Schroder European Real E... Share Discussion Threads

[arbus5000] 29/1/2025 05:25

dont use common sense lad, its forbidden with this travelling circus.

[rjmahan] 29/1/2025 00:24

RCTURNER - if your share is trading at a discount, you know the assets real value, such that you make your investors a profit - why not buy back your own shares if its the best risk adjusted invesment you know.

To me its one of the best possible uses of shareholder funds.

[rogerrail] 28/1/2025 14:59

Kepler research report, FWIWhTTps://www.trustintelligence.co.uk/investor/articles/features-investor-schroder-european-real-estate-investment-trust-demonstrating-resilience-with-distinction-retail-jan-2025

[kenmitch] 27/1/2025 17:13

SKYSHIP.

I hadn’t realised that you were basically agreeing and so that I had misinterpreted your post. Thanks for explaining that.

As for SERE and SO many others (including WHR which I recently bought for the first time) and SUPR, bouncing today from an all time low, they look way oversold, and at these prices a great income yield while we wait for the upside. Interest rate cuts should do the trick, while of those I hold WHR and SERE look good targets for bidders or some form of positive corporate action.

[essentialinvestor] 27/1/2025 14:23

£1.25-£1.30 will get SHED, I previously assumed £1.25-£1.35.

LMP as a bidder - all idle speculation only on my part.

Institutional investors get increased liquidity as a result.

[speedsgh] 27/1/2025 14:15

AFAIUI while both AEWU & LMP are registered as REITs for tax purposes, they belong to 2 different chapters of the FCA's listing rules. LMP belong to Chapter 6 and is classified as a REIT trading company (similar to SGRO & PCTN) whereas AEWU belongs to Chapter 15 for REITs that are closed-ended funds. Chapter 15 requires oversight of the manager and for the board of directors to be independent from the manager. LMP therefore does not feature on the AIC website which only features closed-ended investment trusts.

[rcturner2] 27/1/2025 13:23

I never understand investment trusts buying back their shares.

Investors have literally given them their money to invest according to the mandate of the trust.

Any IT with excess cash should invest it in more assets.

[skyship] 27/1/2025 08:05

Add in Friday's purchase of 61,700 @ 66p and the total last week was 313,100 at an average of 65.4p.

[skyship] 27/1/2025 07:21

LMP discount the lowest at 5.9% v. AEWU at 10.1%.

No buybacks there either.

[kenmitch] 26/1/2025 17:08

airbus5000

The discount might have been higher or lower.Who knows? Wiser use of that £125 million might have seen a smaller discount than the current 15.7%.

AEWU is by far the best performer of the Commercial Property Trusts I bought in 2020. Unlike the others they haven’t bought back any shares. And the AEWU discount is by a long way the lowest in the entire UK Commercial Property sector! So MUCH lower than Trusts buying back. This AIC link shows them all:-

[arbus5000] 26/1/2025 16:10

what would their discount be if there were no buy-backs? 25-40% at least....

[kenmitch] 26/1/2025 15:51

I forgot to include this bit from the Kepler comment after SEQI’s most recent results:-

“The board has continued to implement one of the largest buybacks in the listed fund sector, commenced back in July 2022, spending £39.5m to repurchase 49.3 million shares over the period. These contributed 0.47p to NAV per share. The board states it will continue these buybacks to support share price and reduce discount levels, factoring in the underlying liquidity of the portfolio, dividend cover and portfolio diversification needs amongst other considerations.̶1;

So almost £40 million spent on buybacks contributed just 0.47p to NAV per share. So the total £125 million wasted on their buybacks presumably added a tiny 1.5p to NAV. A lot of money to spend for minimal effect on the NAV isn’t it? Note too how the board “will continue these buybacks to support share price and reduce discount levels,” despite the discount widening from 6% to 15.7% and these buybacks achieving the opposite of their intention.

[skyship] 26/1/2025 13:33

In the first week of buybacks they've bought in 251,400 shares at a cost of £164,055. An average price paid of 65.26p.

[kenmitch] 26/1/2025 11:47

SERE Share buybacks will be a waste of money as Trusts are finding out the hard way.

There is a classic example of the money wasted on buybacks in Investors Chronicle this week. It’s SEQI (SEQUOIA ECONOMIC INFRASTRUCTURE INCOME TRUST).

They’ve spent £125 million buying back 10% of their shares in by far the biggest buyback in the sector. The discount to NAV was 6% when they started buying back. It has now widened to 15.7%. So much for buybacks helping to narrow the discount!

A Manager is quoted saying “We could double the buybacks and it wouldn’t change things. They just show we are confident in the business.” What’s the point then of continuing with their buybacks even now while admitting that they haven’t been effective so far despite £125 million being spent on them?

So they’ve spent £125 million to achieve what??????? This is what they’ve achieved with that waste of money. A discount doubling instead of reducing and the other achievement apparently is to show their confidence in the business. That’s a very expensive way of doing that. AND big buybacks are shrinking these Trusts and reducing the capital base and making them more illiquid.

Some Trusts are getting the message at last and bemoaning that their buybacks hadn’t worked as hoped. When will more commentators and bb posters get the message too?

[skyship] 22/1/2025 11:14

Agreed; but doubt they'll get very much stock below 70p - a couple of million perhaps.

[hindsight] 22/1/2025 09:50

Dont think the BB should chase for stock, quite happy to let them buy the 15% slowly at a big discount so increasing the remaining discount. There by making the whole even more attractive to another party

[skyship] 22/1/2025 08:59

Quite a bit of volume yesterday with many sales in the 64p-65p range. Though why anyone would sell down there really beats me; as it is obvious that the buyback price will have to move up to secure any meaningful result.

So far just 126k @ c64.5p. May well have to pay 65p+ today.

[frazboy] 21/1/2025 10:00

BB has started. Trivial volume (~60k). We'll see what volume it settles down at in the next week or so.

[hindsight] 17/1/2025 10:49

Agree Skyship

[skyship] 17/1/2025 10:27

Of course this microcap REIT will now just get even smaller.

They should really just put up a For Sale notice and enter wind-down.

[gopher] 17/1/2025 10:15

Agree and 15% of existing share is chunky

[lord gnome] 17/1/2025 07:27

It certainly won't do any harm. I don't normally like buy backs, but given the nav discount here, it makes a lot of sense. It's the best investment that they could make with surplus cash.

[skyship] 17/1/2025 07:22

Share buyback will put a floor under the share price Could well take us back to the 70p level over coming weeks.