Schroder Real Estate Inv... Share Discussion Threads

[flyer61] 18/12/2020 09:28

This new site is very cramped! No parking to speak of. That being said it has a vast (relatively wealthy) catchment area on it's doorstep. Will watch with interest the development of the bare land. Lot of competition from Manchester Airport which is just down the A555.

[frazboy] 18/12/2020 09:06

"The 3 purchases takes the LTV up to 32%."

The target leverage ratio is stated as 25% to 35% so corporate activity may be a bit more limited from now on - the Canadian loan has a covenant at 65% so I'm not sweating yet.

[skyship] 18/12/2020 07:38

hs - the cost of the buybacks so far is just under £6m. Plenty of cash to continue with that programme, as they have confirmed.

[spectoacc] 18/12/2020 07:16

Wow another one this morning! SREI are busy. The "Site" seems more interesting than the industrial park:

"The Site comprises a 3.4 acre, regular shaped and serviced plot which is currently non-income producing. The apportioned site price is £2.85 million. The Site has a historic planning consent for 48,000 sq ft of trade counter and warehouse space and is allocated for industrial development in the local development plan. As with other industrial assets owned by the Company such as Stacey Bushes Industrial Estate in Milton Keynes, the strategy is to obtain an improved planning consent and develop a high quality trade centre and warehouse units during 2021"

The 3 purchases takes the LTV up to 32%.

[hindsight] 17/12/2020 20:00

Seems good investment to me. But doubled edged sword for share price as may mean less cash for buybacks.

[skyship] 17/12/2020 17:41

17/12 - 357k bought in @ 36.43p (36.10p - 36.55p)

[spin doctor] 17/12/2020 14:23

Duplicate post...

[spin doctor] 17/12/2020 14:23

Yes re: the sellers, tho I am not sure I am that bothered. Key for me is the market view in (say) Summer 21 of sustainable eps.

[skyship] 17/12/2020 14:06

Flagon - thnx for the edit - got it!

Personally I don't understand why SREI's brokers aren't going to the tap seller and offering to take him out. Seems like the obvious thing to do....as they did back on 1st October when they took out a single seller of c.2.8m

[spin doctor] 17/12/2020 13:22

Ongoing modest share buyback alongside selective deployment of cash into at least relatively secure assets. Against that are huge macro headwinds, and valuation falls that are IMV almost inevitable through 2021.

But the margin of safety appears substantial and I've taken some more.

Liquidity decent and spread small, which compares well to some others.

The share price status quo perhaps to be broken shortly by Brexit news.

[spectoacc] 17/12/2020 12:28

Pushes LTV to 29%, but fine in the scheme of things. The low site coverage was interesting - SREI have plans I bet.

[hugepants] 17/12/2020 12:24

A net initial yield of 8.2% for an industrial estate looks very good in this market. It also improves the portfolio mix. Industrial should increase to about 33% and offices decreases to approx 37%

[flagon] 17/12/2020 11:08

Edited post #1208 as 1st link wasn't clickable.

[frazboy] 17/12/2020 10:50

Thanks for the background info Flagon, v useful

[skyship] 17/12/2020 10:50

Flagon - thnx for that; but the first more relevant link doesn't seem to work - not for me at least!

[flagon] 17/12/2020 10:33

Langley Park sales brochure ...

Link :

Then click on PDF brochure



These are the sellers ...

MAS Real Estate Inc.

Link :

MAS are selling off their Western European assets and focusing on Central & Eastern Europe.

Langley Park specifically mentioned here ... scroll down to P16.

Link :

[frazboy] 17/12/2020 08:26

Yep, that asset should add ~0.2p to the dividend, on its own, given the marginal cost of the funding, if needed, is nigh on zero. Just management fees etc to deduct from the annual rent roll.

[spectoacc] 17/12/2020 07:23

A very solid acquisition announced this morning..

[flyer61] 16/12/2020 21:40

Bought a few at 36.8. Going to try and trade them over the next two days.

[skyship] 16/12/2020 21:13

16/12 - 586k bought in @ 37.02p (36.75p - 37.30p)

[skyship] 15/12/2020 17:53

15/12 - 385k bought in @ 36.86p (36.55p - 37.40p)

[skyship] 15/12/2020 15:39

IMO they've been rather parsimonious with the buybacks since the Interims 4 weeks ago back on 17th November. So far just 2.249m bought in at an average of 37.4p. Cost £841k; addition to NAV £510k = 0.1p/share.

I suppose there are fewer large sellers to pick up as the Markets have recovered.

[essentialinvestor] 15/12/2020 14:20

It's again notable the office sale is around NAV.

Values have not fallen far, which would allow SREI to swoop in and buy elsewhere with

their very large cash holding.

[skyship] 15/12/2020 14:12

Wonder how long this whipsaw is going to play out - quite profitably as it happens - covered bear in the 37s and recovered in the 36s. Playing for small amounts; but mounts up...


free stock charts from uk.advfn.com

[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.