Schroder Real Estate Inv... Share Discussion Threads

[skyship] 16/12/2021 10:26

No, none whatsoever IMO. So added at just under 51p yesterday. Now at 10% allocation - usually my MAX.

[flyfisher] 16/12/2021 10:18

Is there a reason for this to trade at a greater discount than SLI ?

Higher dividend, bigger discount, higher GRESB score in SREI. With similar investment spread.

[nickrl] 15/12/2021 14:30

Both have same office levels but guess SLI's industrials exposure is keeping it propped up

[skyship] 15/12/2021 13:29

A bit of a valuation gap opening up between SLI & SREI:

SLI @ 77p: Discount = 17.3%; Yield = 4.64%

SREI @ 51p: Discount = 22.5%; Yield = 5.69%

[cwa1] 06/12/2021 17:21

A pocket money purchase from one of the directors today...

[cwa1] 02/12/2021 08:24

XD today, pay day 17/12, so not long to wait :-)

[flyfisher] 02/12/2021 07:11

''The team have checked the detail and I am afraid you spotted a typo. It should have read £28.7m rather than £28m which I think is a hangover from the last report date.

Many thanks''

[nickrl] 24/11/2021 17:37

flyfisher good observation and I see in the presentation the Sept 21 rental income is quoted as 28.7 not 28m with a forecast post latest acquisition as being 30.2m so ive raised it with SREI.

[flyfisher] 24/11/2021 11:04

Why has annual rental income declined from 28.3m at 31st march to 28m at 30th sept.
With the positive updates i would have expected an increase.

[mirandaj] 24/11/2021 10:58

Nothing that is not known in above but picked up.

[cwa1] 24/11/2021 10:00

Yes, thanks for that nickrl. Not sure who downticked you for that helpful link but have an uptick from me to even it out ;-) As you say Sky, no surprise there that it was SD that withheld payment. I note it says...

repaying majority of historic rent arrears

[skyship] 24/11/2021 09:04

nick - thnx for posting that link. I see it was Sports Direct who withheld the rent & have now coughed up. No surprise there then!

[nickrl] 23/11/2021 21:14

Stanley Green picked up for 17.3m 10mths ago now worth 20.3m at Sep 21 and presumably will go higher once the development is complete although if this level of rental deal keeps going through

"a five year lease renewal completed with Factory Kitchens for a 2,859 sq ft unit at a rent of £40,026 per annum, or £14.00 per sq ft. This compares with the previous rent of £8.75 per sq ft and represents an uplift of £15,010 per annum, or 60.0%. This compares with the average rent across the trading estate of £6.32 per sq ft"

valuation can only go higher.

City Tower trending water but at least we only own 25% of it.

At the cash level dividend is easily covered and with recent additions plus positive lettings ought to allow another 5-10% uplift in six months.

Edit

Todays presentation hxxps://www.schroders.com/en/sysglobalassets/uk-campaigns/sreit/sreit-interim-results-presentation-23.11.2021.pdf

[cwa1] 23/11/2021 17:11

Well if nothing else there was solid volume today and hopefully a few crumbs from any loose sellers table have been mopped up. Would be nice to see whoever keeps leaking stock out drying up though

[chucko1] 23/11/2021 10:55

As I see it, the seller is still keen. The offer is pitched about 4% higher than that of 2 days ago and 5% higher than early last week. Given today's update, I would expect the selling to have sped up, taking advantage of an increase in buyers (all buying at offered side).

Right now, you can sell any size at above the bid, so it seems the buyers are not running out of desire.

[scottishfield] 23/11/2021 09:40

I have done so this morning kenmitch.

[kenmitch] 23/11/2021 09:39

What a churlish share price reaction to a 9% increase in NAV and 7.5% dividend increase. Share up just 2%. Tempted to add.

[spectoacc] 23/11/2021 08:28

Agreed - the large qtly NAV increases will likely moderate, but we're still in the foothills, particularly with the way inflation's currently going.

All that, with a discount.

[flyfisher] 23/11/2021 08:22

There are several asset management actions that have yet to flow through to the bottom line.

Investment management fee reduction is yet to fully show through - £660k rental increases, £8m planning approval with additional rental income, another £200k rental increase, £20m acquisition, 1.5m fixed rent increases and the Q4 increase in rent collections to 98%, from 92% at Q2.

It looks like a couple of years of steady dividend increases.

[chucko1] 23/11/2021 07:52

Dividend cover of 127% and seemingly stable inflows give this an earnings yield of effectively 7.2%

FWIW, discount now back at over 20%. This will not last.

[cwa1] 23/11/2021 07:44

Satisfactory. Happy with that. Pity it is being released in to a "soggy" market this morning but conveys a positive message throughout and quality will shine through over time if they can keep this up

[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/