Regional Reit Share Discussion Threads

[skyship] 07/7/2019 11:22

Minerve - thnx for that KF link - very useful.

I was particularly pleased at this reminder under Birmingham: "The second largest deal was the sale of Norfolk House for £20m to Regional REIT Ltd. The building is part let to HMRC who occupies almost half of the property."

Norfolk House was bought on a 7.92% yield! Of course would have been a very nice turn for the vendor; but IMO also a very attractive buy for RGL.

Yield 7.92% versus debt cost of 3.4%; and no doubt valuation yet again well below replacement cost.

[rick138] 03/7/2019 15:09

I was rather struck by the plans for development in Manchester, for example. It looks like a major expansion which might depress rents although Savill's is predicting a rise. Is this not a boom and bust sector, where there is constrained supply, followed by furious development, followed by slump?

[rick138] 02/7/2019 13:40

@Minerve2 Thanks, very interesting.

[minerve 2] 01/7/2019 18:00

Peruse these guys it would be great to get some feedback. :)

[minerve 2] 01/7/2019 17:45

Knight Frank Regional Office Market Reviews Q1 2019:

[cfro] 29/6/2019 17:36

The companies renting the office space will still have an obligation to pay rent Brexit or no Brexit..

A lot of the portfolio is let to major international companies so collecting rent from them shouldnt be any cause of concern.

[rick138] 28/6/2019 21:15

Two things I found while looking at the most recent set of accounts and the on-site info: the performance fee was £7 million last year, which is quite hefty; and the composition of the portfolio is largely offices with a smaller proportion of light industrial and retail - I think they disposed of some of the industrial units, thereby altering the proportions (£23 million net profit on disposals 2017-18). How does anyone feel about the relative merits of these categories and how they might perform, e.g. in a Brexit-related shock (or am I being too short-termist?)

[chucko1] 28/6/2019 11:43

2wild, my experience has been that you tend to get fully allocated in the excess share applications. But RGL is on a tear, and there’s always the risk that you get left short.

Doing what you are doing is what kept my head above water in ESP, which I had in some size. We PIs can be a tad nimbler than the institutions and these REITs lend themselves pretty well to that strategy.

That said, difficult to trade in much size in RGL right now.

[2wild] 28/6/2019 11:09

Also had some RGL outside my ISAs which I have just sold at 108p. Will apply to buy back at 106.5 in my ISA with an excess share application.

[wirralowl] 28/6/2019 11:04

Decent article:

[chucko1] 28/6/2019 10:58

HL pay gross. Barclays Smart Investor pay with an extraordinary delay - different times for different people and different types of accounts. Some more than a year late: that’s not policy, it’s incompetence and a near hatred of their customers.

[2wild] 28/6/2019 10:22

RGL pays pids and 20% is deducted at source, unless in a ISA or pension.
I have ISAs with Lloyds Bank and Selftrade who always pay the full gross pid amounts on pay day.

[spectoacc] 28/6/2019 09:38

Apologies, not an answer to your question on RGL, but I know on eg WHR that different brokers do different things. I've one who pay everything gross into ISA, as they IMO should. So if a 1.5p divi is declared, I get the 1.5p.

Another pays only the net divi, then much later (weeks) I get the tax too. So exactly the same amount either way in ISA/SIPP with each, just a bit harder to keep track of in one.

From what I recall, the declared divi is what you ultimately get with RGL.

Now if we get onto PIDs....(A nice explanation of differing tax treatments here):

[lord gnome] 28/6/2019 09:36

cfro - tax is payable on a PID. Generally I lose 20% of any dividends paid, but get the deduction refunded in my ISA within three months. It's a bit convoluted, but I get my full dividends in my ISA eventually. Moral? Hold these in your ISA.

[cfro] 28/6/2019 09:32

Does anyone know re dividends: is a withholding tax deducted at source on these?

If so what if the shares are held in an ISA?

[drectly] 27/6/2019 20:57

I guess (do not know) that it means you cannot sell your option to buy shares, which you normally can with a rights issue. Makes sense with the way it is structured, price just below market price.

[nbudd] 27/6/2019 19:32

I see from the prospectus that "although the Open Offer Entitlements and Excess Open Offer Entitlements will be admitted to CREST and be enabled for settlement, the Open Offer Entitlements and Excess Open Offer Entitlements will not be tradeable or listed".
Can anyone advise the implications of this?

[bathcoup] 27/6/2019 08:25

chucko1, SKYSHIP - Thanks!
"it’s listed overseas" I suppose RGL, headquartered in Guernsey, is listed on LSE.

[skyship] 27/6/2019 06:41

Also AIM listed stocks free of SD...

[chucko1] 26/6/2019 23:02

Not on RGL as it’s listed overseas. On AEWU, for example, you would have to pay stamp duty. It’s worth checking which ones are and which ones are not liable for duty, especially if you fancy trading in and out of a portion of your holding.

[bathcoup] 26/6/2019 21:23

chucko1- "there is not stamp duty on this one" why is that?
I understand that new shares (ipo, placing etc.) don't attract stamp duty but if I buy RGL shares tomorrow, don't I need to pay 0.5% stamp duty?

[chucko1] 26/6/2019 18:07

Don’t quite think this one is going to triple! But post raise, likely to test its recent highs. Worth buying at 106.5p, but given there is not stamp duty on this one, it barely makes any difference which route you take.

[spangle93] 26/6/2019 17:21

There's limited attraction in committing at this stage to take up one's entitlement when the open market price is so similar.

Having said that, the last rights issue I took part in was FTR and it's tripled in a year :-) The downside was that I had so few shares that I only took part to boost my holding so that it was worth more than the cost of selling. Ah, those dot com days, sigh :-(

[stewart64] 26/6/2019 10:38

Buys going through this morning at close to the new share offer price. Did seem a very bullish narrow margin, though it has served the purpose of supporting the share price above what might have been.

[cwa1] 25/6/2019 15:26

I see the intermediaries are:-

12. Intermediaries
The Intermediaries authorised at the date of this document to use this document in connection with the
Intermediaries Offer are:
• AJ Bell Securities • Jarvis Investment Management Limited
• EFG Harris Allday • Interactive Investor Services Limited
• Equiniti Financial Services Limited • Redmayne Bentley LLP

Tho' obviously not a complete list as iDealing are definitely offering it as well.