Share Name Share Symbol Market Type Share ISIN Share Description
Schroder Real Estate Investment Trust Limited LSE:SREI London Ordinary Share GB00B01HM147 ORD SHS NPV
  Price Change % Change Share Price Shares Traded Last Trade
  -1.30 -3.71% 33.70 2,305,983 16:35:24
Bid Price Offer Price High Price Low Price Open Price
33.80 34.90 35.00 33.00 33.80
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 26.62 15.90 3.10 10.9 175
Last Trade Time Trade Type Trade Size Trade Price Currency
17:13:03 O 9,521 33.978 GBX

Schroder Real Estate Inv... (SREI) Latest News

More Schroder Real Estate Inv... News
Schroder Real Estate Inv... Takeover Rumours

Schroder Real Estate Inv... (SREI) Discussions and Chat

Schroder Real Estate Inv... Forums and Chat

Date Time Title Posts
09/7/201801:02Schroder RE (SREI) One to Watch on Monday -

Add a New Thread

Schroder Real Estate Inv... (SREI) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
View all Schroder Real Estate Inv... trades in real-time

Schroder Real Estate Inv... (SREI) Top Chat Posts

Schroder Real Estate Inv... Daily Update: Schroder Real Estate Investment Trust Limited is listed in the Real Estate Investment & Services sector of the London Stock Exchange with ticker SREI. The last closing price for Schroder Real Estate Inv... was 35p.
Schroder Real Estate Investment Trust Limited has a 4 week average price of 33p and a 12 week average price of 33p.
The 1 year high share price is 59.40p while the 1 year low share price is currently 33p.
There are currently 518,513,409 shares in issue and the average daily traded volume is 1,548,298 shares. The market capitalisation of Schroder Real Estate Investment Trust Limited is £174,739,018.83.
cc2014: The assets we can assess for ourselves. Looks ok to me. Some retail but a balance of things. The LTV is really low at 22%. The NAV is £354m of which £90m is cash. But unless they redeploy the cash how do they generate a decent return, so (part of) the raised dividend will be paid from the cash pile I think rather than generated from earnings at least in the short term. The new long term funding at 2.5% until 2036 will come in useful if ever interest rates rise but I'm not impressed they had to pay a break clause of £28m to get out of the old financing deal. So, it looks a bit like the fund has screwed up on it's long term debt, paid a lump of money to get rid of it and start again with a low headline rate. Of course if previous shareholders have paid for that and you as a new shareholder aren't it won't matter. My view overall is in 10 years time that interst rate fix at 2.5% might look amazing in which case an entry here will work out well. (or it could look even worse as it seems rates may fall further too). I tend towards believing interest rates will rise in the long term but the market does not agree with me. I perceive RLE looks better value if you want a REIT with no London assets. The dividend is fully covered and rising and the mood music on RLE is good. Of course RLE only has a market cap of £100m. Which of course if Schroders got their finger out they could use the £90m cash pile and some of their undrawn debt facility to make a bit for RLE. I can only hope. I'm sure Schroders can spend the £90m on something M&G are looking to shift. I'll wait for the share price to drop as although an entry here is OK and enough to pique my interest I don't see the share price as low enough to make me want to press the buy button. Some clarifation on what the £90m is being spent on might also entice me off the fence. I have the feeling the market is turning on these REITs though and I'm not sure the share price will fall.
skyship: The 16th October RNS confirms the final cost as £25.8m, ie 5p/share. That reduces the NAV from 68.3p to 63.3p; and takes the NAV discount at 54p down to 14.7%. The upside is the f/c dividend increase, which could uprate from 2.6p to 3.1p/share; taking the yield from 4.8% to 5.7%. Makes the shares fair value and likely to continue in their 53p-58p trading range. A HOLD rather than a BUY would be my assessment.
pimsim: I suspect the share price is reacting more to this bit: "The refinancing has resulted in a negotiated break cost of approximately GBP28 million, equating to a reduction in the NAV per share of 5.5 pence." So they have paid GBP28m up front as a break clause on the existing loan in order to refinance at a lower rate which saves GBP2.8m per year in future interest payments for the next 16.5 years. On a NPV basis that doesn't look particularly great.
speedsgh: Refinancing of Long Term Debt and Dividend Increase - HTTPS:// The announcement hasn't been of much help to the share price yet! "This activity resulted in the Board increasing the Company�s dividend by 5% in the financial year to March 2019." Hmmm. Full yr dividend for year to March 2019 was 2.5555p (year to March 2018: 2.48p) which represents an increase of 3.04%. TOTAL FY ended 31/3/2019 - 2.5555p 4th interim (Jun 19) - 0.65p (PID 0.35p; non-PID 0.30p) 3rd interim (Mar 19) - 0.65p (PID 0.35p; non-PID 0.30p) 2nd interim (Dec 18) - 0.6355p (PID 0.35p; non-PID 0.2855p) 1st interim (Aug 18) - 0.62p (PID 0.35p; non-PID 0.27p) ------------------------------------------------------------------ TOTAL FY ended 31/3/2018 - 2.48p 4th interim (May 18) - 0.62p (PID 0.35p; non-PID 0.27p) 3rd interim (Mar 18) - 0.62p (PID 0.35p; non-PID 0.27p) 2nd interim (Dec 17) - 0.62p (PID 0.35p; non-PID 0.27p) 1st interim (Aug 17) - 0.62p (PID 0.35p; non-PID 0.27p) However I suspect what they mean is that the quarterly payment rose by 5% over the course of the year to March 2019 from 0.62p to 0.65p. If so, one assumes that they now mean that the "increase of approximately 20%" is to the quarterly payment which means that it should rise to 0.78p per qtr which equates to 3.12p per annum (forward yield of 5.8% based on current offer of 53.6p).
asmodeus: Supposing you get dividends of £100 a year. If the share price rises by £500 you can take the profit and (assuming you are within your allowance) and, less charges, that is the equivalent of 5 years dividends - and tax-free!
novision: This continuing share price increase is knackering the yield. ;-)
