield of 8.66%."

[spectoacc] 17/8/2018 07:21

Looks a good small purchase, though secondary locations it seems. Was expecting something larger.

[lord gnome] 17/8/2018 07:21

The RGL management clearly deserve some credit. They have had all their ducks lined up for some time.

(Edited)

[deanowls] 17/8/2018 07:18

Well that answers that question. Now if only there was a bit more detail in that RNS.

[deanowls] 15/8/2018 11:32

They can do that on top and f take the shares. A guaranteed divi saving and as it improves hold the shares in treasury if need to raise funds.

[skyship] 15/8/2018 09:17

At this stage in the business cycle I would rather they reduced LTV (as promised) and address the poor void position through rent reductions, tenant incentives and sales, even if in doing so the NAV is marginally impaired.

[fenners66] 15/8/2018 09:05

I would rather they use the money to make more profit and have the market want to take care of those shares itself.

[skyship] 15/8/2018 07:01

Good point - they have loads of cash so make an exceptional share buyback - good idea. Though I suppose a few further months of abnormality doesn't much matter in the long-term scheme of things.

[deanowls] 15/8/2018 03:07

RGL could take the 8 m shares off CIC and increase the nav further.

[sleepy] 14/8/2018 18:31

Sky - my thanks to you and to Adam for clearing this up

I have also just come across this sale brochure for Wardpark from 2016 (when I believe the estate was owned by Regional) which sheds additional light

[skyship] 14/8/2018 17:19

CIC's holding:

31/03/18: 25.418m
20/07/18: 18.235m (4.89%)

Locked in until 24/09/18: 8.776m

Could be held down at this level until Christmas, unless RGL manage to find someone to take them out!

[eeza] 14/8/2018 16:43

Thanks Sky.


CIC's holding seems to be elastic.

[skyship] 14/8/2018 16:35

An encouragingly rapid response from RGL:

========================================
Once again thank you for assistance and bringing the below to our attention.

If I may draw the reader of the Annual Report to the third point on page 35, which notes that there are additional units which do not form part of the main estate holdings, and thus fall outside of the Top 15 holdings. The additional units account for the highlighted difference.

Hope that helps,

Adam
========================================

[sleepy] 13/8/2018 18:50

Thanks Sky

[skyship] 13/8/2018 18:38

eeza - exactly - but to settle any doubts I've emailed the Company to please clarify/confirm...

[eeza] 13/8/2018 18:07

Well, personally, all I'm really interested in is that they have sold a Scottish asset for a very nice premium and enhanced the NAV.

[sleepy] 13/8/2018 17:39

In english - yes. In surveyor speak - not neccessarily!

[eeza] 13/8/2018 17:34

The RNS describes it as:

"completed the sale of multi-let industrial estate Wardpark, Cumbernauld. The estate, acquired in 2013,covers a total of 829,851 sq ft and is located approximately 13 miles north east of Glasgow."

That suggests all of it.

[sleepy] 13/8/2018 17:27

Sky - I have no problem with the statement that RGL owns c0.7m sq ft of the Estate. My issue is why the announcement refers to 829,851 sq ft. If the property they were selling was not wholly owned they would surely have to say so in the announcement

[eeza] 13/8/2018 17:26

70% of 829851 is only 580895.

[skyship] 13/8/2018 17:18

Yes - "The estate, acquired in 2013, covers a total of 829,851 sq ft and is located approximately 13 miles north east of Glasgow." And we owned 70% of it!