Schroder Real Estate Inv... Share Discussion Threads

[deanowls] 22/4/2021 11:11

Stop buying then shield bug.

[frazboy] 22/4/2021 08:36

Is that because there are trades going through in the background (market makers accumulating from a third party) that are registered on the book later? I see what you describe quite frequently and am equally perplexed.Does anyone know the reason?

[shieldbug] 22/4/2021 08:19

yesterday I made 3 consecutive buys of equal amounts in 3 separate accounts. There were no transactions recorded in between that I could see. On each occasion I bought the price dropped.

Added again this morning.

[chucko1] 21/4/2021 15:55

Sphere, I reckon your analysis is about as good as anything else I have read on this. I suppose I will add a few more the cheaper it becomes versus its "peers" (which has been happening increasingly the past few weeks).

[cwa1] 21/4/2021 13:59

I guess somebody must've breathed...

[sphere25] 21/4/2021 12:15

Nobody breathe!

This might finally be breaking out, just stuck its head over 42p.

Nibbled a few more

All imo
DYOR

[chucko1] 21/4/2021 08:51

This is the big value play - those property funds are forced to flog decent stuff at garbage prices and seemingly in large size, so the REITs still have some feasting to do.

SUPR benefitting massively from this. I would like to see evidence that SREI can do something even halfway as good, though the discount of circa 30% forgives a lot (including being Schroders!!)

[spectoacc] 21/4/2021 06:38

Interesting, sold my residual AEWU yesterday, looking to sell some residual RGL today, hopefully into t/s strength.

This is a good read - 17 months closed, 33% in cash! Simply not fit for purpose, REITs all the way:

[skyship] 20/4/2021 20:03

Sure would - as I sold my residual AIRE toady at c69.6p. Also sold my last RGL today at a smidgeon over 84p.

[dlp6666] 20/4/2021 15:23

Would you say, though, that SREI is a better buy than AIRE, which i think you are also keen on?

[skyship] 20/4/2021 12:43

Finding it difficult to chart this; but convinced we are finally on the move to 45p. At 41.6p the discount is still 29.3% and the yield hovering bang on 6% (2.5p annual divi). They remain a standout buy versus all their peers.


free stock charts from uk.advfn.com

[chucko1] 20/4/2021 11:36

If the seller really has packed in, this has some reasonable catching up to do. This was at 42p when some of the others were 7-10% lower.

[essentialinvestor] 20/4/2021 11:21

Bloody hell, it's moving a bit!. Finally, eh.

[sphere25] 20/4/2021 11:10

Certainly looking better bid than usual with the price currently at 41.4p. If it can clear 41.2p and close above 41.7p then there is a possibility (even for boring ole SREI) to gain some traction and breakout.

All imo
DYOR

[frazboy] 20/4/2021 10:05

Seller gone? Struggling to see the downside here (COVID shock aside) and cannot fathom the discount to peers. Sure, Leeds Headingly Central isn’t great but has been substantially written down over the last 2 or so years. And the Manchester tower isn’t a magnificent asset perhaps but it’s probably okayish. I’m overweight here and happy to be so.

[ec2] 15/4/2021 10:23

Interesting that there was takeover activity in the European Real Estate sector yesterday. I have pondered for a while on the idea that if the SREI manager sees the most efficient way to invest excess cash is to buy their own shares as apposed to buying properties, then likewise the same thinking would apply to other investors looking to increase their property exposure. A big institutional investor could simply bid for the entire share capital and get the complete property portfolio on the cheap. Depends on how much of a premium over the current share price it would take.

[skyship] 14/4/2021 13:33

frazboy - this from the Feb'20 RNS when they announced a major increase in the qtly divi:

"The unaudited quarterly NAV as at 31 December 2019 was GBP321.4 million or 62.0
pence per share ('pps'). During the quarter the Company completed a major
refinancing that incurred costs of GBP27.2 million. The refinancing generated an
immediate interest saving of GBP2.5 million per annum that will be paid to
shareholders as an annualised 19% dividend increase to 0.7715 pps with effect
from the forthcoming dividend to be paid on 13 March 2020."

So a return to the 0.75p level x 4 for a 3.00p dividend has to be a possibility - a prospective level for 2022 perhaps - all being reasonable on the Covid front of course.

A 3.0p dividend would provide a 7.4% yield at the current 40.5p

[frazboy] 14/4/2021 09:30

Splitting hairs a bit Skyship but I make it ~£27.5m although I'm not sure if I've correctly adjusted for the Sheffield office disposal (was it receiving any rent following Aviva's departure?). Churned through the latest AR and half year report again last night - having done so I can't see why in the next 12/18 months we won't be receiving a 3p dividend.

[skyship] 13/4/2021 20:11

Specto - annual rental income is c£27m - so agreed, that is quite a chunk coming down the line - c4% from that one source.

[spectoacc] 13/4/2021 19:08

Easy to lose track of who's doing what when there's so many to hold in the sector, but a reminder of SREI's small development angle - or not so small, when there's c.£1m/year in rent to eventually be added in late 2022:


"Cheadle, Stanley Green Trading Estate

In December 2020, the Company acquired Stanley Green Trading Estate in South Manchester for £17.25 million, which comprises 150,000 sq ft of existing trade and warehouse accommodation together with an adjoining 3.4 acre, non-income producing, development site.

A planning application has been submitted for an 80,000 sq ft, 11 unit trade counter and warehouse scheme on the development site. The proposed scheme will be developed to a high standard of sustainability performance including targeting a BREEAM Excellent accreditation, an EPC A+ specification and being operationally net zero carbon.

The site had a historic planning consent for 48,500 sq ft and is already allocated for industrial development in the Local Plan. A decision is expected during the first half of 2021 and, if approved, development should commence shortly afterwards with completion targeted for late 2022. The construction contract will be tendered shortly with an estimated total development cost of £8 million. The ERV for the newly developed units will be approximately £950,000 per annum."

[kenmitch] 09/4/2021 09:13

You’re right SKYSHIP and I chuckled(in a good way and not AT your comment) when reading your post. I’m relaxed holding SREI and the others in the sector.Regardless of whether or not they are buying back and whether or not doing so is a good idea, they all look ripe for further gains in time with big and possibly increasing dividends while we wait.

[badtime] 08/4/2021 20:26

Bought some more last week with the purpose of trading ...will be more than happy with 45pHold some for income

[skyship] 08/4/2021 20:04

3.35m traded....& JP Morgan manages to buyback 1386 shares!!!

Will please Ken, but not many others I suspect...

Still, without buybacks, SREI looks to be breaking out....short term target 45p.

[kenmitch] 08/4/2021 18:55

Very pleased with 25% dividend increase from EPIC today, and it’s paid monthly. afaiaa EPIC haven’t bought back any of their shares over the last year. SREI (buying back nearly every day) remains the weakest performer of the Investment Trusts Reits I hold and they pay bigger dividends, although the 9% increase in the SREI dividend was welcome. AEWU and EPIC both pay 10% dividends at my buy prices. The sector still looks too cheap, and perhaps SREI especially so?