speedsgh: Thanks for the link, Skinny. Trades not showing up there either. No doubt they'll pop out of one of the systems at some point. jonwig - i concur that a cut in the dividend is sensible. i don't have a problem with it, however i do expect the uncertainty over the ongoing dividend level to have an effect in the share price in the short term. the share price action at PCTN during the corresponding period of uncertainty provides a pointer as to the possible scenario here imo.
redsonning: The new financing is excellent news for the company, which is why the shares are starting to rise. It is not logical to suggest that the share price is over valued following this significant improvement in the company's loan arrangement. The share price is most certainly not driven by the dividend (which is indeed somewhat high). We have seen this in the recent examples of Picton (when the share price rose following a reduction in the dividend, and in the IRP/IPT situation where the same thing is in the process of happening. In property stocks the decision about the level of dividend is simply a balance between taking cash now and leaving enough for the company to develop it's property portfolio further. Hence when the balance is wrong (for example when the dividend is too high) the company finds it's share price being negatively affected since the market fears future NAV decline. Putting that situation right allows the share price to return to its underlying value level.
lord gnome: The PCTN deal looks good and shows that SREI might also refinance without too much difficulty. The variable interest rate shouldn't hold too many fears. If interest rates rise, that's a sign that the economy is improving and so property prices - and rents - should also respond. In the meantime, like others on here, I am amazed that the SREI share price is so low.
skyship: My response posted on FT Adviser: ================================== The author, Stephen Peters is an IT analyst rather than a Property analyst; so well done him for finding his way to the value here, however he should have consulted with one of his Property colleagues. He still would have penned the recommendation, but he wouldn't have been so reserved. SREI is one of the very best value property plays on the LSE – bar none! Sure its portfolio is not top drawer trophy assets; but nor is it entirely secondary either. It is a good mix of highly marketable, long-leased and well-tenanted properties; and it is a deliberate policy to retain its middle-of-the-road mix so as to retain above-average yields. The usual parameters for assessing the stockmarket valuation of property companies are: # NAV discount # Yield # Loan-to-Value figure – LTV # Debt profile # Property portfolio mix & quality – office, industrial, retail NAV discount Most commentators nowadays use the EPRA NAV as in recent years companies considered it good practice, or were persuaded by their bankers, to enter into swap arrangements to ensure debt against future interest rate rises. The QE inspired interest rate falls have saddled most companies with mark-to-market deficits, which unravel with time as the company progresses to debt renewal. The EPRA NAV at SREI is 55.8p; so at a share price of 34p the NAV discount = a highly attractive 39%. If the Plantation Place Joint Venture is sold it may well take the EPRA NAV up to 60p, increasing that discount to 43%. Yield: The Board is set on maintaining the 0.88p quarterly dividend and it is the remorselessly stated objective to increase cashflow so as to cover that 3.52p annual dividend as soon as possible. The stats over the past year show that the Company is delivering on that objective, with full cover now looking certain in 2013. At the current share price of 34p the yield = a quite remarkable 10.3% LTV: Following the recent sale of the BT building in West Bromwich, the LTV reduced to just 41.2% versus its debt covenant level of 60%. Peters states: "The fund remains one of the most highly indebted in the sector, a fact reflected in the relatively wide discount at which its shares are trading to the value of its investments." For a property company that 41.2% that isn't high at allso; actually the borrowings are quite normal, low even... Compare that figure to the LTV of 4 of the big blue chips: # BLND: 45.6% # GPOR: 36.6% # HMSO : 52.0% # LAND: 37.2% And compare to Picton (formerly ING Real Estate) who in a fruitless pursuit of SREI wasted a year of SREI management time and an estimated £1million of costs. The PCTN LTV = 46%. Peters has perhaps validly but incorrectly compared the LTV figure with other Investment Trusts; whereas he should have compared to SREI's property peers. Debt Profile: I've shown that the gearing is normal. The other thing to consider is the debt maturity. This is fully transparent. To quote from the most recent IMS: The Company has a single on-balance sheet loan facility of GBP173.5 million that matures in July 2014, with no other on-balance sheet financing maturing prior to this date. The Company is considering longer term re-finance strategies that reduce the overall interest cost and avoid crystallising swap break costs. The average interest rate inc. swap margin is 5.69%. So there is no immediacy; but the Company would like to refinance for the long-term sooner rather than later. Property Portfolio: # Retail 22.2% # Offices 49.4% # Industrial 24.3% # Other 4.1% Prior to the BT building sale, the Top Ten properties accounted for 47% of the portfolio and fell into the value band of £10m - £28m. So quite clearly this is not a portfolio of tertiary properties, secondary yes, highly marketable yes. Summary: SREI is an attractive middle-of-the-road property play with a considerable number of value enhancing opportunities. Now, managed at low cost under the Schroder umbrella, the 2014 refinancing should be a relative formality; and the likelihood of a stockmarket rerating is obvious. Post a Plantation Place sale I would expect a share price rise to, say, 44p for a still way above average 8%yield and a 27% EPRA NAV discount. That share price would still be cheap, but would represent a 29% gain from the current 34p.....and shareholders enjoy the 10.3% yield whilst they wait for that inevitable re-rating to kick in...
Schroder Real Estate Inv... share price data is direct from the London Stock Exchange
ADVFN Advertorial
Your Recent History
Schroder R..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200330 17:13:47