Schroder Real Estate Inv... Share Discussion Threads

[essentialinvestor] 19/6/2020 14:57

I dont think it's the time for trying to be a hero in this sector
and buying in quantity, obvs could be wrong on that.

[1tcm1] 19/6/2020 14:44

Bunch of losers ponderously pondering over sixpence worth of shares....

Nothing changes.

[spectoacc] 19/6/2020 14:31

Agree they won't, even with LTV fairly low - but isn't the worst idea when NAV discount so large.

Not heard of any of the gated Unit Trusts having to dump stuff yet, but surely a matter of time. REITs who've made sales seem to have done so at good prices so far.

[essentialinvestor] 19/6/2020 14:22

SREI won't do that imv, they will look to issue equity if it sells on a NAV premium again.

[2wild] 19/6/2020 14:19

Several REITs are sitting on cash and trading at large discounts to nav. A share buy-back and corresponding reduction in debt to maintain or reduce the LTV would make sense.

[essentialinvestor] 19/6/2020 13:57

Thanks for that, would be good to clarify.

[spectoacc] 19/6/2020 13:56

The information must be out there - anyone with a Bloomberg Terminal? @chucko1? @Johnwig? :) :)

Phoned the co, got put through to Duncan Owen's secretary but he was on the phone. Will try again later if time. Coronavirus clearly not having much effect where they are.

[essentialinvestor] 19/6/2020 13:46

It's the Manager shareholding that it would be interesting to know.

Duncan has been running this for years, does he hold any?.

He's the expert in the real estate market.

The only way to find out might be to trawl back through RNS disclosures.

[essentialinvestor] 19/6/2020 13:39

100k shares is the largest director holding, 3 directors hold 100k,
one director holds nothing - that's from the report and accounts just published.

I've not seen any RNS stating the Manager has bought any recently.

[spectoacc] 19/6/2020 13:35

HL have two "regular purchase transactions" of 36k for Stephen Bligh, 100k for Lorraine Baldry. But no data going back more than 12 months.

[essentialinvestor] 19/6/2020 13:27

Looked through the report and accounts, Director holdings are arguably minimal
at 100,000 shares each, with one particular director not holding a single share?, unless I've misread that.

Neither can I find if Duncan or the management team hold any shares here.
There are over 120 pages to the accounts so that information may be there somwehere.


If anyone has information that says otherwise, please post.

From what I can see, minimal skin in the game imv, which I dont like.

[essentialinvestor] 19/6/2020 12:24

How many shares does the Manager hold?.

[spectoacc] 19/6/2020 10:40

Not mad keen on TA but a 3rd retest of 30p looks possible - would be buying more there.

[skinny] 19/6/2020 10:27

That seems to have freed the handbrake!

[spectoacc] 19/6/2020 10:25

150k at 33.2p

[spectoacc] 19/6/2020 08:30

Still a seller around, got well inside the spread buying this morning.

[essentialinvestor] 18/6/2020 11:39

It's a good question.

Across multiple companies I've noticed.

Assumed it was in case the facility was withdrawn?.

However, as SREI are in no rush to buy, perhaps not particularly
efficient?.

[cc2014] 18/6/2020 11:32

I have a question I'm looking for some help with.

SREI in common with many other companies has fully drawn down it's RCF of £52.5m. It ends up with £52.5m in the bank earning no interest and paying interest on the RCF at the appropriate rate. I appreciate there is a fee on the RCF so the interest isn't as much as the headline rate for drawing it down in full. Not very efficient in terms of cash management though.

I'm a little puzzled as to the reason for drawing it down. I understand these are usually drawn down for fixed amounts and fixed periods. It's clearly a warchest to go spending with but why draw it down in advance? (unless you are worried it's going to get withdrawn)?

Also, let's imagine a scenario where the warchest does not get deployed for whatever reason but meantime the balance sheet is deteriorating and the covenant ratios a bit tighter and when they come to negotiate the bank terms the bank doesn't fancy giving them £52.5m but say a lower number of £40m. I assume SREI would then be obliged to immediately repay the difference?


Usually corporate draw down the RCG because it is cheaper than the overdraft but that doesn't seem to apply here?

[spectoacc] 16/6/2020 09:55

Hope it isn't extended, has been nothing for landlords, but suspect you're right.

Market seems to be reflecting the push/pull btwn things opening up, a possible "2 metres down to 1 metre", but also the re-emergence in China & the failure for the decline to continue here. Be nice to be in NZ's shoes but a lot easier to control in a tiny, distant country.

[essentialinvestor] 15/6/2020 16:57

Just one other point that may already have been mentioned.

It was suggested on the results presentation they are seeing some cases of Can pay, but wont pay

The moratorium is likely to be rolled over for another 3 months would guess.

[essentialinvestor] 15/6/2020 16:23

Hi Sky, just saw your post. Apologies if that stat is incorrect. .
Thought it seemed a very large % and would have been helpful if I had confirmed it.
From memory that 3 year % value fall was mentioned in the FT. Thanks for the heads up.

[colonel a] 15/6/2020 15:02

I'm kicking myself. I thought ~40p was still a conservative price given the strength of their position but that the share price would react badly to the results regardless, albeit not much new in them.
So logically, sell and buy back - but I lacked commitment.
Did not see the global retrench of course, although 6500 on the FTSE did see a little premature.
Ho hum.

[nickrl] 15/6/2020 14:55

Colonel, yoiks me reading a couple of them and taking it as read for all!! So actually reasonable level of detail and certainly putting them closer to best in class for visibility not that it helps the SP!

[essentialinvestor] 15/6/2020 14:30

I can usually spell * listened - quick edit there.

[spectoacc] 15/6/2020 13:41

Thanks @EI