Standard Life Investment... Share Discussion Threads

[skyship] 05/10/2020 17:28

An extract from my spreadsheet on 16 secondary propcos.

# Extracted to show those on 40%+ discounts

# AIRE & RGL included because of the great yields

# All NAV stats are to Jun'20, exc. MCKS still to Mar'20


EPIC share price ...NAV...Disc...Divi..Yield
---------------------------------------------
AIRE 51.00 83.60. 39.00 5.00 9.80
BCPT 67.20 120.70 44.30 3.00 4.46
BREI 52.00 96.60. 46.20 2.50 4.81
EPIC 49.50 90.24. 45.10 4.00 8.08
MCKS 190.00 329.00 42.20 7.20 3.79
RGL 66.00 102.60. 35.70 6.00 9.09
SLI 46.80 79.60.. 41.20 2.86 6.10
SREI 32.85 57.70. 43.10 1.54 4.70

"You pays your money you takes your choice"....but sure looks to be
some great value out there, especially those showing good rent collections.

[spectoacc] 05/10/2020 15:55

Not convinced SLI's a stand-out. Rent collection not the top, NAV performance was on the poor side considering c.half is in industrial, vacancy rate been (understandably) ticking up, & LTV, tho not bad, isn't the best in the sector.

Charges on high side too. Matters less when everything going gangbusters, but adding to losses when it isn't.

SLI's cheap IMO - just not stand-out when there's so much deep value (seemingly) out there.

Some proper director/board buying might change my view, and not just the occasional token 50k.

Most of today's "sells" appear to be buys, fwiw, but clearly a seller in the background like there also is on EPIC.

[hindsight] 05/10/2020 15:14

Im wondering if these offshore funds like this and BREI are seeing non residents throw the towel in

[essentialinvestor] 05/10/2020 14:32

Can anyone explain the share price weakness here ,wonder if I'm reading this incorrectly.

Plenty of sells going through again today.

[essentialinvestor] 02/10/2020 18:56

Added a small amount this afternoon.

Posted previously I thought the low for SLI was in,
so this price action has surprised me.

It looks like investors generally want ever greater NAV discounts in this sector,
at least for now.

[hindsight] 02/10/2020 18:30

Thanks EI point noted

[essentialinvestor] 02/10/2020 00:56

Vacancy rate looks a little on the high side, that needs to be watched.

[hindsight] 01/10/2020 16:50

Kenmitch, prefer aic too, less advertising

Maybe of interest but nothing we dont know


Added again today and reducing a long held BBOX posistion, divergence too great in my view

[kenmitch] 24/9/2020 15:44

Many many thanks all for such prompt and very helpful replies. I’ll be checking them all out.

In attempt to add something useful in return (though you probably all realise this already!) having used Trustnet for years, I now mostly use this aic website instead, as I find it more user friendly and with big + that it only covers Investment Trusts.

[spectoacc] 24/9/2020 15:38

@kenmitch - of the 7 mentioned by @Skyship (PCA, SLI, RLE, AEWU, BCPT, EPIC, SREI), I'm in the last two, plus AIRE - but it really is a banquet out there. If, that is, you can cope with some indigestion along the way :)

[skyship] 24/9/2020 15:20

EI - yes, saw that spike in MCKS today as was watching to get back in having taken a small turn at 204p a couple of weeks ago. Corporate Action - now that would be a wake up call for the whole sector - BRING IT ON!

[essentialinvestor] 24/9/2020 15:17

ken, fwiw CLI looks to have the best rent collection ststs in the sector -
or at least that I'm aware of.

I sold a few CLI today and also just sold out of MCKS on today's spike
(there may be corporate action on MCKS).

ClI may be worth a look under £2, just fwiw. Under 1.90 particularly attractive unless we are facing a prolonged economic slump. Good fortune.

[skyship] 24/9/2020 15:16

Ken, I suspect the uncovered AEWU dividend is not sustainable; but a small reduction from 8p per annum to 7p would still provide a 9.3% yield!

