Regional Reit Share Discussion Threads

[stewart64] 06/6/2019 09:39

I'm surprised this is holding up. The sub ipo intentions seem to be likely before the next dividend. If it holds up at around 109p the offer price will probably be around 104p where the share price will likely drop. Fair play to those who have held though as a couple of dividends totalling 3.8p should keep any total loss to zero if the ipo is announced over the summer. Of course, I could be wrong and it continues to climb above 110p.

[18bt] 06/6/2019 08:21

xd 1.9p today, so net gain so far. Apologies originally put 1.4p typo - thanks to dendria for pointing out.

[lord gnome] 06/6/2019 07:55

Nice investment for Sheffield Hallam. They've just saved themselves all that rent - better than money in the bank. Great deal for RGL. Very happy to hold. News / Prices do seem to be going in our direction at the present.

[nimbo1] 06/6/2019 07:55

It is excellent news and shows they really are executing on their individual asset strategy - its nice they have a plan for everything and can add value as opposed to just buying yield to hold it. However in this instance a lot of the value created would probably be in the strategic value to the university I suspect - i.e. they sound like a special purchaser. It doesn't necessarily mean the whole portfolio is woefully undervalued but it does bode very well I agree.

[ramellous] 06/6/2019 07:45

Who were making the dec 18 valuations? Our discount to nav must be a lot higher in reality then?

[spectoacc] 06/6/2019 07:35

"Regional REIT Limited (LSE: RGL), the regional real estate investment specialists, today announces that London and Scottish Property Investment Management (LSPIM) has on behalf of Regional REIT, contracted to sell the office building known as Aspect Court, Pond Hill, Sheffield to Sheffield Hallam University for GBP8.8 million, reflecting a net initial yield of 6.6%. The sale price marks an uplift of 39.7% since acquisition and 24.8% against the 31 December 2018 valuation. "

[redhill9] 03/6/2019 09:56

Agreed. The announcement made it clear that RGL know what they intend using the new funds for, referring to "a pipeline of opportunities". I see the share price has just reached 110p but I'm not tempted to sell. A solid long-term hold for income and future growth I think.

[rcturner2] 03/6/2019 08:23

I think raising money at this time could be a very good move for RGL. There are going to be some distressed sellers in the market very soon I think and raising capital by issuing new shares will also reduce the LTV, assuming that they do not also increase their loans at the same time.

[nimbo1] 23/5/2019 11:39

This sums up the situation nicely imo

Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented: "During the first quarter of 2019, the Group saw no shortage of opportunities for making further earnings accretive acquisitions. Demand for high quality office and industrial assets, outside of London continued to grow and the returns that the Group can achieve from its portfolio has also risen even further to meet this increasing demand.

"With little or no new assets under development in our local regional markets, the supply/demand dynamics are even more compelling to the REIT and its investment strategy. This can best be demonstrated by the rental increases we achieved on renewals in 2018 where in our office portfolio, rents increased by an average of 11.8% on the leases which were renewed. With today's announcement it is evident that this trend is continuing and we are seeing clear signs of rental growth across our office portfolio. Our unique regional offering, of an integrated asset, property and finance management platform focused on core and core plus assets further underpins our confidence in delivering on our strategy in the year ahead, building on the very strong performance of the Company in 2018 that delivered 16.6% EPRA accounting returns to shareholders.

"The potential deal pipeline is considerable and diverse. As announced on the 17 May 2019, the Company is considering an equity fundraise to ensure that we best take advantage of the growing near-term pipeline of opportunities for the benefit of our shareholders. We continue to identify strong buying opportunities and look forward to updating shareholders on further value-enhancing investment, asset and portfolio management activities."

[nimbo1] 23/5/2019 10:05

The fundamentals are the same as they have been last few years... the facts show there has been chronic underinvestment in this asset class for 10 years and there is decent demand there.

The noise centres around the fact there are a bunch of incompetents running the country - there have been for a long time and probably will continue to be so indefinitely.

At the end of the day life in the real world goes on...

[davr0s] 23/5/2019 09:08

Chill out - it's a REIT not some hot mining stock. Shares will go down as well as up

[stewart64] 23/5/2019 08:59

Think fundamentals out the window just now with the political chaos at Westminster and a back door for Corbyn as early as this year.

Bad timing on the sub ipo intentions. The preference allocation to existing shareholders will be at 101p as per last ipo at this rate.

[spangle93] 23/5/2019 07:40

Positive sounding update this morning, with a small kick up to the first 3Q dividends

"The Group continues to see robust performance in the office and industrial occupancy markets of the UK's regions. The Group continues to trade in line with management's expectations for the year and management remains confident as to the Group's ability to return to a fully covered dividend during 2019."

[nimbo1] 22/5/2019 15:37

In this interest rate environment with eye wateringly high prices around (i don't mind the high prices just need some income too) I think reits like this are attractive. This is not meant as a tip but the other one which looks good to me is SRE - they are doing the same as regional reit but in germany - branding all the sites as well as doing their own lettings etc. Their latest PI world video worth a watch for interest only.

[chucko1] 22/5/2019 15:24

Also, it is possibly the case that RGL has to be sold by Woodford out of his Focus Fund and so the price is under pressure from that angle. That will pass.

[nimbo1] 22/5/2019 15:17

The main reason I sold AEWU recently and invested more here is because RGL are running a specialised strategy in an unloved part of the market which has basically seen no investment for 10 years plus. The results of that are starting to be shown in the NAV and regular letting of refurbished property. I think AEWU are fine and were attractive at 90p, can't really see the reason to buy at NAV when the trust is 15% retail.

[chucko1] 22/5/2019 13:24

RGL is 10% shy of NAV. AEWU is now 96.5p bid (just sold some!) and therefore basically at NAV. What are the arguments against switching from the latter to the former (other than diversification of sorts)?

[spectoacc] 22/5/2019 09:16

Good spot @nimbo1.

[nimbo1] 22/5/2019 09:15

An interesting part of WHR results and commentary yest is they are using the funds to buy assets from the open ended funds who are suffering redemptions (we all know the structure of those funds is all wrong!)...I imagine Regional Reit see the same opportunity.

‘We have definitely benefits from being able to buy from [open-ended] funds, and that was the point of the capital raise,’ said Bird.

‘We bought one or two assets that would have been 50 basis points more expensive last year.’

hxxps://citywire.co.uk/investment-trust-insider/news/now-warehouse-reit-bags-bargains-from-open-end-funds/a1231502?re=64844&ea=1174519&utm_source=BulkEmail_Investment+Trust+Insider+Daily&utm_medium=BulkEmail_Investment+Trust+Insider+Daily&utm_campaign=BulkEmail_Investment+Trust+Insider+Daily

[nimbo1] 21/5/2019 20:47

I use HL and AJB....so normally they have it covered. Was trying to buy nr 107

[davr0s] 21/5/2019 20:39

I should change your broker - 1.7m shares changed hands today

[nimbo1] 21/5/2019 17:04

well it worked well for you sky ship! I increased to 15% allocation today.

[clausentum] 21/5/2019 16:09

Ex-div date will be announced on Thursday with the dividend announcement. It can't go ex-div before it is officially announced.