Schroder Real Estate Inv... Share Discussion Threads

[petewy] 08/6/2024 13:45

ST tip in IC
...delivered another year of outperformance compared with its peer group.

Although the valuation of its underlying portfolio declined 2.8 per cent, this was less than half the 5.7 per cent fall of its MSCI benchmark. Moreover, lower rental voids coupled with asset management initiatives boosted total rental income by 2 per cent to £29.8mn and underpinned an income return of 6.2 per cent, or 1.5 per cent higher than the MSCI benchmark. The total portfolio return of 3.2 per cent compares favourably with the 1.2 per cent negative return on the benchmark during the 12-month period.

[speedsgh] 07/6/2024 11:41

Recording of yesterday's SREI full year results investor presentation hosted by Investor Meet Company -

Q&A from 41:08

[giltedge1] 06/6/2024 11:31

Hello nickrl, yes correct assessment, some of the rent free expiries & fixed uplifts are being undone by new vacancies. 2 - 3% of vacancies due to Stanley Green & refurbishment of Swindon, all Grade A so should let quickly one hopes. However on reflection 'all in the price' & can see dividend rising next few years. couldn't say that for API,ASLI,BCPT (all being wound up of course). They were all struggling with refinancing & uncovered divs. I have added this morning top sliced a few of my winners. Canada Life Loan is great must be saving 3% a year or £4M there abouts & no refinancing till 2032. Must be the best I have come across in Reit's. Also expect Simon Thompson of IC to do some ramping when he reviews!. Happy to hold & accumulate taxfree divs,in my SIPP & bank safe 8%, yield. Expect some capital gains as well in a 12 month view.

[nickrl] 06/6/2024 09:58

@giltedge they've been punting the ERV potential for several years now but its been slow to come through and what has has come has needed at a lot of up from investment. What is a positive here though is the guaranteed rental increases that will flow through over next 24mths but that could be undone by expiry's or breaks which they never tell us about (nor do most others either). Despite my negativity im still attracted to it is the decent entry yield i got which remains covered so stays in the portfolio.

Its one that would dovetail nicely with CREI or PCTN but neither of them would role over easily being self managed so SREI a more likely target.

[giltedge1] 06/6/2024 09:43

NAV static Q4 so outperformed peers, NAV including gain on loan 63p, ERV to capture £8M + current rent frees in notes £2.5m so points to future div increases, could yield 10% in a few years at 0.43p entry price.

[nickrl] 06/6/2024 08:44

First dibs on RNS is this is flattered by a 1.5m dilap income which masks some of the other increases. Was also hoping to see some post period end updates that some of those purported lettings are being crystalised at the likes of Stanley Green but nothing new. Also seems we need to dish out plenty of rent free now along with capex investment to secure tenants maybe thats just todays mkt but its loading up the uncapped part of the RCF if they dont make disposals. Also am wary that going heavy on green stuff will really pay off but i guess Labour, is they win, will push the MEES regulations so hopefully will be proved wrong.

Despite steady as she goes still sticking with them and recycling my divis back in.

[chucko1] 06/6/2024 08:01

The basic arithmetic:

WAULT - 5.3yrs

NIY - 6.1%

Rev. Yld. - 8.4%

Current average cost of debt - 3.5%
Average debt maturity - 9.7yrs (91% fixed [at present])

(likely future cost of debt) - c. 5.75% (my estimate, but based on current market levels)

So without being granular re. lease expirations, the gap in reversionary to current yield (implying a 37% rise at constant NAV) over 5.3 years weighs well against the 64% rise in debt finance costs x 37% LTV = 24%, the latter implying 12% rise over around 5 years using the simplifies assumption of a linear debt profile (can do better than that with time and effort!). Furthermore, they will likely be at 30% LTV quite soon, although that would slightly affect the other side of the equation, but only in a minor sense.

So they cover a now 7.75% yield which is very likely to grow according to the above numbers, with significantly less risk than many alternatives (whether property or otherwise).

I probably do not have enough.

[dope007] 06/6/2024 07:37

Added a few this morning. Circa 25% discount to NAV and 8% yield screams undervaluation and no wonder we are seeing takeovers/consolidation in this sector

[deanowls] 06/6/2024 06:51

Investor meets this afternoon mate.

[uapatel] 06/6/2024 06:46

Well I’m pleased with the results on the whole.
Raised dividend (fully covered) and NAV reduction was less than I feared.

Hopefully they have a positive analyst meeting.

[dope007] 06/6/2024 06:26

Looks decent to me

[rambutan2] 05/6/2024 22:20

The only REIT i hold, courtesy of that chunk of long-dated cheap debt.

[giltedge1] 05/6/2024 13:57

Seems good value, majority holdings multi - let industrial estates, dividend yield almost 8% at 43p, no refinancing for a long time. Witan trust has a big holding.

[hugepants] 05/6/2024 09:19

I reckon this is as good value as any other reit. Yield is sub 8% (just) but the debt profile probably the best of the lot?Results tomorrow.

[nickrl] 31/5/2024 13:14

@sky they have a few rent free periods that are expiring over next 12mths that will add some extra NRI although could easily be lost to new voids of course but there is potential to shift divi up 3-4% later in the year.

Still feel they need a merger of equals with someone in the longer term.

[skyship] 31/5/2024 12:51

Next Thursday's Prelims will reveal the updated NAV to 30th March.

A further small fall expected; perhaps down to 57.5p. That would take the discount at 43p down to 26.7% - lower than most peers. The dividend at 7.78% attractive; but also lower than many.

It is the B/S strength with the long debt maturity that is the major bull point; but overall they look to me like a HOLD rather than a BUY.

[dope007] 31/5/2024 10:55

It does to me. Very little interest in it it seems but happy to collect the dividends

[raj k] 31/5/2024 10:27

Everything seems to have gone quiet re SREI.

What are other thoughts, better value elsewhere? TO me it looks like a solid diversified with a good manager?

[uapatel] 18/5/2024 13:37

Shares Magazine-SREI
Nick Montgomery

[mirandaj] 15/5/2024 11:29

Nick Montgomery 26th March if not seen

[skinny] 29/4/2024 06:01

Schroder Real Estate Investment Trust Limited will announce its Full Year Results for the year ended 31 March 2024 on Thursday 6 June 2024.

There will be a live webcast presentation for analysts and investors at 8.30am on the morning of the results which will be available at:

[rambutan2] 26/4/2024 19:46

But set to be one of the few survivors of the ravaged UK Commercial Prop sector. In fact the 2nd largest after Custodian if Balanced Commercial doesn't survive its strategic review.

[spectoacc] 26/4/2024 18:57

Bit too illiquid for me, but I'd have thought you'll get a couple of p back up on it soon, fingers crossed.