Schroder Real Estate Inv... Share Discussion Threads

[skyship] 23/11/2021 07:36

I was looking for 5% in Q£, but we achieved 4.6%. Happy with that, especially in view of the dividend news.

0.726p annualised gives 2.904p; so at 51p the yield = 5.69%.

Debt cost reduced from 2.5% to 2.3%; and LTV slightly reduced to 30.7%.

A very positive statement throughout...

[spin doctor] 22/11/2021 10:03

Yep, that's the one! My post amended.
Muted market reaction; not bothered!

[nickrl] 22/11/2021 09:55

Spin Doctor did you mean to post this link re the Glenbrook acquisition of Valley Rd

hxxps://www.glenbrookproperty.co.uk/company-news/glenbrook-himor-completes-3million-wirral-acquisition/

As it was a JV purchase guess that's £3m each so 6m plus looks like they spent a couple of mil on works so looks like they've done very well out of it albeit SREI have picked it up at a reasonable price and a nice delta on NIY to interest cost.

Looks like lots of small units available for rent

hxxps://www.legatowen.co.uk/property/valley-business-park-valley-road-birkenhead-wirral/

[spin doctor] 22/11/2021 08:40

Well FWIW some detail of the biggest purchase, Valley Road, from Glenbrook. Seems Glenbrook and HIMOR (now Wain Group / Wain Estates) acquired in 2020, and have partly refurbed the site.




Seems like a reasonable acqui with some further potential. Low risk I'd say. Not clear why G/H are selling - either they've crystallised the bulk of the redev premium and want to recycle capital, or there are Corporate aspects I'm not aware of.

[spin doctor] 22/11/2021 08:34

Well FWIW some detail of the biggest purchase, Valley Road, from Glenbrook. Glenb acq

[spectoacc] 22/11/2021 07:32

Interesting acquisitions announced this morning. Anyone know any of the assets? Takes LTV to 34.7%.

[mirandaj] 21/11/2021 16:21

Definitely interesting to see what they do regarding Interim dividend as has been said.

NAV Up 5% or not?



Of interest perhaps dated 11th November:

Property fund managers have warned landlords over the risk of owning stranded assets in real estate portfolios.
Speaking at the Schroders Investment Conference in Edinburgh on Tuesday, while COP26 was taking place down the road in Glasgow, Schroder Global Cities Real Estate manager Tom Walker (pictured) said property owners face sitting on beaten up assets if they fail to ensure buildings meet certain environmental standards.

Walker warned they face hefty capital expenditure bills to make houses, flats and offices greener and being unable to afford to meet legislation could leave them with stranded assets.

The concept of stranded assets in the context of real estate refers to properties that will not meet future energy efficiency standards and market expectations as part of the move to net zero, and might therefore be exposed to the risk of early economic obsolescence.

Capex bill to become greener is ramping up

Legislation to address the issue is ramping up. Under minimum energy efficiency standards (MEES) regulations related to energy performance certificates (EPCs), all rented non-domestic buildings will need an EPC rating of at least C by 2027 and B or higher by 2030.

According to a report by UK real estate stock exchange IPSX and Carbon Intelligence, published in August, 90% of EPCs on the UK’s national register are below a B. The report said this rating could affect how buildings are valued and those falling short could be rendered useless.

Walker told conference delegates the industry has a long way to go to meet these targets and warned some property owners could get caught off guard due to the speed that legislation is implemented and the associated costs.

[nickrl] 15/11/2021 09:21

Sky indeed good to see they've got that site under way quickly and are putting up a climate friendly structure as well as hopefully they will command a bit of a premia.

Not so sure about the Norwich Union Park deal , where they are committing 450k refurb in exchange for 5 years at 142k!

As usual City Tower is jam tomorrow but I guess its all in the price.

[skyship] 15/11/2021 07:10

Great news in this morning's Update:
====================================

Cheadle, Stanley Green Trading Estate (Industrial)

The Company is set to commence the development of an 80,000 sq ft, NZC scheme in early 2022 on the 3.4 acre site adjoining the trading estate, which was acquired in December 2020, after Stockport Metropolitan Borough Council's planning committee unanimously resolved to grant planning permission. The Company will proceed with the speculative development of 11 warehouse and trade units at a tendered total cost of approximately GBP8 million, with a target completion date of Q4 2022. The combined estimated rental value ('ERV') of the units is expected to be approximately GBP950,000 per annum, with pre-lets to be targeted during the construction phase.

[skyship] 14/11/2021 09:24

SREI's video of the Cheadle development (Stanley Green) and others - need to scroll down a bit:

[skyship] 14/11/2021 08:03

Spin Doctor - thnx for the above. Presumably we'll get an update on the 23rd; but hopefully not another example of this Country's parlously elephantine planning processes. Important development projects delayed, even cancelled, by incompetent and under-qualified councillors.

[spin doctor] 11/11/2021 19:12

For info, the Cheadle development planning is not yet determined:



But it is presumably imminent, and frankly looking at the application and the site (see gmaps link below: very brownfield, great tspt links) I can't see why it would be declined:

[shieldbug] 11/11/2021 14:10

Is there news on the planning application?

[cwa1] 11/11/2021 14:01

Not a HUGE fan of buybacks on the whole but I'd be happy if SREI were to go to the seller and make them a ridiculous offer to clean them out! No danger of that just prior to an update though I suppose

[cwa1] 11/11/2021 13:58

Seems to be someone keen to get out and hitting the bid every chance they get. This too shall pass...unless of course they know something we don't :-/

[skyship] 11/11/2021 13:52

Me too - so a pity and bizarre to see them now on offer at 49.51p!

[cwa1] 11/11/2021 13:41

I seem to be replete now Sky, thanks ;-)

[skyship] 11/11/2021 11:48

Sorry CWA - I assume by now you've got your fill!!!

[skyship] 11/11/2021 11:46

Yesterday's Interims from PCTN revealed a 5% NAV gain in Q3 - bang on the average of all the other REITs.

A 5% gain for SREI would deliver an NAV of 66p and a discount @ 50.2p of 23.9%. Too cheap...

[petewy] 08/11/2021 12:22

Thanks Skyship

[rogerrail] 08/11/2021 11:12

CP+ COMMERCIAL PROPERTY THREAD

[cwa1] 08/11/2021 10:37

Do you mean the new thread by BH? If so...

[petewy] 08/11/2021 10:28

What's the epic for the collective site of all REIT with about 10 charts (CPI?)
I've deleted it somehow

[cwa1] 04/11/2021 08:18

Shooosh laddie, I'll never get my fill if you keep harping on ;-)