Schroder Real Estate Inv... Share Discussion Threads

[skinny] 11/2/2022 13:57

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[shieldbug] 11/2/2022 13:04

Sorry but where do you find these Ex-div dates? 23 June 2022; 28 July 2022 - Really?

[skinny] 11/2/2022 12:15

A couple of links :-





Ex Dividend Date 2 December 2021; 24 February 2022; 23 June 2022;
28 July 2022

[shieldbug] 11/2/2022 12:07

Are we going to have to wait until week commencing 28th for dividend announcement? Its been a bit all over the place over the past year.

[skinny] 11/2/2022 12:05

Thanks nickrl.

[nexusltd] 11/2/2022 11:52

Great result in asset management and then disposal. As nickrl #1665 moots, possible opportunistic sale. In 30/09/21 report gearing was c.34%. SREI borrowing costs are lower than the average @2.6% p.a., for a weighted loan term of 12.5 yrs. We can expect the £13m to be re-invested at a higher yield. Question is which asset type? What would you choose?

[skyship] 11/2/2022 10:38

Following today's office sale and also the Industrial purchases back in November, the sector allocations I would suggest are now:

Office - 27.7% (31.8%)

Industrial - 46.1% (42.7%)

[shieldbug] 11/2/2022 08:52

I think there is good reason to believe office space will continue to be lost to other uses. Companies wanting to encourage staff to work in offices will need to improve their office space and this includes de-densification. Social media is rife with WFH extremists and this skews perception that "everyone" hates offices.

It looks to me as though EPIC can't wait to dump its office portfolio (around 10% of total). I am sure it has been a tough market for office space but investors should be forward looking.

[skyship] 11/2/2022 08:49

Likewise - thnx Nick.

Disappointing that we have to wait for w/c 28th Feb for the Dec'21 NAV. I had it pencilled in for the same day as the last 2yrs - ie next Monday.

[madmix] 11/2/2022 08:47

"And how much store should we place on NAV in general, if properties can achieve such premiums when sold?"

Don't forget that EPIC recently sold some offices below NAV. However, they were a keen seller looking to refocus on other assets.

In this case it appears to be an opportunistic sale to a keen buyer.

[spectoacc] 11/2/2022 08:39

Thanks @nickrl, interesting.

[nickrl] 11/2/2022 08:37

Its a pretty modern office block with good energy rating so be surprised anyone would want to develop it although has a big surface car park. Part of one floor is being marketed at 22psf so across the building that would imply the rent is worth about 20-25% more than sale yield.

Wonder if they were approached or were discreetly marketing the building but certainly a stonking uplift and certainly confuses the view on whether offices are the new retail or not.

[spectoacc] 11/2/2022 08:17

Fair point, but possibly a development sale? ie correctly valued as an office, but someone wants it to develop. Just speculating tho, having seen EPIC's offices down-valued.

SREI seem quite good at this sort of thing.

[llef] 11/2/2022 08:15

re "GBP13M NOTTINGHAM OFFICE DISPOSAL ACHIEVED AT 39% PREMIUM TO VALUATION"

thats remarkable!
How do you sell a regional office at a 39% premium in these markets?
And how much store should we place on NAV in general, if properties can achieve such premiums when sold?

[speedsgh] 11/2/2022 07:49

£13m Nottingham Office Disposal -

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has exchanged unconditional contracts to sell The Arc, a 44,602 sq ft office in Nottingham. The disposal price represents a 39% premium to the 31 December 2021 independent valuation of £9.35 million and reflects a net initial yield of 4.5%. Completion is scheduled on 28 February 2022.

Situated on the edge of Nottingham city centre, the Company acquired The Arc in August 2018. The asset produces a net rent of £622,210 per annum with a WAULT of 1.7 years. Based on the disposal price, the asset has generated an ungeared total return of 12.1% per annum since acquisition, compared with the All Property MSCI Benchmark for the same period of 5.4% per annum, and MSCI All Offices for the same period of 3.5% per annum.

SREIT will announce its unaudited Net Asset Value as at 31 December 2021 during the week commencing 28 February 2022.

Nick Montgomery, Fund Manager of SREIT, commented:

"This sale demonstrates our ability to leverage the expertise of sector specialists to generate strong returns for shareholders. Having completed our business plan for this well located asset, we see attractive opportunities to redeploy the capital which, alongside the Company's pipeline of ongoing asset management activity, should support SREIT's ambition to deliver a progressive and sustainable dividend."

[skyship] 09/2/2022 08:28

2wild - however your purchase well timed!

[skyship] 09/2/2022 07:59

Actual stats:

# SREI @ 54.2p - discount (historic Sep'21) 17.6% - discount (prospective Dec'21) 21.9%

# AIRE @ 79p - discount 12.6%

2wild - your estimates very wildly out!

Also SREI dn 4.7% from the 56.9p spike

[pavey ark] 08/2/2022 20:05

2wild, I hold both but not sure you are comparing apples with apples here.
Quite a few differences between SREI and AIRE.

"Estimate SREI now 2.5 times wider discount compared to AIRE."

Have you got your estimated figures to hand ?

[starpukka] 08/2/2022 19:58

What's the discount to NAV now after today's drop ?

[2wild] 08/2/2022 16:45

Quite a bit of selling here today, down about 6% in around 2 weeks. Added at 54.165p after selling AIRE at 78.66p. Estimate SREI now 2.5 times wider discount compared to AIRE.

[shieldbug] 04/2/2022 13:41

At the turn of the year Witan IT held SREI as 1.1% of its portfolio. Morningstar show Witan as by far the largest shareholder in SREI at 9.4% of the company.

Is this a direct investment by Witan or a pick from one of their managers I wonder? A quick read through their extensive portfolio suggests this might be their single Real Estate investment.

[my retirement fund] 02/2/2022 22:03

Everyone needs to be topping up here whilst they can these levels won't be around forever imo

[nickrl] 02/2/2022 18:48

Sky my take is we ought to get 8-10% uplift on industrial worth about 4 to 4.5% towards NAV and maybe 3-4% on retail add another 0.5 to 1% on NAV with no contribution from offices so 4.5-5.5% range or 68.8 to 69.4 is my pitch.

[shieldbug] 02/2/2022 17:37

Thanks for sharing that Skyship. Nice margin of safety.

[chucko1] 02/2/2022 16:17

It's looking that way, but it seems to mean nothing to the continuing seller(s).