Schroder Real Estate Inv... Share Discussion Threads

[nickrl] 25/5/2022 19:28

Hopefully that will give us a leg up here no good reason to be faltering so much compared to others.

[cwa1] 25/5/2022 12:59

Notice of Full Year Results

Schroder Real Estate Investment Trust Limited will announce its Full Year results for the year ended 31 March 2022 on Tuesday 7 June 2022.

[chucko1] 18/5/2022 11:28

If my recollection is sound, the latest CBRE numbers indicate a higher rate of increase for Industrials than a decrease in Offices. The increase for Retail Pk is high and also, Retail itself is beginning to rise.

The NAV is backward looking, so even a decent increase might be met by selling on the fact (having bought the expectation). However, recent price action suggests this has already taken pace, at least by one participant. (although as I write this, we have seen a 2% bounce from this morning's low. We have seen other 2% bounces the past 2 weeks with further falls thereafter, but at this level, I will [and have] attack the falls more aggressively).

[nickrl] 18/5/2022 10:57

With nigh on half the portfolio in industrials it should get a reasonable lift up on that element based on others. Offices next biggest element at just under 30% will offset some of the industrials, teh reatil pk element has had decent uplifts already so don't expect much more on that.

The RCF needs renewing next year and has a 1.6% margin to SONIA so will be costing a bit more in interest but more than covered by the income from the recent industrials acquisition. NRI clean of all the varibales should support a divi increase.

My forecast is 2.5-3p on NAV and 5% divi uplift.

[spectoacc] 18/5/2022 10:53

Yes fair point.

[flyfisher] 18/5/2022 09:35

Brei recently reported, Srei has yet to.

Perhaps a more accurate comparison will be made after srei reports, judging from others about a 6% uplift is due?

[flyer61] 18/5/2022 09:19

Toped up this morning. Debt is fixed at an attractive rate and also for a very long time.

[chucko1] 18/5/2022 08:47

Well, BREI has lost 2% from its recent high whereas SREI has lost 11%. I call that a divergence. But also, SLI has lost 8% or so. So take your pick with your statistics. That said, I see a further example of a committed seller of SREI - it seems to attract them periodically. Buying on this weakness has been a notably successful strategy so far.

To buy alongside other REITs, or instead of other REITs is the more challenging call.

[spectoacc] 18/5/2022 08:43

BREI the knock-out NAV performer yet persistently has the largest discount.

Difficult to believe some were at par or premium pre-Covid, and are still nowhere near returning to it (SLI; BCPT).

[hindsight] 18/5/2022 08:40

Not sure they are diverging nickrl, have them at -23.30%, others like sli -24.34, brei -25.86, ukcm -22.17 on spreadsheet here

[nickrl] 17/5/2022 22:38

@badtime not sure why SREI should be diverging from some of its peer group. Have a load of these already for yield but if it gets above 6% will need to consider a few more.

[badtime] 17/5/2022 20:29

Continued weakness

[spectoacc] 03/5/2022 14:10

Not sure anything's changed in 72hrs, the market's schizo. But agree some were ahead of themselves - look at SGRO off 10% today, or BBOX off nearly 9%. Big moves.

Our small REITS (one of which, SLI, reported a +6% NAV qtr just this morning) not overvalued to begin with, aren't particularly Big Box (does a single one own an eg Amazon big box?), and thanks to stonking NAV rises have mainly been getting cheaper as they've risen.

[chucko1] 03/5/2022 10:58

MRF, I am in agreement. Logistics look very vulnerable in the face of the Amazon update and especially the higher overall yields.

That said, the 10% fall the past few days has made it more of a "don't buy" rather than a "short" for my own tastes.

[my retirement fund] 03/5/2022 10:47

30% gearing here, a discount to NAV of 15% and a 5.5% yield, looks pretty safe to me long term, even in a case of a severe down turn.

[my retirement fund] 03/5/2022 10:21

Yes the big industrial box warehousing sectors for distribution has clearly got well ahead of itself, but surely they don't also mean the multi-let estates whish SREI have?

If anything the former has led to a lack of investment and a reduction in the later?

The former looks an excellent shorting opportunity, many of those reits been trading on a premium, have stupid gearing so unsustainable yields, and have simply jumped on a "me too" band waggon. Amazons latest update bears this out, they over expanded and have massive over capacity so won't be doing any more expansion for what may prove to be a very long time indeed.

[chucko1] 03/5/2022 10:21

I am buying some here. Some hangover from logistics REITs getting tanked?

[killing_time] 03/5/2022 10:10

IC article at the weekend saying warehouse sector was running hot and warehouse REIT's were over valued, seemed to be hitting across the hole sector.

[my retirement fund] 03/5/2022 09:49

Looking weak here. Discount to NAV now looking ever more stupid. Is there something going on we don't know?

[nexusltd] 14/4/2022 15:43

@SpectoAcc. Explanation much appreciated. Thanks.

[spectoacc] 14/4/2022 14:59

@nexusltd - is when you hold on extended settlement, eg T25, and roll over to a new T25.

Also possible it's a transfer between accounts - ie between two names in the same group.

Conceivable it's a matched seller & buyer, but the MMs would ordinarily report that as only one transaction. However, the slight discrepancy in size may mean then took the sell onto their books in one size, and sold to the buyer in a new size.

I think the 700k looks the more definite transaction of interest - all good for us holders whatever.

[nexusltd] 14/4/2022 14:02

@SpectoAcc. Could you please explain "cash-&-new".

@AlanPT. Considering 1) the timing, 4secs, between trades, and 2) I'd have thought the market would be very tight after c. 4.4m trade if they were both buys when < 0.5mn trade daily. Could it be a broker to broker transaction, perhaps accumulating for a buyer?

[alan pt] 14/4/2022 13:33

@SpectoAcc Similar but not the same, first one was 4,281,785

Whether they add or balance I have no idea, market mechanics beyond my knowledge :)

[my retirement fund] 14/4/2022 13:15

Huge and at a premium to market value prior. Someone's keen

[spectoacc] 14/4/2022 12:51

I've got 2x 4,280,000, looks like a cash-&-new?

But also 700k earlier in the day at 59.5p.