Schroder Real Estate Inv... Share Discussion Threads

[spectoacc] 15/12/2020 13:17

It's a fair point but as noted - this is how property is done. You could as easily recalculate it when they fail to break after 3 years, or calculate on "what if they go bust after 10 months" (£0). There's a way of doing it, this is it - and set out in black & white.

The rent-frees are better than the capital spending route - start paying rent from Day 1, but we'll spend £200k on it for you first.

SREI doing well in a tricky market.

[essentialinvestor] 15/12/2020 13:00

You cynics )).

The office property sale does look a positive.

[llef] 15/12/2020 09:24

there is so much sleight of hand in real estate, so much deliberate obfuscation.
Look at this from today's update

"Liverpool, Church Street

A new five year lease renewal has completed with Driscoll Kingston Solicitors for 4,912 sq ft at a rent of £49,500 per annum or £10.08 per sq ft, increasing to £66,000 per annum in November 2023 or 13.43 per sq ft. This compares with an ERV of £8.50 per sq ft. The tenant will receive twelve months rent free and a break option in year three subject to a six months rental penalty."

so in the next 3 years, tenants will actually be paying 2/3 of 10.08 per annum, ie 6.72 per annum, not the headline 10.08.
If they exercise the break clause and pay the 6m penalty, they will still end up only paying 5/6 of 10.08 ie 8.40

the headline nos bandied about in this update are just .... farcical!

[cwa1] 15/12/2020 07:53

I like the headline paragraph:-

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT,
provides an update on recent positive activity across its portfolio.

:-)

I'm going to be REALLY worried if they ever make an announcement that is just "ordinary", or Heaven forbid, actually quite bad ;-)

[spectoacc] 15/12/2020 07:16

Solid RNS this morning, this one of several highlights:

"The Company announces that it has exchanged unconditional contracts to sell The
Portergate, a 49,500 sq ft office in Sheffield, to a private purchaser, for £
4.2 million. The buyer has paid a deposit of 10% of the purchase price with
completion due on 5 February 2021. The price is in-line with the independent
valuation as at 30 September 2020. The property is 80% vacant by area
following the departure of the previous tenant, Aviva, who vacated in return
for a £1.2 million prior payment to the Company."

[skyship] 14/12/2020 21:09

14/12 - 218k bought in @ 37.26p (Highest 37.45p; lowest 36.85p)

[essentialinvestor] 14/12/2020 11:18

I bought a few this morning but get you rational, luck with that.

[apollocreed1] 13/12/2020 16:30

I sold SREI on Friday on the basis that a no-deal Brexit will be bad for the property sector.

[apollocreed1] 13/12/2020 16:28

Authentic Brands -More money than Sense!

[skyship] 13/12/2020 15:03

Very interesting news which could be a fillip for the property sector:
---------------------------------------------------------------------

Authentic Brands' acquisition spree has accelerated in the pandemic, including snapping up Brooks Brothers. The owner of the historic New York department store brand Barneys is plotting a double takeover of Debenhams and Arcadia Group that would herald an influential new force on the high street.

The American retail powerhouse Authentic Brands is this weekend in discussions with the administrators of both stricken companies.

[skyship] 11/12/2020 21:00

11/12:

# 500k Bought at 37.55p. (Highest price paid 37.55p)

+

# 270k Bought @ 37.33p. (Highest price paid 37.55p)

Yet the share price finished below 37p again...

[skyship] 11/12/2020 11:40

For 90mins this morning it was possible to buy at under 37p. Seems to me that might be a sensible trade with the buybacks now averaging 37.5p.

Short-term chart-wise, a flag developing. The breakout from which usually occurs ahead of the apex - early January in this one so far. Sp seems to be knocking on the ceiling...& the 50day SMA rising fast below in support.


free stock charts from uk.advfn.com

[skyship] 11/12/2020 11:27

10/12: 396k Bought at 37.5p. (Highest price paid 37.65p)

[kenmitch] 11/12/2020 10:13

Whatever the plus or minus buyback points, guess most agree that SREI looks stunning value at current price?

[hindsight] 10/12/2020 17:54

Kenmitch like you I own both and probably brought similar time. But you are not comparing apples with apples due to geographics. Think when physical property was -10% and shares -45% the buy back was clearly better for shareholders
As these shares are held in treasury I imagine they can release them when the discount closes to buy physical

[kenmitch] 10/12/2020 17:32

I hold SERE and SREI and bought both late October.

Excellent update overall from SERE yesterday, with just “small pockets of underperformance,221; along with a second successive dividend increase. Managers express disappointment at the share price performance.

Yet SERE is up almost 50% since late October. SREI is up just 12%.

SERE NAV discount was about 45% when I bought. It is now down to 26%. That is without the “benefit”; of buybacks.

SREI have been buying back but the discount is still 34%.

I know many disagree with my negative views on effectiveness of Trusts buying back and are utterly convinced they work, but don’t examples like this (and there are many others) show that it is right to question whether buybacks are a wise or effective use of spare cash?

[spectoacc] 10/12/2020 16:29

Meanwhile, £ down, oil up hard, BP/Shell doing over 4% each for the FTSE.

[cc2014] 10/12/2020 16:22

Indeed. Earlier in the day the sell-off in banks, insurers, construction and property was significant. ECB additional stimulus seemed to stop the rot although all these sectors are still down on the day some significantly.

[chucko1] 10/12/2020 15:59

I sense growing no-deal Brexit panic out there. Affecting an assortment of things now. Some bad, some good.

[skyship] 10/12/2020 15:38

Makes that midday dip rather surprising. I missed the best of that, but still managed to get 50k under 37p.

[spectoacc] 10/12/2020 15:33

Missed that, thanks.

[skyship] 10/12/2020 15:28

Buybacks again yesterday:

09/12: 400k Bought at 37.4p. (Highest price paid 37.9p)

[essentialinvestor] 07/12/2020 15:09

Nick, CLS acquiring assets again.

[nickrl] 06/12/2020 21:32

EI thing is initially the conditions were ripe for values to fall but govt largess on furlough and other support mechanisms facilitated by BoE QE has significantly suppressed the decline in economic activity that conventionally would have been expected.

The question is have they only delayed the inevitable or not? Ive no real idea but something i was slow to react to was lenders being lenient on covenants and i now believe short of a business in dire straits they will continue to do so as long as interest can be paid. So i now can see this as a key prop under asset prices for the short to medium term.

Hopefully BREXIT uncertainty will give a bit of run back this week so I can pick up a few here.