Schroder Real Estate Inv... Share Discussion Threads

[specuvestor] 23/6/2012 18:37

Hello All

Can somebody explain why the interest rate swaps mature in two tranches, the first of £62.5m in July 2014 and the second of £111m in July 2016. (total £173.5m)

I have always been under the impression that these have been two separate loans with separate maturity dates of 2014 & 2016 but now I am confused. Would they have done this in anticipation of rolling over the larger amount of £111m for a further 2 years?

Details of the interest rate swaps are on page 17 of the 2011 interim report.

[skyship] 23/6/2012 07:38

As we've seen elsewhere, financing can be done, albeit through unconventional means outside the banks. Personally I would like to see the Company lock in these low interest rates for the long term and take the hit on the NAV through the losses on the swaps.

As for the dividend, I suspect they are locked into the 3.52p rate as a result of implied promises at the time of the placing two years ago. If not, then a cut to 3.00p would be covered and the yield would still be over 9%.

[danny500] 22/6/2012 19:06

guys how much would you think the uncovered divi is weighing on the share price? maybe a cut say 20% wouldnt necessarily be a bad thing as we would be much nearer bein covered with plenty of potential income upside to come by end of 2014. and surely any lender looking to finance us wouldnt be happy with outgoins exceeding income.im looking to buy more of these just would feel more comfortable having a covered divi and who knows may bolster the share price.

[lord gnome] 22/6/2012 17:49

I think the need to refinance in two year's time is already weighing on the share price. Why else would a share be priced with such a discount to NAV and such a high yield? If they take cash from sales when they can get a good price they will strengthen the balance sheet, reduce the gearing and be in a stronger negotiating position.

[envirovision] 22/6/2012 17:08

As a guess they are probably setting aside proceeds in anticipation of refinancing, I know it seems early but with the way this year is panning out this could be the only way to secure and agreement on decent terms and which is clearly more important than attempting to grow NAV at this stage one would think.

[danny500] 22/6/2012 16:42

another asset sold albeit low yielding and at just above book price. i wonder what they propose to do with the proceeds from this and also plantation place? i guess they must be looking at more property somewhere. when the BT building was sold they were quick to announce paying down of the loan from the cash recieved.personally id like to see reynards get its planning agreed and us developing it either with a view to selling on or renting out for a nice regular income.

[skyship] 15/6/2012 11:54

Doesn't affect us directly - but evidences why we should feel confident under the Schroders umbrella:

[danny500] 14/6/2012 23:19

what about the other 50%? nothing like a guarantee!

[sleepy] 14/6/2012 22:49

CWA1 - you might like to be careful with the dividends on some of the property investment trusts as they consistently pay out more than their income

[cwa1] 14/6/2012 13:29

Made a top up this morning. At these levels they are either fantastically good value or I'm missing something and they are about to go belly up! Hoping and trusting it is not the latter. Superb near 11% yield whilst we wait to find out which one it is :-)

[mirandaj] 14/6/2012 12:49

Thank you SKYSHIP.

I let Schroders know this morning that their live feed prices were not working on the web site. They are now.

[skyship] 14/6/2012 12:36

Finals to be announced on 17th July.

[skyship] 12/6/2012 08:51

I assume it's Lloyds continuing to sell down its holding.

As for the chart comment, well the reality is that we're back to the Sept'11, Dec'11 & Jan'12 support levels and I would expect that to hold. The yield @ 33p = 10.67%. As an aside, note that PCTN bounced on that yield level recently.

So, not unduly concerned & even a cursory look at the Fundamentals endorses that view...

[eeza] 12/6/2012 08:15

Chart starting to look sickly. Obviously a large sell in the background as Sp drops almost daily. Now yielding 10.5%.

[eeza] 24/5/2012 12:31

Very tight spread today. 33.77 - 33.82p

[4spiel] 22/5/2012 13:26

Nice to get the dividend.

[2baffled] 21/5/2012 15:58

Yes and look at the dates;-

5. Date of the transaction and date on which the threshold is crossed or reached:
9 February 2012

6. Date on which issuer notified:
15 May 2012

[eeza] 21/5/2012 15:52

RNS
Lloyds sold further 9mill.

[eeza] 16/5/2012 11:04

Yes, you are correct Gary.
3 months to declare. Disgrace.

[tiltonboy] 16/5/2012 11:01

also sold PCTN.

[eeza] 16/5/2012 10:50

RNS
Lloyds sold 6mill.

Be interesting to see who's taken them.

[gary1966] 16/5/2012 10:50

Old news. Transaction dated 09.02.12.

[dunnmt] 11/5/2012 19:25

Interesting to note, that I brought 8461 shares today and it is showing as a sell. Other trades at a similar time at a similar price are also showing as sells.

[skyship] 08/5/2012 17:36

Tilts - can you perhaps throw some light on today's trades. Looks like one buyer hoovering it up - followed by two 500k put-throughs late in the day; perhaps the same buyer.