Schroder Real Estate Inv... Share Discussion Threads

[spectoacc] 12/7/2022 07:18

Interesting, thanks. Presumably a lot of yield compression within that lot, rather than much spend/management? But Milton Keynes really stands out. As do the varying fortunes of Industrial vs Retail (eg no.1 vs no.10). I'd worry about return-to-mean, but much is clearly structural.

[flyfisher] 12/7/2022 07:10

I looked at where the gains have arisen, within the top ten, since 2016.

1 Milton Keynes, Stacey Bushes Industrial Estate £62.8m val £42.1m gain
2 Leeds, Millshaw Industrial Estate 54.9 29.9 gain
3 London, Store Street, Bloomsbury (50%) 42.5 7.2 gain
4 Manchester, City Tower (25%) 40.9 0.3 loss
5 Bedford, St. John's Retail Park 33.3 n/c
6 Chippenham, Langley Park Industrial Estate 27.5 8.2 gain
7 Norwich, Union Park Industrial Estate 25 11.4 gain
8 Cheadle, Stanley Green Industrial Estate 24.7 7.4 gain
9 Leeds, Headingley Central 24 2.8 gain
10 Uxbridge,106 Oxford Road 14.9 3.3 loss

[spectoacc] 12/7/2022 06:38

Agreed, SREI in my Top 4. Again tho, do have some concerns about them all performing this badly before disaster has even struck (be it Russia switching off Germany's gas, the looming October consumer crunch, renewed Covid, or something we can't yet see).

Interesting read:

[skyship] 12/7/2022 06:34

nexus - thanks as ever for your CBRE projections. On a 78.1p NAV the discount rises to 34.1%.

Not as absurd as CTPT's 40%+; but surely still far too high for a quality player like SREI.

[ammons] 11/7/2022 17:52

Great for my pension. Happy to just collect the divi while I wait for some sense to return to the reits

[nickrl] 11/7/2022 17:38

spin agree should be protection but market doesn't buy it although its across the board currently. So yes another nice entry point but I thought that just before the results a few weeks back so topped up then and only see it head lower again!

[spin doctor] 11/7/2022 15:46

Back into these at sub 52. Pretty much the levels of one year ago.

Feels like good margin of safety. Lovely dividend. Sensible active management.

[nexusltd] 10/7/2022 20:15

Applying the CBRE Q2 stats to SREI’s March 2022 portfolio mix.
- Capital growth, end June NAV estimate: 78.1p + Net Revenue before quarter dividend 0.7p + Disposal Portsmouth Industrial 0.33p
- Discount on 52.4p closing 09 July offer a) Capital growth only: 32.9%, b) All: 33.8%,
- Yield 6.1%

[chucko1] 30/6/2022 08:30

At 3.2% yield, not recycling quickly enough is hardly the issue. Could buy Gilts at not much lower a yield.

[nickrl] 30/6/2022 08:25

Great sale as long as they don't run into EPIC problems and can't recycle quickly enough but me thinks they've timed this sale well. Interesting they run out such a comprehensive asset mgt update perhaps trying to counter some negativity against share price Mind you im still not that convinced about teh Starbuck lease seems we are taking most of teh construction risk on a letting that still "conditional" presumably on completion of unit.

[skyship] 30/6/2022 06:34

Presages an encouraging NAV & Divi update in c3weeks time.

[spectoacc] 30/6/2022 06:23

"Southlink, a 26,975 sq ft single let industrial asset in Portsmouth has been sold for £6.5 million. The price compares with the 31 March 2022 independent valuation of £4.9 million and reflects a net initial yield of 3.2%."


3.2%! Hope one of the other REITs isn't the buyer..


And note the rent increases on new lettings of industrial - rent will follow capital uplifts IMO.


"Since 31 March 2022 the Company has completed 17 new lettings, renewals and reviews across 427,121 sq ft. The transactions will generate £2.7 million per annum of rental income and increase contracted rental income by £1.0 million per annum."

"Following the update provided with the Full Year results, two lettings have completed at Langley Park Industrial Estate, achieved at 26% and 31% above the previous passing rent respectively:"

"The next phase of the business plan at Langley Park is the development of new warehouse units, to be constructed to an operational Net Zero Carbon ("NZC") standard, on the site where there is surplus land with currently no apportioned value. A pre-planning application to develop 130,000 sq ft of space has been submitted to Wiltshire County Council."


There's a lot to like about SREI - if they're not the most active at creating value, they can't be far off it.

[skyship] 28/6/2022 13:04

Also reduced my holding at 54.3p. Prefer not to be too over-extended in anything at the moment...

[chucko1] 28/6/2022 09:54

Sky, as we keep saying, these bizarre sell-offs are merely a reflection on the weak hand(s) of (an)other(s).

At the discounts we saw last week it would have been an act of savage and dark stupidity not to have bought, whatever ones holding at the time!

Easiest trade of the year. By a distance. I was thinking of opening an ISA for my cat. (Won't make it to SIPP age, unfortunately).

Only sold 1/3 of what I bought.

[cousin jack] 28/6/2022 08:10

Sold my recent buy this morning. Thanks Sky for highlighting the opportunity last week.

[nickrl] 27/6/2022 21:34

@skyship for sure but i had already loaded up further before teh results so couldn't bring myself to buy anymore

[skyship] 27/6/2022 19:52

A very welcome (& profitable!) recovery from a bizarre sell-off...

[skyship] 27/6/2022 11:02

Thnx for that

[nexusltd] 27/6/2022 10:51

@skyship. CBRE stats usually published between 7th and 14th of following month.

[skyship] 27/6/2022 06:36

nexus - an interesting piece of work. We'll see how it pans out.

When do we get the CBRE June stats?

[nexusltd] 26/6/2022 21:14

Cumulatively applying the CBRE April and May stats to SREI’s March 2022 portfolio mix.
- May NAV estimate: 80.8p
- Discount on 52.3p closing 24th offer to May NAV estimate: 35.2%

Edit: NAV estimate does not include accrued income.

[skyship] 26/6/2022 13:58

Dividend & NAV to end June was declared on 19th July last year - so perhaps only 3weeks to wait.

[my retirement fund] 24/6/2022 09:59

Good to see people piling in at these levels. What are those trades listed AQSE about, not seen them before.