Regional Reit Share Discussion Threads

[skyship] 12/9/2018 16:02

fenners66 - re yr 568 above on the Aztec West renovation - take a look at p.42 of the superb Interims presentation posted by Sleepy...

[sleepy] 12/9/2018 12:04

Interims Presentation -

[tim1478] 11/9/2018 23:35

Thank you Stewart and HOLTS

[skyship] 11/9/2018 15:41

IC Online updates its RGL Tip:

Shares in Regional REIT (RGL) rose nearly 4 per cent on the morning the office and commercial property landlord delivered a robust first-half performance. Headline profits were boosted by a valuation uplift on the portfolio of £27.9m, up from £7.5m a year earlier, while operating profits were higher still, thanks to a 39 per cent increase in net rental income to £26.9m.

RGL: Today change - 3.46% - Price (GBP) 98.60

Disposals of £60.4m averaged a net initial yield of 4.9 per cent, which contrasts with a net initial yield on acquisitions of 8.4 per cent. Disposal proceeds also helped to finance £40.1m of acquisitions, while £50m was raised through a retail bond. This will more than cover the preference shares that came with assets acquired from Conygar, and which mature in January 2019.

Gross borrowings rose from £376.5m at the end of 2017 to £391.9m, reflecting acquisitions costs and the preference share repayment. However, cash reserves more than doubled to £79.5m, and proceeds from disposals and the valuation uplift saw the loan-to-value ratio fall from 45 per cent to 41.2 per cent, with a target of 40 per cent. Despite an increased proportion of recently acquired assets, occupancy rates by value improved slightly to 85.5 per cent.

Adjusted net asset value is already ahead of house broker Peel Hunt’s previous forecasts for the full year, and is now expected to reach 119p at the year-end, from 106p in 2017.

IC View:
Regional REIT intends to pay off its £65m ICG Longbow debt next year, which will bring the cost of debt down to its lowest level ever at 3.5 per cent. With a sector-leading dividend yield, we remain buyers.

[spectoacc] 11/9/2018 15:22

@eeza - if my auntie had b*llocks.......

[eeza] 11/9/2018 14:00

However, without the CIC overhang the share price would be higher, & the discount narrowed.

[speedsgh] 11/9/2018 13:32

Suspect market is still slightly nervous of the relatively high LTV. Now we are likely in the mature phase of this cycle, reckon market would prefer to see LTV reduce considerably from current level.

Total Accounting Shareholder Return looks quite impressive (32% since IPO; 11% annualised) but the persistent discount to EPRA NAV means that shareholders are not currently experiencing such high returns in full. All fairly meaningless, I know, until one actually sells but hopefully the discount will continue to reduce; it's still 13% even after today's share price jump.

[a0002577] 11/9/2018 12:47

The interim results published today were actually very good. NAV well up

113.6pps (31 Dec 2017: 105.9pps)

and good earnings per share with a promised full year dividend of 8.05 pence

What's not to like?

[stewart64] 11/9/2018 11:42

Skyship...your price prediction yesterday pm is looking spot on. I was not so optimistic, but when a share returns 15% + over the year and the price is still down over 12 months it's hard not to be pessimistic.

[holts] 11/9/2018 09:51

and up to the 24th sept they had to have a third of their original holding left .

[stewart64] 11/9/2018 09:43

Tim... Regional Reit bought CIC property in exchange for RR shares and cash. We believe they (CIC)have got about 18 million shares left. They have been offloading and depressing the price. They are not obliged to sell them.

[tim1478] 11/9/2018 08:39

Hi. I bought yesterday - small amount - purely on the comments on this board. Thank you.

Please could the CIC overhand be clarified? is CIC, Conygar Investment Company PLC and if so do they have a large holding they are obliged to sell?

[harrogate] 11/9/2018 07:42

Thanks a lot - all the reasons I bought!

[skyship] 11/9/2018 07:41

Harrogate - how long is a piece of string?

# There are propcos, mainly the big blue chips, standing at discounts of c35%-40%, such as BLND, HMSO & LAND.

# There are good long-term performers with many supporters such as MKLW standing at NAV

# There are the new "Income" propcos listed in the past 3-4yrs also standing at close to NAV and providing 5%-8% yields

# RGL is one of those but stands at a 15% discount on a yield of 8.4% - this due to the CIC overhang - once cleared the share price should see a good rise; and we enjoy 8%+ whilst we wait!

[harrogate] 11/9/2018 07:22

Hi. I am fairly new to this type of share - picked it to replace cash in my SIPP which pays NIL. What is a "normal" discount to this NAV that you would expect the share price to sit at? Thanks for your help

[skyship] 11/9/2018 07:13

...and of course good gains revealed since 30th June!

Well done Specto...even if you were too conservative
😊

Net Asset Value:

Between 1 January 2018 and 30 June 2018, the EPRA Net Asset Value ("NAV") of the Group rose to GBP426.5m from GBP395.7m as at 31 December 2017, which equates to an increase in diluted NAV of 7.7 pence per share ("pps") to 113.6pps (30 June 2017: 107.3pps; 31 December 2017: 105.9pps). This is after the payment of dividends in the period amounting to 4.30pps.

[killing_time] 11/9/2018 07:08

Nice start to the day. :-)

[spectoacc] 11/9/2018 07:07

I was conservative :)

[noiseboy] 11/9/2018 07:06

My guess is 113.6p

[eeza] 10/9/2018 16:42

Not while CIC has their boot firmly on the throat.

[skyship] 10/9/2018 14:01

Tomorrow - could be some resistance @98.5p; but more likely a run to 100p...

[skyship] 10/9/2018 13:54

Jimmy & Minerve - thnx for your valuable input.

[fenners66] 10/9/2018 13:48

thanks jimmy so if they let it all at the same rent - then above target by maybe £109k.
That valuation of £19.5m would be booking a gain of circa £7.2m which is pretty good.
I am surprised at the low initial cost of the building though if they are spending more on the refurb than the building cost !

[minerve] 10/9/2018 09:49

I am very familiar with the Aztec property. I used to work next door and my partner used to work there too - just across the road. The actual property in question is excellent and I fully understand their decision to take on a large renovation project there. It is a well-known business park right on the M4/M5 junction so has excellent connections to rail via Bristol Parkway and Heathrow isn't too far (about 90 minutes). Local business is supported very well in the area and has strong connections with the university with tech being very strong in the South West and M4 corridor.

[spectoacc] 10/9/2018 09:34

Thanks @jimmyb33. My bet is they'll flog it as soon as fully let.