Secure Income Reit Share Discussion Threads

[adae] 28/11/2020 13:53

Can imagine most of Alton Towers business is done in summer, and vaccine should have taken effect by then. Does feel like SIR should be nearer £3.50, itself a pound off pre-Covid levels.

[pyufak] 28/11/2020 13:23

Vaccine a massive positive for me with this one. The most recent presentation broke down the investment case incredibly well. Assuming flat valuation for the hospitals (which I think fair given the backdrop) then off the current share price you're buying the leisure portfolio @ 50% discount which looks attractive given the news flow since the presenation

[bondholder] 24/11/2020 12:16

SIR lagging behind the market today. Suspect most have not read through the positive valuation effect on Merlin/Travelodge. No reason for these to stay below 350 for long.

[belgraviaboy] 05/11/2020 13:27

SIR has been popular the last few days....

Long may it last

[adae] 29/10/2020 13:45

Ex-div today. Another nationwide lock down presumably wouldn't be good news for Alton Towers.

[adae] 24/10/2020 07:44

Thanks, a good read. He might also have mentioned the substantial management holdings - rare in REIT IT's - and the large director buying at 250-ish.

On the downside, he perhaps should have mentioned the sale of a large chunk of the private hospitals, pre-coronavirus.

[rambutan2] 23/10/2020 20:53

The eminent Peter Spiller says:

Within the risk asset portfolio, the period was dominated by an unusual number of large primary and secondary placings. This activity was concentrated in alternative property (“sheds and beds”) and renewable infrastructure. Earlier in this report we lay out some of our thinking as to attractions of these types of assets. The single most exciting secondary placing was in Secure Income REIT plc (SIR) which occurred in July. Notwithstanding the name, this vehicle has had a torrid crisis due to its position as a major landlord to, amongst other tenants, Travelodge and Merlin Enter- tainments (Legoland, Alton Towers, Warwick Castle etc). These underlying tenants have experienced severe short term impacts from the Covid crisis. This challenging backdrop was exacerbated by a weak market dynamic as a large institution, widely considered to be a forced seller, struggled to build a book in a secondary placing process. Unsurprisingly the share price was very weak. (Me, just a reminder. Invesco were the seller of an 8.95% stake on 15-16/07 and everything went through at between 255 and 256p)

So what is it about this opportunity that is attractive? Firstly an excellent management team who we trust to guide SIR through the Covid crisis. Secondly, a port- folio containing irreplaceable and strategically valuable properties. Thirdly, and most importantly, compelling value. The Company acquired its holding at a price barely higher than the combined value of SIR’s cash and its portfolio of private hospitals (which are trading extremely well). We are always excited to find opportunities with significant upside if we are lucky and limited downside if we are wrong. This holding is now the second largest in the property portfolio and is a top ten equity holding.

[belgraviaboy] 23/10/2020 07:52

I don't like the sound of further restructuring of the Travelodge leases...

[adae] 23/10/2020 06:46

And as if by magic - with these additional comments:


"As part of the process of exploring the Company's options, the Company also ran a sales process where, reassuringly, multiple bids supported the 30 June 2020 hotels portfolio valuation. However, none of these offers reflected the potential for value recovery once the pandemic has subsided. Consequently, and given the lack of certainty of outcome of these discussions, the Board ultimately concluded not to pursue this option.



Constructive discussions have also taken place with Travelodge about restructuring its leases and that will be considered on its merits in due course. A further update will be provided as and when appropriate."

[adae] 15/10/2020 07:59

They're perhaps sticking with Travelodge then - had expected some news by now.

[adae] 17/9/2020 18:51

chucko1 - joined 18th May 2018. ltcm1 - joined 10th May 2018. Where's the 3rd one?


"1tcm1 - 18 May 2018 - 16:58:51 - 3017 of 11152 ::: WOODFORD PATIENT CAPITAL TRUST ::: - WPCT
Well said chuckol. I second everything you said."


LOL

I don't have multi-handles - you clearly do.

[1tcm1] 17/9/2020 15:45

Yes you're right specto. You've had a stonking six months in all 50+ of your shares. Or am I/you holding the charts upside down?

Good trick that. It's what makes your total certainties drag you down into poverty. LOL

[adae] 10/9/2020 10:07

Thought something might have happened before now but as you say, 2 more months, and even if nothing happens, current price prices in a lot with that 386 pence EPRA.

Yield, moderate safety, gap to NAV, possible upside on Travelodge sites.

[belgraviaboy] 10/9/2020 09:08

Wading through the results.

Interesting to note SIR opted not to extend the Travelodge leases which would have voided the break option.

Be interesting to see what happens over the next two months....

[adae] 17/8/2020 07:18

Doubt freeholds would be bought, & doubt SIR would be a seller of them, but marvellous to see Travelodge now squirming. Look forward to their comeuppance.

[bondholder] 16/8/2020 15:31

Whitbread 2025 bonds trading at par with a coupon of 3.375 percent

[bondholder] 16/8/2020 15:27

And the buyer gets to shaft TL as a bonus.

[bondholder] 16/8/2020 15:24

Say 500m for 120 hotels from SIR.Full rent 28m pa.Interest at 3.5 percent 17.5m pa

[bondholder] 16/8/2020 15:20

I wouldn't be surprised if one of the aforementioned hotel chains bought the freeholds.

[adae] 11/8/2020 07:35

Wonder if they'll time it more with ending of lock-down, having seen IHG's results this morning. Great for the "new" Travelodge, let the old one take the pain of heavy losses.

And great for Secure Income REIT when the old one gets the boot from multiple sites :-)

[bondholder] 08/8/2020 20:19

One of the world's biggest hotel companies has ratcheted up the pressure on Travelodge with plans to poach scores of disgruntled landlords.Accor, the French giant behind Ibis, Softitel and Raffles, held a conference call with around 150 of Travelodge's property owners on Thursday to woo them into joining a new UK budget venture, according to industry sources.Boss Sebastien Bazin is understood to have told attendees that the new venture would provide Accor with a crucial springboard to expand rapidly across the UK. The Paris-listed firm runs almost 1,600 sites at home, compared with 376 in the UK.Mr Bazin is believed to have told landlords that "the UK has been a tough nut to crack". He added: "[This is] a unique opportunity to get a meaningful footprint in the UK."