Sirius Real Estate Ld Share Discussion Threads

[senor_sensible] 19/8/2015 07:50

Think it only fair to post the discussion we have been having about SRE here rather than be accused of cross board ramping :-) as posted on Alph

Hi Steve,

Thanks for spending some of you evening to advise me on my investments, sorry I could not respond sooner but I was having some chilled Tinto Verano whilst watching the sunset over the med.

I am 100% happy with my exposure to all my investments including my very risky ones which are of a rocket or bust nature and have had no problems sleeping.

My portfolio includes funds, fund of funds, blue chip, small cap and Aim. Some of my riskier shares are like Alph where the share price is a fraction of the cash in bank or adjusted NAV (note is all the property sold at market price and debt was settled this would give 10p per share return). If alph 10 bagged it would make a small positive difference to my portfolio, if it went bust it would make a small negative difference to my portfolio

And some where the share price is above the adjusted NAV such as SRE, one of my minor concerns at SRE is the fact the NAV seems to be inflated by upward revaluations of property which do not follow general market trends in the region which tend to precede a placing, diluting the value of my shares (Smaller part of bigger company but if there are doubt about valuations it could end up with more investors looking for the exit door) Also concerned at the prices paid for some properties which appear to above market value (hence the lack of competition when buying property)and also the fact that insiders are selling shares on a regular basis, I have a few other things niggling me but don't want to go into detail here. I am more concerned about my holding in SRE than I am about my holding in Alph. Out of the two I think Alph is the most likely to be a 10 bagger in the next couple of years :-) and I can take the profit from SRE much easier.

No point comparing apples with oranges, one is closer to the top and the other is closer to the bottom.... :-)

I have quite a lot of research on SRE, will post over there some time, but in the meantime I suggest u look at the background to the properties and what historic valuations were and why there is a need to reduce the LTV while borrowing costs are at all time lows :-)

[4spiel] 03/8/2015 12:07

Good results again 31st July. Final dividend 10th July 0.84 cents.

[4spiel] 12/6/2015 14:57

I like what they are doing and one always hope this will one day be in the league of the big property companies. but it is a toddler on AIM. Admittedly doing better but how committed are the company to being in for the long term. This is what interests me - so I bought some and just keep fingers crossed as long as it performs !

[glavey] 12/6/2015 04:39

"but in 2015 what can the PI do?"
Keep applying some pressure in my view. Otherwise be left to pick over the bones whilst others gorge on the flesh...

[blackpoolsteve] 10/6/2015 07:54

Hi Glavey,

I tend to agree with your views,but in 2015 what can the PI do? I fear we are over a barrel.The only time you can get a script is if you hold the certificte, and as you say nominees dont allow this. Hargreaves-Lansdowne wont even trade in SRE.

I dont agree with Topvest, as I hve been adding to SRE because it was trading at a discount to NAV + its started to pay a dividend. It looks like a growth stock, as its getting its act together

The track record of past share dilutions is that it has enhanced NAV later as the rents come through. Longer term,it still looks reasonable value for the PI,but anyone going to the AGM may be able to get some answers?

Kind regards, Steve

[glavey] 09/6/2015 17:36

"Small investors own only a small portion of the company."
Really that should be written as 'small investors each own only a small portion of the company' for obvious reasons. Bear in mind it's a capital raise for aquisition, as was the previous one. Together they diluted existing (excluded, non participating) shareholders by appx. 40%. Opportunity timing issues necessitated a quick placing I accept. But it would be nice to see an open offer for those left out.

"Well I thing (sic) the acquisition and placing are good news."
I don't disagree.

"I don't really want more of these anyway."
That's the point of an open offer - those who would like to subscribe can, those that don't can pass.

The problem with private placings to 'favourites' is that those favourites start to wag the dog.


As an aside, how many holders in nominee a/cs have been given the opportunity to participate in the scrip dividend? Anyone?