I own all those three above, plus SLI & RGL (Disc at 35.4% & Yld at 9.05%)

[skyship] 24/9/2020 15:12

Leaving aside PCA & RLE; then:

# BCPT at 48.6%
# EPIC at 43.5%
# SREI at 45.9%

[kenmitch] 24/9/2020 15:11

Hi SKYSHIP, SpectoAcc and others here clued up on Property Trusts.

After reading their results statement and figures a couple of days ago, I was thinking of buying SLI, as the plus points looked strong and share price fall has been relentless and now even lower than the market crash low!

e.g that 40% NAV discount. Only 8.3% in retail. In sectors “well aligned to outperform in current environment.” Rent collection acceptable at 75% in August.....but rent collection lower than July. 92% occupancy. Very strong financial position.

Also used to outperform but hasn’t for a good while. 40% dividend cut but yield still 6% and they are optimistic sustainable at this lower level.

So overall looks very tempting. BUT SpectoAcc thinks others on bigger discounts and better rent collection appeal more. Can you name these Trusts please asthey too would be worth checking out. Am also keen to know the Trusts most favoured or held by some of the quality posters here.

btw I hold AEWU and bought in the 60s and it seems a better choice now than SLI with higher dividend yield that also looks sustainable. Or have I got that wrong? I also hold Palace Capital and small punt on Macau Property on a huge NAV discount.

The whole sector looks so bombed out with big upside when covid is over or vaccine for it. But finding the best ones is not easy and very time consuming, and some here are better at finding the quality bargains than I am!

[spectoacc] 24/9/2020 14:52

Couldn't call it expensive here, but there's arguably better REITs, others on bigger discounts, a number with better rent collection. All a balancing act atm!

[skyship] 24/9/2020 14:49

Topped up at 47.9 - Discount at 39.8%. EDIT - should have waited a minute as someone sold at 47p,,,now on a 40% discount!

[hindsight] 24/9/2020 14:44

Im guessing it was at a premium as suited non residents with the tax changes on commercial property. With covid and the B word, imagine they have run for the hills

[hindsight] 24/9/2020 14:36

Depending on how one views the real NAV, could say the B&Q let purchase yields near 10% in share price terms now

[skyship] 24/9/2020 14:33

True, especially as it used to be so loved by the funds that just 7months ago they were able to issue shares at a 6% PREMIUM!

[hugepants] 24/9/2020 14:10

Hard to believe this is trading at a 40% discount given the portfolio (>50% industrial and very little retail/leisure) and huge headroom on LTV and ICR covenants.

[nickrl] 24/9/2020 12:01

Listed sector gives visibility of what they are doing in this environment to support tenants would be interesting to know whether unit trust funds and pension fund owned property are following suit. We've even seen private owners across these forums saying they are giving concessions to there tenants. Then perhaps the likes of BPF can demonstrate to the government the scale of assistance provided and that this won't be able to continue if they don't cash in from those that can pay.

[essentialinvestor] 24/9/2020 11:29

HMG creating a potentially very dangerous environment for this sector imv.

All they needed to do was provide an exit strategy, even if they had said another
6 months and then it ends etc.

It's unsprising that some of the smaller REITS are now being hit as the potential
Implications of what appears an open-ended moritorium dent investor confidence.


Multiple openly critical articles on Johnson now appearing in the Telegraph.
Quite remarkable.

Hopefully my outlook proves to be too cautious.

[spectoacc] 24/9/2020 07:18

UKCM relevant to all:

"Needless to say, the other key area of focus has been and remains on rent
collection, as this underpins our ability to pay a dividend to shareholders.
We have successfully collected over 75% of the rent due for the second and
third quarters and have worked very hard to accommodate many of our smaller
tenants and those that have been hardest hit. However, it is very
disappointing to see some large well financed companies, particularly those
which have been able to trade throughout the lockdown, simply refusing to
honour their rental contracts."

Might have added "....With the approval of HM Govnt".