Schroder Real Estate Inv... Share Discussion Threads

[hugepants] 30/6/2020 18:16

IMO they are being punished for postponing the dividend. Lets face it the dividends are probably the main reason people invest in REITs. If the likes of EPIC with a 70% retail portfolio and a LTV 50% higher than SREI can continue to pay a reduced, but still chunky dividend, why did SREI feel the need to stop theirs completely? They have massive covenant cover and a low LTV. Sends out the wrong message. Maybe there is something they are not telling us.

[essentialinvestor] 30/6/2020 17:49

Hi Sky, hope you are keeping well, appreciate the view.

[skyship] 30/6/2020 16:49

EI - a good buy in my view. Hope to join you with a top-up tomorrow...

[skyship] 30/6/2020 16:47

free stock charts from uk.advfn.com

[essentialinvestor] 30/6/2020 16:00

Had a small amount @ 29.8.


Mid to high 20's was my guessestimate from 3 months ago.

[essentialinvestor] 30/6/2020 15:54

Skinny, any TA view?, thanks.

[skinny] 30/6/2020 15:08

Third time of trying.

[essentialinvestor] 30/6/2020 15:01

Here's the test of the 30 pence area, to be fair my cat Gump
could probably have called this one.

[essentialinvestor] 30/6/2020 08:59

SLI coming off quickly now as well. And SLI holds very little retail.

[essentialinvestor] 29/6/2020 11:43

SUS have a decent longer term record in sub prime lending- I dont hold.
And not sure this is the time in the cycle to buy a sub prime lender.

[cc2014] 29/6/2020 11:07

Indeed SpectoAcc. I refrained from adding PFG to my list as I think it's problems are further down the line.

The interesting part I think in all this mess is that the lenders lending to this sub-prime section aren't the banks but more high yield bond funds or private equity.

100p to 7p on NSF from the directors. WEIF holders should be thanking their lucky stars Woodford was a forced seller at 40p!


Anyways drfting off topic, but more than anything I think in a few months time we will have plenty of choice of what to buy. A much better position that the last year searching through hundreds of stocks to find just a few that are undervalued.

Depending on your metric, SREI looks cheap or potentially good value. But so does RDSB, LLOY, HMSO or AV. or any number of other stocks depending on attitude to risk.

[skinny] 29/6/2020 10:39

MCL had their accounts frozen this morning.

[spectoacc] 29/6/2020 10:24

Housing market is going gangbusters atm, but I don't doubt much of it is pent-up demand, & unemployment is going to resolve it soon enough.

@CC2014 - had to chuckle at your AMGO/NSF/MCL "guesses" - have you seen the share prices!!

[cc2014] 29/6/2020 10:19

My sense is that businesses will want to squeeze any costs they can find and rents whether retail, office or warehouses are going to be under pressure. This will include government expenditure too.

I feel it's going lower but it's going to be a slow drip drip process as bit by bit the excess cash floating around right now gets pulled in. Until most of the excess liquidity has been absorbed share prices generally won't fall to outrageously distressed levels

I'm guessing the sub-prime market will be the first to go. AMGO, NSF, MCL.

That's a truly terrible figure on new mortgage approvals today. Cheap low cost debt without decent security is coming to an end.

[essentialinvestor] 29/6/2020 10:07

Increasing COVID case numbers in the US have unsettled some of the cyclicals.
In one state there were 80 positive cases traced back to just one restaurant
which had recently reopened.

[spectoacc] 29/6/2020 09:18

Agreed, feels like it's got lower to go, the INTU news etc, no rent recovery action until at least Sept, tenants getting more bold.

Interesting article in the ST about how the great leisure reopening on Sat 4th July won't include: gyms, trampoline parks, soft play, bowling alleys. No date at all yet for those & others.

[essentialinvestor] 28/6/2020 15:12

CC, fair point re nil cost options.

There will be a very nice opportunity here imv, If you can get your timing
anywhere near right.


SP got down to around 16 pence during the financial crisis,
doubt we will see that level again, into the high to mid 20's would not surprise me
as mentioned a couple of months ago- very much just a guessestimate Only.

[spectoacc] 28/6/2020 10:38

"I have regrettably come to the conclusion over the years that large numbers of quoted companies are not run for the benefit of shareholders. The situation is getting worse and worse."

Perhaps going off topic, but agreed - got quite a bit worse when AIM came along, but evidence of it all over.

First change that needs to happen is with nominee a/cs - very few CREST a/c providers these days, few still holding share certs, but can be a real pain voting a nominee holding. One broker wanted to charge me £25 to vote.

Directors set each other's pay, share options can be daft (Sorrell at WPP; Persimmon), & everything short-term and short sighted.

The one possible exception is family-run firms - but some of those are as bad.

(The temporary doubling of the no-vote placing limit from 9.99% to 19.99% was daft).

[nickrl] 27/6/2020 22:44

Essential Inv Mgr doesn't own any from what i can see but as Schroders are big owners as well as being the Inv Mgr i guess they have skin in the game indirectly. That said the BoD look like they just collect directoriships through the old boy/girl network and take a token stake. This limited director ownership isn't dissimilar to other institutional run funds.

[essentialinvestor] 27/6/2020 15:43

The size of director holdings here are skinny.


The Manager has run this since 2004 (from memory). Does he hold a single share?.

[nickrl] 27/6/2020 13:09

Essential, i hope not as that will required me to make a decision on selling or topping up. These are perplexing me as whilst they have 25% retail so do others which seem to be doing better. They took 74% rent in March but i suspect it will be lower in June as others will undoubtedly rake advantage keeping cash in the bank without a threat of action.

My estimate is there running costs may slightly reduce to 5.6m (asset mgt fee should be slightly reduced with lower NAV but looks like void rates will be up due to a rebate in last years a/c's so say £6m. Finance costs should reduce to 3.2m so c£9.2m nett running costs. As i say i reckon NRI will be down to less 2/3rds for the year nominally 16m so should leave c6m which i believe has to be paid out under REIT rules although i wouldn't expect them to use the cash in hand.

[skinny] 27/6/2020 06:56

Using Investigate's 'advanced search option(an oxymoron it seems);

returns for "Director/PDMR Shareholding"

and

for "Director's dealings".

[essentialinvestor] 27/6/2020 00:59

May get a test of the 30 pence area next week?.