Schroder Real Estate Inv... Share Discussion Threads

[neilyb675] 19/2/2024 15:06

44.00 - 44.90 (GBX) at 15:06:05
on Market (LSE)

[rambutan2] 30/1/2024 04:45

The big advantage SREI has is the long term cheap debt. A merger of any scale instantly dilutes that advantage away.

Sod the large wealth managers, their portfolios performance will suffer with size and new smaller wealth managers will emerge who will be happy to buy the likes of SREI.

Cost benefits from being a larger trust always turn out to be absolutely minimal, if anything at all, in my long experience.

[yump] 29/1/2024 17:51

BBOX good update today - perhaps reading across a bit to here.

[nickrl] 29/1/2024 10:42

@Mirandaj thanks for that. The overview at the bigging of the presentation quite illuminating about what has to CP over last few years.

Mind you have to say these duo seem to be doing a lot of marketing for SREI to underpin their new strategy.

[mirandaj] 26/1/2024 16:43

Interview with Nick Montgomery & Bradley Biggins from Schroder Real Estate Investment Trust: 26th January 2024

[riverman77] 23/1/2024 10:41

Yes the wealth managers are getting bigger due to consolidation, so they're mainly interested in liquidity these days. IFAs also increasingly outsourcing investments to the wealth managers rather than doing it themselves. All of which means less demand for the smaller trusts.

[shieldbug] 23/1/2024 10:29

The daft thing is that wealth managers want larger trusts for liquidity reasons not for better performance. Rather suggests they are closet indexers.

[riverman77] 23/1/2024 10:22

They need scale to attract the interest of wealth managers (the main buyers) who increasingly want a minimum market cap of £1bn. This in turn will lead to more demand and better rating. Plus their are cost benefits from having a bigger trust.

[gonsan] 23/1/2024 10:15

Hello hindsight,
Why do you think they need more scale in the future?
I am surprised with businesses that are well run and make good money, distributing great income, but seem to not be happy with what they are.

[riverman77] 23/1/2024 10:14

Another very good presentation - seems a really well run trust, but unfortunately a bit too small and not sure how that can be rectified? This will surely be bought out - most of the other small, diversified REITs have been bid for or merged.
Worth noting that they mention in the Q&A that fair value of the long term debt is worth around £20m but this is not included in the NAV - would make it even cheaper if this were accounted for.

[hindsight] 22/1/2024 18:28

They looked a little twitchy in the interview
Realise they need more scale going forward but wont come from issuing shares

[nickrl] 22/1/2024 18:03

Getting too obsessed with green credentials is maybe a good idea but its comes at a hefty cost with no guarantees investment will be recovered in higher rents. Also so far govt haven't formalised any further changes to EPC compliance levels expected in 2025 and would suspect the clock has run down too far now so they will have to be backed off at least a year more like two.

As an aside SREI and API would have been a better fit but those two would never come to a sensible accommodation about who would take it forward.

[mirandaj] 22/1/2024 16:29

I note they stated NAV update in late February

[shieldbug] 22/1/2024 14:27

They suggest a coming wave of sustainability opportunities focused on 2030 climate goals and they want to get ahead of their peer group on this. Also they want to focus on the larger properties and the Trust getting bigger though I am not sure how that happens with the share price trading at a massive discount to NAV.

[shieldbug] 22/1/2024 14:22

Interview with SREI fund managers Nick Montgomery and Bradley Biggins with Investment Trust Insider. About the best explanation of the new strategy.

hxxps://citywire.com/investment-trust-insider/news/the-big-broadcast-schroders-challenges-and-opportunities-after-uk-property-crash/a2434417?utm_pos=1

[speedsgh] 18/1/2024 14:29

Another test of 40p support on its way?

[spectoacc] 18/1/2024 13:57

Waiting, just anticipating? ;)

[mirandaj] 23/11/2023 07:40

If not seen - Brown to Green strategy:



Harnessing our active management capabilities and sustainability expertise to create an operationally net zero carbon warehouse scheme. The first of its kind in the North West of England.

[giltedge1] 22/11/2023 16:46

Thanks Spectoacc, I am staying put also, I personally, do not understand infrastructure stocks & their accounting standards, report interest paid from investee company to parent only so under report cap ex & interest rates in investee companies. I suspect a lot are just repaying your capital. At least SREI, easy to understand, transparent, positive cashflow, income increasing & 8% & rising yield, great for my SIPP.

[starpukka] 22/11/2023 16:31

Spectoacc......I'm still holding here, but what do you like better ?

[chucko1] 22/11/2023 16:27

Still keeping a few. Market is 45.2475/45.25 - was inverted a little while back, as Specto says. I sold one clip at above the offer.

If trading Tommo re. AIRE is anything to go by, there was only one trade to do!!

[chucko1] 22/11/2023 16:18

Ditto selling in a bit of size.