Schroder Real Estate Inv... Share Discussion Threads

[spectoacc] 08/9/2020 06:57

I don't trust Schroders as far as I can throw them, particularly after they took over WPCT/SUPP :)

You'd hope the Board would have something to say about it but.....

[flyer61] 08/9/2020 05:58

OK HP's so they buy another quarter share in the building. I don't trust anybody. When a small fund has a lot of cash which a much bigger organisation ultimately controls as a shareholder I will be watching closely...

[hugepants] 07/9/2020 22:00

Lol you guys cant be serious. That would mean 40% of the portfolio is a single property.

[spectoacc] 07/9/2020 20:04

@Flyer61 - very good point. Probably simultaneous with a letting, but still.

[flyer61] 07/9/2020 18:05

We had better keep an eye out for SREI buying the large portion it doesn't own. Wouldn't put it past Schroders to dump the building into one of their funds...particularly one that has the cash.

[essentialinvestor] 07/9/2020 17:37

It appears funds managed by Schroders may own the entire building.

SREI have a 25% stake.

In the recent SREI Annual Report they say 20%
of office space (by rental value) at the Tower is vacant.

Improvements are underway, showers, bike spaces.

If 20% of the space was vacant pre COVID, those improvements are warranted.

[hugepants] 07/9/2020 12:52

The Tower Manchester is where SREI's largest tenant is located; University of Law -which is 6.1% of rent. I'd guess a strong tenant covenant.

[essentialinvestor] 05/9/2020 18:47

Would expect The Tower Manchester may weigh on NAV until
COVID is no longer a significant concern.

I've become a lot more cautious on medium term London office prospects over
the last couple of weeks.

There might potentially be some redevelopment opportunities across
the SREI portfolio, possibly Luton Galaxy as future residential.

[spectoacc] 05/9/2020 17:38

EPS of minus 55p in the 2009 Report on (mainly) a massive revaluation :)

NAV 43.8p.

LTV 55.8%, or 43.2% "..Net of all cash and following post year-end sales".

Covenant was at 60%, so they sailed close to it before the disposals. Interest cover looked fine, but who knew which way that would go in 2009.

"The Group has three non-recourse joint venture investments
which are carried at nil value following declines in the value
of the underlying property investments."

Made me think of SREI's current largest asset, the 25% share in City Tower, Manchester.

Edit - by the Sept 2009 Half Yearly, LTV 58%, tho 43.6% ex cash (which is the figure we're all looking at now after all).

[essentialinvestor] 05/9/2020 17:32

You can still read the 2009 report on their website.
The Trust was run by another Manager then.

Remember you are looking at the UKX (as one example) around 3,500,
so wider equity valuations were markedly different.

Around a 42 pence NAV per share.

[spectoacc] 05/9/2020 17:22

D'you remember what the LTV was at the 2009 low? I remember some property ITs going into the crisis with 60% LTVs - several of whom didn't come out the other side!

Good point tho - cheap can always get cheaper.

[essentialinvestor] 05/9/2020 17:20

Moritorium could be in place for another 6 months, would not surprise me.

What the market wants is certainty and clarity. So HMG could say another
2 roll overs, with a line in the sand drawn in advance on it's ending.


The great financial crisis low in SREI was approx 13 pence a share,
the NAV, from memory, did not get below 40 pence a share.

I dont think any conclusion can be drawn there as in early 2009 wider equities
were dirt cheap, that is not the case now.

The share price at that low was selling on Less than 2.5 years of dividend payments.

With the advantage of hindsight that's about as close to being offered free money as it gets - but as often happens, the very best prices are usually when it's incredibly difficult to make yourself buy.

[spectoacc] 05/9/2020 16:13

26.75 - 27.65 the low quote on Friday, AT traded at 27.65 off the offer. Would have needed to be quick to get any O trade away tho..

Either moratorium extends like it did for resi, or there's a flood of CVA's coming. Or both.

[essentialinvestor] 05/9/2020 12:19

Posted here a few months back my gut call was SREI would make a low circa mid to higher 20's. Had in mind around 27-28.5 pence, which the share price touched the higher end
of yesterday. Unless we are facing something extraordinary, much below that would surprise me.

My best performer this week has been CLS, which are about 100% office, their collection %'s have been exceptional to this point. Thanks to konrad on the SHB board for alerting me this.

Moritorium announcement shortly, even if this rolls over again, hopefully a definite
end date is clarified. Sector needs this for confidence.

[spectoacc] 04/9/2020 19:13

A cheeky low on it today, looks worse in candlestick, but broken down either way.

50% discount seems to be the new norm, perhaps not unreasonable the way values are going (CAL well worth a look today - different beast but a 16% fall in 6 months). Feels harsh when LTVs aren't the problem they were in 2008, SREI being a prime example.

Good job SREI made all those disposals in 2019.

Edit - CAL: -- "Net Asset Value per share and EPRA NTA per share, at 229p and 236p respectively (December 2019: 361p and 364p respectively)".
And you still wouldn't!

[skyship] 04/9/2020 14:07

Taken another nice turn in SLI; but all the good work being undone by the bizarre fall here yet again - now at a full 50% NAV discount!!!


free stock charts from uk.advfn.com

[essentialinvestor] 02/9/2020 16:09

HP, there looks no issue on liquidity here imv.

Very worst case they issue shares below NAV, however don't think

we will get anywhere even near to needing that.

It's very well managed and Duncan is staying on as an advisor.

[essentialinvestor] 02/9/2020 16:05

Yes support again at the previous level.

Naughty price action today in SLI, managed to get 8,000 shares. Difficult to buy
many on the drop.

[hugepants] 02/9/2020 15:24

Discount to NAV is 48%. Yield has been reduced but its still 5.25%. LTV is what 24%? They have massive headroom on their covenants (can withstand a further valuation fall of 51% and a 66% decrease in net rental income). Portfolio is 30% industrial which is reassuring. Even the 40% office portfolio looks OK with a third of the 40% being tenated by 2 universities and the Secretary of State (not looked at rest of office portfolio). 24% of the portfolio is retail and concentrated in supermarkets, convenience stores and retail parks. eg 40% of the retail is retail parks which seem to be doing pretty well just now. They have no shopping centres.

[cc2014] 02/9/2020 14:09

It's just about hanging on at support. Hard to call. There seem to be some buyers left yet at the support level for now.

It held up well yesterday on a bad day on FTSE, yet is struggling a bit today on a good one.

HMSO seems to be the place today. It seems no-one knows how to price the rights issue/stock consolidation. Have to say I'd crossed that one off my list as too many shopping centres for my liking

[essentialinvestor] 02/9/2020 13:02

May be moving in to a lower trading range, IF no bounce from this level.

[essentialinvestor] 02/9/2020 01:08

bt, thanks.