Schroder Real Estate Inv... Share Discussion Threads

[skyship] 06/5/2021 15:19

nick - thnx for that - a very positive presentation - shares still cheap and 50p looking baked in.

Especially interesting to hear his positive views on regional offices; and on the success of the buybacks.

[nickrl] 06/5/2021 13:54

SREI were featured on quoted data last week

hxxps://quoteddata.com/weeklyshow300421-nickmontgomery/

City Tower was raised they reckon they have a gameplan now to refurbished the floors and fit out a few of them to make them more marketable. Say have now let one floor. Don't want to be a Regus though.

Board debates regularly whether to buyback or invest didn't give a view as to where its going but lack of buybacks for last few weeks may be a clue.

[shieldbug] 30/4/2021 09:39

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 07:40

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

[kenmitch] 29/4/2021 07:01

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

[shieldbug] 29/4/2021 06:50

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 21:05

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 20:01

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

[brwo349] 28/4/2021 19:57

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

[kenmitch] 28/4/2021 19:23

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 18:57

A good starting point :-

[frazboy] 28/4/2021 18:33

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

[skyship] 28/4/2021 15:16

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 13:43

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 12:11

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

[flyfisher] 28/4/2021 10:34

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

[nickrl] 28/4/2021 10:32

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 10:18

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 09:53

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 07:22

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 17:01

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 15:44

We certainly agree there...

[chopshs] 27/4/2021 15:03

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

[skyship] 27/4/2021 14:56

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...