Schroder Real Estate Inv... Share Discussion Threads

[skyship] 20/3/2021 13:59

CC - so not a conventional deal matching? What then please?

[cc2014] 20/3/2021 08:38

Triple witching = options expiry for those not familiar with the term

[cc2014] 20/3/2021 08:36

Triple witching

[skyship] 20/3/2021 08:11

This past week there were buybacks every day except Tuesday.

TOTAL: 780k @ c40.68p

Uncrossing trade at the close for 1.126m @ 40p. Tap cleared?

[skyship] 13/3/2021 08:35

12/03 - 160k bought in @ 40.92p (40.6p - 41.0p)

[spectoacc] 12/3/2021 14:41

A lot of the fun seems to have gone out of the small property REITs now. Perhaps the balance btwn impending end of lockdown, ongoing rent recovery ban, uncertain retail. Hopefully they're all just consolidating for a while, before another move up. Plenty of room in the NAVs of all of them.

[frazboy] 10/3/2021 17:30

BB programme is currently capped at 41p it would seem, so kicked in a bit more aggressively today. Not sure if the markdown in the share price coincided with the news on the eviction extension, but I had assumed that was already priced in.

[spin doctor] 01/3/2021 20:39

Continuing share price progress - shrugged off going ex-div last week.

[skyship] 24/2/2021 18:11

VERY interesting, to me at least, as the BoD agrees with my earlier post re continuation of the buyback scheme:

24/02 - 169k bought in @ 40.94p (40.7p - 41.0p)

[kenmitch] 18/2/2021 08:53

hindsight.

That’s true now but that’s because of the recent SERE share price fall which is probably partly because of Sterling stronger and the recent disappointing news about one of their fashion tenants at their Metromar shopping centre in Seville exercising their lease termination right. Before those two negatives the SERE share price performance was much better.

But that’s my point. The share price can take care of itself (both up and down) in reaction to good or bad news, and without the need to resort to buybacks. And if the NAV discount gets too wide, canny investors on The Commercial Property Thread tend to point that out, and others notice for themselves and the discount can narrow with increased buying.

At present both SERE (not buying back) and SREI NAV discount are shown on aic website at 34%. I find aic to be better than Trustnet and it’s exclusively Investment Trusts.

[hindsight] 17/2/2021 18:20

Kenmitch, not so sure there is much in them in performance now sere has fallen back

[kenmitch] 17/2/2021 12:58

Yes chucko1. I’ve corrected it now.

There’s nothing to stop the discount to NAV actually widening even if they buyback a lot more shares. Or narrowing when they buy back and then widening again.

Is that money really better spent on buybacks than on bargain priced properties as any become available? It’s a buyers market.

SREI share price performance is disappointing compared to SERE which I also hold.

[skyship] 17/2/2021 11:23

Agreed - buying at anything over a 25% discount is highly accretive.

[chucko1] 17/2/2021 10:47

Anyway, that's about 1% NAV rise for 10% of the cash balance. So 10% NAV rise if they use it all (kind of). Meaningful.

[chucko1] 17/2/2021 10:45

Do you mean 58.8p instead of 58.2p?

[kenmitch] 17/2/2021 10:18

nickrl

I agree that a much better use of the money wasted (imo) on buybacks would be to add it to the £40 million in cash and undrawn debt facilities earmarked for potential acquisitions. There are distressed sellers around!

The latest £4.5 million spent on buybacks has reduced NAV by just 0.6p! i.e to 58.8p instead of 58.2p.

[sphere25] 16/2/2021 12:54

Abit more interest here with 1.579m and 1.6m buy prints at 40.25p. More like that and it might even have a chance of pushing on from here.

On the whole, it's very quiet out there.

*Taps screen to make sure it is still working*

All imo
DYOR

[frazboy] 16/2/2021 10:07

I haven't been paying too much attention to the BB (ceiling at 40p as implied by the last posts?), but having just quickly checked the totals purchased since last September I note that the company has bought back about 23m shares, or 4.5% of the equity outstanding at that time. That in itself should have resulted in an equivalent increase in the dividend. Could be another 5-10% upside in the dividend payments in the next 6-12 months, perhaps? Would take the yield to around 6.7% @ 40p. Like Sphere I was quite happy trading this with a small core holding, but it's now the other way round. Still looks good value to me, fingers crossed that office demand holds up.

[frazboy] 15/2/2021 18:27

Wasn't the BB.

[nickrl] 15/2/2021 17:36

Sky rather it was investor as they should keep the cash now for investments

[skyship] 15/2/2021 16:04

Sphere - indeed - 1,000,000 bought @ 40p. Hope that proves to be a buyback...

[sphere25] 15/2/2021 15:02

1m buy print just gone through. It is taking a substantial amount of buying to shift this one through that pesky 40p mark with the price still stuck atm.

The updates appear to be getting more bullish with the dividend now looking more sustainable:

"This dividend level is anticipated to be fully covered by recurring net income, with further net income growth potential from asset management and further new investment"

I guess "anticipated" isn't the full deluxe package of reassurance, but it sounds encouraging. A yield anywhere around these levels is clearly favourable atm. Never invested in REIT's in the past, but getting quite drawn to them recently, and happy picking up dividends. Picked up the AIRE dividend last week and PRSR goes ex-dividend this Thursday too.

Suspect more of an allocation will be headed into them in future years. It's alot less drama than other strategies - practically a holiday! :-)

A mix to include more yield must naturally develop as we age too.

Looks like more substantial buying volume needed here atm if you're looking beyond this as an income play of course.

All imo
DYOR

[brwo349] 15/2/2021 11:01

6.5% yield

[brwo349] 15/2/2021 10:57

super yield now