Regional Reit Share Discussion Threads

[deanowls] 20/2/2019 15:41

Rgl or artl?

[tiltonboy] 20/2/2019 11:17

I've got them in the office tomorrow, so happy to ask questions you might want to raise.

[hpcg] 20/2/2019 09:54

I sold out of ARTL in the tender issue back in the Autumn. The discount is attractive, but never closed. More to the point the dividend never changed, but not for the lack of success. Share buy backs will be limited in number because of some large shareholders. If I recall correctly buybacks are forever on the edge of forcing a bid. It thus makes one very much a minority holder in an illiquid stock, which I never found that comfortable.

[davebowler] 20/2/2019 08:46

Also ARTL is worth a look, with a big discount to NAV and a recent catalyst for that to narrow;

Alpha Real Trust announces its intention to buy back its ordinary shares ("Share Repurchases") using its existing cash resources, pursuant to the general authority given to it at the Company's Extraordinary General Meeting held on 8 January 2019 to make Share Repurchases of up to 24.99 per cent. of the voting share capital of the Company (being up to 16,718,895 ordinary shares)

[spectoacc] 20/2/2019 08:42

Rather like missing the per-share NAV off yesterday's RNS. Just oversights I guess - they certainly seem pleased with themselves:

"This is fabulous news and comes close on the heels of the raft of significant lettings we announced at the end of 2018 and earlier this year. "

Contrast with INTU's continuing NAV fall and ditching of the final divi this morning.

[fenners66] 20/2/2019 08:25

Don't they normally tell us the initial rental yields on new lettings?
These are absent from today's announcement

[salchow] 20/2/2019 07:57

Clausentum - there is a like for like increase in property valuation of 4.5%. The total valuation of the properties is reduced by £19.3M but this is because the size of the portfolio reduced. They sold more properties than they bought and paid down debt. It does not indicate a loss.

Anyway there seems to be more good news on lettings this morning and we should see the accounts figures before long.

[alter ego] 18/2/2019 16:57

I make that a reduction of £48m give or take.

[nerja] 18/2/2019 16:42

But the loan has gone down from 45% to 38,3% of the portfolio.

[clausentum] 18/2/2019 16:00

"an increase of 4.5% on a like-for-like basis from the prior year, adjusting for capital expenditure and disposals during the period. The overall valuation was GBP718.4m (31 December 2017: GBP737.7m)".

Therefore, without the adjustment for capital expenditure and disposals there was a £19.3M loss.

[2wild] 18/2/2019 15:33

I would suggest the 4.5% increase in Property values excluded sales and acquisitions, as on a like for like basis.

[sleepy] 18/2/2019 10:01

Thanks Tilts

[deanowls] 18/2/2019 09:47

Whilst taking a divi and reducing the LTV, all good in my eyes. Now if only Palace could do the same!

[tiltonboy] 18/2/2019 09:44

Sleepy,

Indeed it does.

[sleepy] 18/2/2019 09:36

Surely RGL holders are pleased that, as well as getting their chunky dividends, they have seen NAV growth of 4.5% during the year? Does the 4.5% include profits on sales of properties?

[trogerswinning] 18/2/2019 08:27

Not much detail! And very pedestrian valuation growth.

Much prefer Circle Property CRC which is doing +30% total return CAGR

[skyship] 18/2/2019 07:50

A bit of a meaningless RNS today....should just have waited for the statement on Thursday.

[dragonsteeth] 15/2/2019 15:34

This from FE Trustnet, re a Numis. report.


That said, the firm highlighted five UK property investment trusts on its recommended list, with Regional REIT being included as a ‘trading’; buy for its attractive covered yield and discount. The £344.9m trust is managed by Toscafund Asset Management and aims for an attractive total return with a strong focus on income.

“It is difficult to see a major catalyst for discounts to narrow significantly in 2019, meaning investors will need to take a longer-term view on total returns. We have retained Regional REIT on our recommended list on valuation grounds,” the broker said.

The trust currently owns 151 properties with 950 tenants. More than 70 per cent of the portfolio is offices, but 21 per cent is invested in industrial properties and 7.4 per cent in retail; its most valuable properties include Glasgow’s Tay House, Basildon’s Juniper Park and Woking’s Genesis Business Park.

Data from the Association of Investment Companies shows that Regional REIT is trading on a discount to NAV of 7.1 per cent, which is higher than the IT Property Direct – UK sector’s average discount of 3.6 per cent. It has ongoing charges of 4.81 per cent (including the most recent performance fee) and is yielding 7.9 per cent.

[stewart64] 15/2/2019 15:09

Back in at 100.96 having sold at 101.06..no margin there but.... worked out well for me as have rode the bounce profitably elsewhere.

[clausentum] 11/2/2019 18:41

21 Feb 2019 Q4 2018 Dividend and Portfolio Valuation

28 Mar 2019 Full year 2018 Preliminary Results Announcement

[spangle93] 07/2/2019 18:36

chucko/Specto - At the time of its launch, the inflation link nature of AEWL was what appealed - everyone was sounding the death knell of bonds and their ilk. Based on post 906, that threat doesn't seem so large, though I wouldn't trust Carney to boil an egg when it comes to making political statements.

I hold RGL, and feel confident about it, though it's not the bargain it was when some took the plunge a couple of months ago - also a couple of companies in the student accommodation sphere and infrastructure ITs/funds. Just looking round at other potential "safer" options.

Many thanks to all for your ideas

[chucko1] 07/2/2019 17:02

One thing to bear in mind is the testimony of Carney today post-BoE decision. The takeaway is one further interest rate rise in the next THREE years. Maybe, maybe not, but if interest rates do not rise, it underpins many of these REITs, unless there is a severe recession and relettings are required etc.

[spectoacc] 07/2/2019 16:37

@chucko1 - I've struggled to get excited about AEWL, don't hold any atm. Seems to be taking the same tail risk as the others, only with a much lower yield. c.20yr leases are fine, but not if the tenants go bust in a bad recession.

AEWU NAV should be above 98p post-divi, and heading back to £1 again over the next quarter. Missed that there was a director buy on it - 2x 50k at 91.25p, so decent money (& earning the divi).

RGL's low cost of debt is an attraction, as is market cap (£377m to AEWU's £135m for eg. And - as you say - AEWL perhaps a bit too small at £72m).

We're preaching to the converted of course!

[chucko1] 07/2/2019 16:30

SpectoAcc, Spangle, I have also been adding AEWU recently and forming a position in RGL. I also like to own some of the infrastructure REITs to diversify.

I actually like buying AEWU prior to ex-div as it has tended to fall a little less than the 2p dividend. AEWL has indeed performed poorly, but it’s a really small fund and I see it finding a bottom here and it’s at a 4-5% discount and now is earning its full EPRA dividend, by the look of things.

AEW in it’s entirety seems to be a highly credible outfit.

[spectoacc] 07/2/2019 16:16

@Spangle93 - I hold both. RGL a bit more active, AEWU perhaps a bit more secure (lower LTV, smaller weighting to offices). Been a buyer of AEWU recently.