Schroder Real Estate Inv... Share Discussion Threads

[shieldbug] 30/4/2021 10:39

So at 50p this yields 5% and at NAV of 58p it equates to 4.3% yield. This should still look attractive at 50p.

[flyer61] 29/4/2021 08:40

2.5 pence per annum current price circa 44p ergo 5.68% yield.

[kenmitch] 29/4/2021 08:01

I got the figures from AIC but agree that the correct yield is about 6%.

[shieldbug] 29/4/2021 07:50

Skyship - how do you get a yield of 5.68% at 40p? I make this 6.25% for annual dividend of 2.5p and share price of 40p.

[frazboy] 28/4/2021 22:05

Thanks Skinny,Unfortunately no document I've seen that has been published by SREI provides information on anything other than the top 10 assets, which in fairness do constitute nearly 70% of AUM. You can piece together the next few in the list by analysing previous reports/RNSs but it's tedious. I'll mail IR.

[skyship] 28/4/2021 21:01

I have 2.5p too - so yield @ 40p = 5.68% (edit - SORRY - mis-type, yield @ 44p = 5.68%)

[brwo349] 28/4/2021 20:57

Have srei cut their dividend again. I had it down as 2.5p per annum in my notes.

[kenmitch] 28/4/2021 20:23

One year performance figures, current discounts and dividend yields in order of 1 year performance:-

AIRE + 70% 18% and 8%

AEWU +65% 5% and 8.5%

SERE 58% 22% and 5.1%

EPIC +56% 18% and 7.3%

PSDL +41% 8% and 2.8%

RGL +28% 14% and 7.7%

SUPR +14% 12% and 5.2%

SREI +10% 25% and 4.8%

So SREI has some catching up to do. I hold all of these except PSDL (tempted as recent Berlin rent Court decision removes the main negative but charges too high) and SUPR (that 12% premium along with regular issuing of new shares and less upside than the others make it a no for now).

The bombed out prices a few months ago were a great buy opportunity. SREI at last on the move!

[skinny] 28/4/2021 19:57

A good starting point :-

[frazboy] 28/4/2021 19:33

Sky - do you have a list of all SREI's assets?

[skyship] 28/4/2021 16:16

Just been listening to the presentation on Hardman Talks by Ravi Strikney - CIO of RECI, managed by the vast Cheyne Capital.

Interesting to hear his views on Office valuations:

=== City centre tower-block valuations have fallen; and he sees no way back for those less attractive working and commuting offices

=== Very confident for low rise, less dense offices

ie - the ones CLI own........see the relevant piece in CLI's excellent Finals Presentation. Also SREI & RGL of course.

[hindsight] 28/4/2021 14:43

nickri, cant say the fx bothers me in euro. Think it will roughly track £, main thing is having the assets in the strong euro countries (thats mainly germany for cls), as any bailout money will continue to head back to them eventually like in the past. Yes agree very low interest rate but as they are now increasing LTV they are betting on office values. One comfort is the family holding, doubt they would allow this to be a dice rolling excercise for management fees and would be in agreement on its risk/reward

[rogerrail] 28/4/2021 13:11

no, quite the reverse, its selling assets that don't fit its investment strategy.

[flyfisher] 28/4/2021 11:34

Is NRR selling the best assets, ie pubs, in order to get the debt under control.

[nickrl] 28/4/2021 11:32

hindsight yes high LTV but locked in at v.low interest rate for years although divi too low for me although i suspect its pretty resilient to being cut. There is also teh exchange rate issue here as some of NAV improvement came from FX movement and since then £ has appreciated about 5% but as long as it oscillates around +-5% pa you can discount it I appreciate.

[hindsight] 28/4/2021 11:18

HugePants, understand your point but a bit more to it than just yield. Compare CLI and SREI charts over 20 years. Investing income in asset value growth. Main concern I have with CLI is they have been buying heavily and LTV is now 39%

[chucko1] 28/4/2021 10:53

Given the recovery potential on NRR you state (and I agree), the nature of it implies it will occur over a longer period of time than the further recovery we see in most other REITs. But it may be substantial. My earlier recovery target of 130p is more of a short/medium term target but I think there is a larger prize but this may take years.

On SREI, one could easily have a 50p target within a month, although this is merely speculative. Or 55p within a year, but with the comfort of a 6% div yield a reward for your patience in a nothing percent yield environment.

[rogerrail] 28/4/2021 08:22

Considering you have BCPT on your list I would say NRR is a better bet. Last time I looked NRR was on a discount knocking on 50%. Not without its problems and with the divi suspended, nevertheless given the recovery in the commercial property mkt the upside is substantial, the outlook from the last trading update was on a par with if not better than the REIT sector, there is significant potential for residential development on retail property and the divi has to return eventually. I'm happy sitting on a 45% gain to date.

[hugepants] 27/4/2021 18:01

CLI is 100% offices and yields a miserable 3.2%. Pre-covid the yield was actually less at 2%-3%. No thanks!

[skyship] 27/4/2021 16:44

We certainly agree there...

[chopshs] 27/4/2021 16:03

I also hold CLI Sky. In at 192 back in August. Plenty more to go for :)

[skyship] 27/4/2021 15:56

chops - BCPT has the highest discount on my spreadsheet of 18 REITs/Propco. As you will well know, that rating is due to its high London weighting and high Retail weighting. Hopefully life will be breathed back into London this summer; but the valuation of Christopher Place will likely remain punctured.

Personally I far prefer the 2nd highest discount player on my spreadsheet - CLI. I posted on that one yesterday over on the Commercial Property thread (CP+).

I strongly recommend viewing last month's Finals Presentation - link given on that post. They make an impressive case IMO...

[chopshs] 27/4/2021 15:48

I'm long here since low 30's and am happy to hold for next few months in the hope SREI can get back above 50pAm also long on BCPT which doesn't get much discussion but is potentially better value short term (imo) with a current discount of circa 33% against about 25% here. Any contrary thoughts?

[kenmitch] 27/4/2021 15:05

I agree with both replies and buying at inflated prices (along with wasting it on rubbish choices) is worse use of spare cash than buying back. It’s very likely there will be much better buying opportunities ahead for the likes of SREI. Question is how soon? It could be a good while yet. That’s a reason there’s this clamour from some for buybacks. They want to see cash put to use NOW.

Too much cash on the balance sheet is seem as inefficient too. The ideal (far easier said than done) is very profitable use of cash when there are tempting bargains. That’s far better imo than artificial means of lifting REIT and other share prices.

Investors can be too impatient. I look to buy after big dips and when dividends are therefore sometimes very big. Others look for quick in and out profitable trades and coincidentally perhaps, they are often the ones pestering for buybacks. So buying AEWU, AIRE, EPIC, SERE and now belatedly SREI (along with NRR) near or luckily at their lows last year has worked a treat, with capital gain up to 40% and dividend as high as 13% (for AEWU). The dividends alone make them worth holding, and if we need to be patient, just as SREI and others need to be patient before deploying cash, then so be it.