Regional Reit Share Discussion Threads

[skyship] 21/2/2020 13:50

spob - agreed, though HL not much better!

[skyship] 21/2/2020 13:50

fenners - absolutely no idea why that glitch. Just goes to show yet again that one should never rely on third party calculations. Always DYOR...

[spob] 21/2/2020 13:49

Please don't use advfn for any financial data

they are the worst I have ever seen for accuracy

[fenners66] 21/2/2020 13:46

SKYSHIP - so I have had a brief look and the Financials page shows it as not having a yield , whereas we can see the detail of 4 interim dividends.
I wonder if not showing a "final" dividend leaves advfn incapable of calculating full year dividend and therefore yield ?
Which means it does not show up in a yield search and hence less buyers and better yield ?

[minerve 2] 21/2/2020 12:23

Well, I hope you are both right. I like RGL but will wait and see what happens for now.

Good luck to all here.

[lord gnome] 21/2/2020 12:20

I doubt that asset quality is an issue for RGL. Given the small size of RGL and the huge size of the regional property market, it is just a case of waiting for the right assets to come along. The pipeline is there, ready and waiting.

[skyship] 21/2/2020 11:30

Minerve - A fair amount of truth in that; but does ignore the one big, profound dynamic - GEARING.

RGL has a 38% LTV; has debt costing now less than 3.5% and can buy assets on a NIY of 8.5%.

Management will of course be alert to the quality aspect; but there is plenty of property to choose from, so I'm pretty sure they'll invest the cash wisely.

[minerve 2] 21/2/2020 11:13

I must admit I am not as fully knowledgeable of REITS as SKYSHIP so I take his comments with great respect, but I just don't see with _real_ Brexit around the corner how a REIT can continually expand its balance sheet whilst maintaining local monopoly - and hence decent rent yields - year in year out in this climate. Obviously many are selling commercial property and Regional want to mop it all up. Increasing assets inevitably leads to incremental depreciating asset quality. I would much rather Regional remained content with size and local monopoly quality - like the Aztec holding - rather than continual increases. Of course when you are taking a percentage which increases with balance sheet size it is very difficult to persuade them differently. I know this is a different game here but this was the downfall and weakness of both Woodford and Burford IMO. Executives don't know when to call it a day on balance sheet size - it is not the primary growth that as investors we should be just looking for.

[quepassa] 21/2/2020 07:13

Best ignore melody9999.

everything she writes is absolute worthless trash.

[salchow] 20/2/2020 17:45

The last share issue was open to existing shareholders not just institutions. There may be the opportunity to invest further at a reduced price and with the dividend that is being paid that would be a compelling proposition.

[minerve 2] 20/2/2020 16:09

I just have a suspicion that the equity raise could be lower than people hope. I could be wrong of course. Risk premium going forward needs to be high due to ongoing uncertainty of Brexit trade agreements. If I was an institution looking to place my money here I would want a much greater discount than 4 or 5p considering most of the premium to NAV has just arisen since the GE result.

I have sold for c21% return (excluding dividends) and will wait and see what happens....

[chucko1] 20/2/2020 09:34

Pretty small drop (2.4p mid) so far.

[borisjohnsonshair] 20/2/2020 08:01

They'll get the money at a small discount and invest it wisely for us holders. Stick with these guys.

[skyship] 20/2/2020 07:50

melody - quite obviously all these equity issues are announced in advance for security reasons - their brokers are touting around to ascertain the possible sum and the highest price.

My guess is for a £75m-£100m issue at c115p.

Ie, the current share price has got a bit ahead of itself...

[melody9999] 20/2/2020 07:39

the fact they have announced the capital raise in advance suggests to me that they anticipate raising funds at or near the current share price value. the raise last year was done at a discount of 1.8%, less than the 2.5p dividend that holders on 28/2 will receive. meanwhile a successful raise should be good for further growth in NAV and share price

Think I'm holding ..... any other interpretations?

[skinny] 20/2/2020 07:14

.

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, today announces that it is considering an equity fundraise. The proceeds will be used to take advantage of its growing near term pipeline of accretive growth opportunities in the investment market.

Occupational take-up in the Group's properties remains robust, which coupled with an experienced hands-on asset manager delivering successful asset management initiatives, has resulted in the diversified income portfolio continuing to expand. As announced on 29 January 2020, the portfolio was valued at £787.9m as at 31 December 2019, an increase of 9.7% during 2019, reflecting acquisitions made in the period. The like-for-like value of the Group's core office and industrial segment (93.6% by value) also increased in 2019 by 1.4%. Portfolio valuation was broadly unchanged on a like for like basis with a 0.1% decrease.

more.....

As previously announced, forthcoming events:

27 February 2020 Q4 2019 Dividend Declaration

26 March 2020 Full Year 2019 Preliminary Results Announcement

There will be a briefing for analysts at 9:30am on 26 March 2020 at the Buchanan offices, 107 Cheapside, EC2V 6DN. To request attendance please contact [e-mail]

[skyship] 20/2/2020 07:10

See Header:

"Potential Equity Fundraise for Accretive Growth Opportunities"

Any such equity fundraise is expected to follow the publication of a prospectus, with further announcements to follow in due course.

As previously announced, forthcoming events:
27 February 2020 Q4 2019 Dividend Declaration
26 March 2020 Full Year 2019 Preliminary Results Announcement

[panshanger1] 19/2/2020 17:47

The trends your friend - till it ain't !!

[chucko1] 19/2/2020 16:48

It's the TSLA of the UK REITs!

[lord gnome] 19/2/2020 15:30

It's a brave man who calls top on this run. Amazed and delighted to see this continued strength. My TW. On a similar journey. Property and building must be hot at present.

[badtime] 19/2/2020 15:12

Wish this would stop going up ..happy for the income but the realising a capital gain is distracting me

[ramellous] 19/2/2020 13:34

Must be a few waiting for divi announcement. Good ride

[ramellous] 19/2/2020 13:34

Must be a few waiting for divi announcement. Good ride

[skyship] 19/2/2020 08:34

AEWU announced their placing this morning. A smaller sum than that intimated; but the price quite bold - 97p. They too holding up well. So SHED, WHR & AEWU not yet affected by the liquidity interruption.

[melody9999] 19/2/2020 07:45

agree Dav - especially when you are getting 7% even if the share price consolidates for a while