Regional Reit Share Discussion Threads

[spectoacc] 21/8/2019 09:20

@JGH03 - generally a good thing as means losing a tenant/renewals are likely to lead to more income. But also best to largely ignore unless the leases are very short. There's also usually some capital expenditure needed to reach the higher rent level.

(Isn't a lost opportunity on purchase as the tenant will have signed up at a time when rents were lower).

[jgh03] 21/8/2019 09:07

@SpectoAcc. Thanks. So if the reversionary yield is higher than the current actual yield then the rent being paid is lower than if the tenant left and a new tenant was found … which sounds like a lost opportunity in terms of the current rental income ? Or maybe it is a good thing because it suggests a margin of safety in the event of the tenant leaving ?

[lord gnome] 21/8/2019 09:03

Yes, and if the lease on one of the properties was sold on to a new occupier, it would commend a premium based on reversionary yield expectations

[spectoacc] 21/8/2019 08:50

@JGH03 - it's the expected yield that would be achieved should the property fall vacant. In a rising rents environment, you want short leases - re-let at higher levels. Arguably the case for industrial & offices, certainly not the case for retail atm.

[jgh03] 21/8/2019 08:32

Could someone explain to me what a "reversionary yield" is ?

PS. Yes, I have tried looking it up on the internet but I'm none the wiser.

[skyship] 21/8/2019 07:48

Net initial yield of 8.87% and anticipated reversionary yield of 9.54%.

Pretty impressive. IMO truly surprising that such yields are still widely available.

[cfro] 21/8/2019 07:38

Some juicy yields there.. :-)

[spectoacc] 21/8/2019 07:17

Looks pretty good - reversionary yield in particular. Hopefully not half the price in a few months ;)

[cwa1] 21/8/2019 07:12

Substantial Portfolio Acquisition for GBP25.9m

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is delighted to announce today that it has acquired a portfolio of six office assets for a total consideration of GBP25.9million.

The portfolio comprises six offices located in Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester. The assets total circa 172,442sq. ft. and are expected to provide a net income of approximately GBP2.36 million per annum from 27 tenants; equating to a net initial yield of 8.87% and anticipated reversionary yield of 9.54%. The portfolio's weighted average unexpired lease term is 4.9 years.

The acquired tenant profile is deliberately diversified across both industry type and geography, with no crossover to existing Regional REIT tenants.

Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:

"We are delighted to have secured this portfolio of assets which is both earnings accretive and will further enhance the diversity and scale of our property portfolio.

"There continues to be a significant pipeline of attractive near-term investment opportunities across the UK, for which Regional REIT can utilise its asset management experience and capital resources to provide sector-leading returns for shareholders.

"We look forward to announcing further accretive acquisitions as we invest the proceeds from our recent successful equity raise, taking advantage of the strong opportunities that we are seeing in our markets."

[nimbo1] 16/8/2019 09:17

reckon we'll have the chance to buy sub 100 imo - probably mid 90's. imo only...and i would welcome the opportunity.

In an environment where sector leading players like hasteen operating in the growth part of the market fall to 12%+ discounts anything is possible.

[skyship] 14/8/2019 11:04

Would be very happy with, say, 4% capital growth on top of the 8% yield. A good portfolio banker.

[tournesol] 14/8/2019 10:54

BorisJHair

Were you performing at the Fringe?

T

[borisjohnsonshair] 14/8/2019 10:18

High capital growth not likely here.

[skyship] 14/8/2019 09:19

Indeed, lettings still strong. One has to remember that 88pc of the economy is not accounted for by exports to the EU!

I'm still thinking that we could see a small further fallback/consolidation to the 102p level; so will hold off on my final top-up.


free stock charts from uk.advfn.com

[lord gnome] 14/8/2019 09:12

Not really bojo. It's a REIT don't forget. I fear that you may be mixing up capital growth with the income which pays the dividends.

[borisjohnsonshair] 14/8/2019 08:52

This is 7.75% div with 2.25 cover!! What a gem.

[fenners66] 14/8/2019 08:41

About a 3% increase in turnover.
If that passed down to dividend I would take an extra 3% thanks

[cfro] 14/8/2019 08:18

Still strong demand for lettings then despite Brexit etc..

[spectoacc] 14/8/2019 07:34

Reads very well, even if some are peanuts.

[cwa1] 14/8/2019 07:24

Further progress...

[skyship] 09/8/2019 09:09

EDISON Update - nothing new:

[skyship] 03/8/2019 08:41

chucko - agreed, I've averaged both in and out in RGL; and always on reasonably tight spreads.

[chucko1] 02/8/2019 17:07

Just average in! Have a cup of tea in between while (or even a holiday). My recipe for a de-stressed life.

I know that I cannot perfect timings of purchases or sales, so I do not try. But I do recognise what’s cheap and what’s expensive which is why I both average in and out.

[skyship] 02/8/2019 16:08

Specto - agreed, especially remembering that they pay 2p/Qtr!

[spectoacc] 02/8/2019 12:24

I find the issue isn't the timing going into cash - it's the getting back in ;)