[topvest] 05/6/2015 08:56

Well I thing the acquisition and placing are good news. I don't really want more of these anyway. Looking them to deleverage and become a strong capital and income play which is what is happening. I'm now in profit which is good.

[blackpoolsteve] 05/6/2015 07:12

Small investors own only a small portion of the company. Institutions such as SA Karoo and others own the majority,hence easier to let them absorb the placing.

I agree not fair,but thats the real world. On the positive side,the Booard are delivering, and "gaining momentum",which should benefit all long term shareholders. Comparisons with bodged boards IERE and ALPH are in direct contract.
Hope this sugars the bill,
Regards, Steve

[glavey] 05/6/2015 02:46

Second placing in circa 6 months with nothing generally available for existing shareholders. One is unfortunate, two seems like carelessness.

The company should be working for all shareholders not just personal favourites. A small open offer for those who have not been given opportunity to participate is warranted and not that difficult. I don't find it savoury to expect existing holders to buy in the market to avoid dilution and thus hand a quick profit to placees.

[4spiel] 22/5/2015 10:17

Good results. Increased dividend. lower borrowings. Keep some!

[blackpoolsteve] 15/2/2015 19:26

I bought in sterling,and this is converted from euros at the time you deal.Euro is a worry,but properties are in Germany and Institutions are on board;so with increased divi looks a reasonable growth play.

[netcurtains] 15/2/2015 09:31

I'm interested in the currency angle.
Do we buy these in Euros and as such is that at a 14% discount to 2 weeks ago?
Are we expecting the EURO to rise or fall short term from here?

[blackpoolsteve] 28/12/2014 21:25

Merry Christmas everybody,

Does anyone have any idea how many institutions hold this company - percentage wise? I know of Kagoo (23%) F& C(reduced to under 3% I think), and Premiere A/M (8%) Annual Report doesnt appear to disclose?

Cheers,Steve

[stevenlondon3] 22/11/2014 13:34

I am trying to get a feel for the longer term dividend growth. Fnncap, their NOMAD,is forecasting 1.6p for 2014/15 and 1.8p for 2015/16 which equates to a prospective yield of 4.8%.

[topvest] 14/11/2014 17:34

Yes, all looking much better....about time. Still on quite a discount as well so not pricey!

[stevenlondon3] 14/11/2014 11:26

Interim dividend of .77 cents and NAV up 7% in the six months to 47.3c per share.

[stevenlondon3] 07/11/2014 12:19

Some large trades going through over the last couple of days.

[ibarty] 17/6/2014 01:02

In the webcast CEO mentioned prospective yield is 4.2% at 33c. On occupancy, from the commentary in the results a lot of this is property with limited economic value unless refurbished. They are addressing this through disposals and the 9m Capex programme

[blackpoolsteve] 16/6/2014 20:15

Agree with above positive comments. It appears that a lot of Institutional buying today,only disappointment is the the occupancy rate of 75%
Overall very encouraging with restored dividends

[topvest] 16/6/2014 19:01

Yes, all looks much more encouraging. With 2.7c earnings and a 65% pay out ratio we could be looking at a 1.8c payout next year. A 5% prospective yield?

[stephanie_m] 16/6/2014 08:09

Dividends restored

FinnCap appointed joint broker.
Interesting!

[sammy_smith] 16/6/2014 07:49

Listen: Andrew Coombs, CEO, Sirius Real Estate (SRE)
Full year results to 31 March 2014

Click the link below to listen

[ibarty] 16/6/2014 06:52

they even have a webcast uploaded as well. Does seem quite attractive play to me

[stephanie_m] 15/6/2014 23:05

Results in the morning. Interesting!

[blackpoolsteve] 10/4/2014 08:35

Agree. Compared with other dogs such as ALPH,which is ramped a lot,but NAV declines regularly ;it is much more encouraging.

Long term prospects for capital growth look ok,with big discount to assets. Only downside is the euro,but at least its in Germany and not in the PIGS