Regional Reit Share Discussion Threads

[rcturner2] 13/9/2019 08:10

I've doubled up today as well.

[skyship] 13/9/2019 07:59

Made my final top-up near the close @ 102.3p...takes me back up to the level held at the time of the rights issue @ 106.5p.

At this level the historic yield = 7.87% and the f/c prospective = 8.06%. Great value with the discount also at c10%.

[sleepy] 13/9/2019 00:51

nimbo and particularly speedsgh - thank you

[2wild] 12/9/2019 12:44

Results were ok with net asset value only marginally down from 31 March NAV which was also down on 2018 year end. September NAV will also be down following the 8% diluted £62 million share issue and associated costs, intermediaries commissions, plus fees and property taxes (if due on REITs) on new property purchases. Div will also be uncovered this year.

However share price well down in last few months. Have topped up at 102.73p today.

[speedsgh] 12/9/2019 12:26

Sleepy - From the 2017 Interim Results...
"Brennan House, Farnborough. Following its purchase in March 2017 as part of a portfolio, and having already been comprehensively refurbished, the entire building was taken by Fluor Limited on a 7-year lease, subject to break options, at a headline rent of £756,536 pa (£24.50 psf). Brennan House is a self-contained Grade A office building of 30,879 sq. ft. with its own car parking facilities."

Brennan House was part of the portfolio acquired from Conygar Investment Company (CIC) in March 2017...
Conditional Acquisition of c. £129m of Property Assets from The Conygar Investment Company PLC -

As at 30/6/17 there was just 1.9yrs WAULT to first break option so presumably there was a break option in Q2 2019 that Fluor have evidently exercised. Have to admit that the wording in yday's rns is not exactly clear but at a guess RGL may have had in place an agreement for lease with Fluor that was conditional on a customer contract being extended. When they were not awarded the contract extension, Fluor exercised the break option in their existing lease & the new lease has obviously not been taken up. Seems a plausible explanation but I may of course be well wide of the mark.

CEO resigned at start of May following poor numbers...


"The company last month also was not chosen as repeat contractor for a lucrative LOGCAP military construction and logistics support contract in Afghanistan, although it was re-selected to support DOD and other agencies in Africa."

[nimbo1] 12/9/2019 10:36

It means the tenant left - therefore they currently have no tennant in that building and need to find a new tenant. So that asset is currently not income producing.

[sleepy] 11/9/2019 16:46

Can anyone pls explain the first two sentences of the paragraph on Brennan House in 1293 please

[speedsgh] 11/9/2019 16:40

Some interesting Property Case Studies from pg28 onwards in the Investor Presentation for the Interim Results...

Interim Results: Investor Presentation -

[speedsgh] 11/9/2019 16:32

From the interims...

Brennan House, Farnborough - We were ahead of business plan when we took the opportunity to do a contract-led letting to Fluor Limited. Unfortunately, Fluor exercised a valid break notice as their contract was not extended. Brennan House presents well and we are exploring opportunity to carry out works to upgrade the building. We are actively marketing and have some interest. We are hopeful of an early letting.

Pdf brochure of Brennan House can be downloaded from here - - or from here

[salchow] 10/9/2019 18:51

Based on the figures put forward by Skyship it looks to me as if the placing should have reduced the net asset value per share by around 1p which if correct gives little to worry about although it looks as if the price will drift down for a while.

[chucko1] 10/9/2019 18:30

Sleepy, yes you are correct to the extent that a shareholder did not participate. What I was really focusing on the “like for like” NAV. That said, it does not really bother me as all I really care about is stability of EPRA dividend coverage. This is all that really matters in the long run, although the asset management results have been a decent benefit and provides for special extra dividends.

[cfro] 10/9/2019 18:02

Very pleased with the results today. Extremely upbeat outlook statement too.

[skyship] 10/9/2019 16:47

Sleepy - shareholders participated:

-- 28,617,223 New Ordinary Shares under the Placing, raising gross proceeds of GBP30.5 million;
-- 22,146,290 New Ordinary Shares taken up under the Open Offer, including excess applications, raising gross proceeds of GBP23.6 million;
-- 1,100,000 New Ordinary Shares under the Offer for Subscription, raising gross proceeds of GBP1.2 million; and
-- 6,821,934 New Ordinary Shares under the Intermediaries Offer, raising gross proceeds of GBP7.2 million.

[sleepy] 10/9/2019 16:31

chucko1 - is that correct as equity was raised at a price below asset value?

Raising equity at below asset value may well be in the fund managers interest but it must be questionable as to whether it is in the shareholders interest?

[chucko1] 10/9/2019 11:00

The NAV hit would be only a function of the fees payable on the equity raise. I would estimate no more than a penny. The overall direction of travel remains positive, however, and that is the point.

[2wild] 10/9/2019 10:52

LOL the 114.3p is at 30th June, before the funds were raised and NAV diluted.

[skyship] 10/9/2019 07:39

NAV at 114.3p - slightly better than my estimate (1221) of 113.9p.

[skyship] 05/9/2019 08:21

XD 1.9p today

[rcturner2] 03/9/2019 10:14

I have bought back in today.

[cwa1] 29/8/2019 07:21

The Company will pay a dividend of 1.90 pence per share for the period 1 April 2019 to 30 June 2019. The dividend payment will be made on 15 October 2019 to shareholders on the register as at 6 September 2019. The ex-dividend date will be 5 September 2019. The entire dividend will be paid as a REIT property income distribution ("PID").

[clausentum] 21/8/2019 14:09

Skyship - thanks, I will have a look at it.

[skyship] 21/8/2019 13:26

Sleepy - thnx for that.

Clausentum - take a look at AEWU. Buy at c90p (SD payable) and you're on an 8.8% yield, though admittedly only a 7.5% NAV discount. Plenty of info on the AEWU thread.

Dividend fully covered by the way...

[clausentum] 21/8/2019 13:14

RGL is so safe and boring, I wish I could find another share like it paying 8% over the next year!

[sleepy] 21/8/2019 11:27

This link gives some info on the Manchester and Chester properties accounting for about half of the purchase -

[jgh03] 21/8/2019 09:27

Thank you SpectoAcc and LordGnome - very helpful.