The Local Shopping Reit Share Discussion Threads

[skyship] 03/3/2018 13:41

Strath - interesting - but could you advise - "EPCs heading"?

[strathroyal] 03/3/2018 13:37

Although the Lot List doesn't yet seem to be available on Allsop's website, the list of properties has been published under the EPCs heading. From this I make it that LSR has 16 properties in the auction -

116,117,126,127,128,129,133,134,137,138,141,142,148,149,150 and 151

[hindsight] 01/3/2018 13:10

If use 5.5p for Eurovestech, then I have ~75p for Dil2 nav, appears reality is bit distant from quoted nav

[hindsight] 28/2/2018 16:46

Thanks Tiltonboy. I think they are valuing EVT at nav ie 11.7p so 3.7m

[tiltonboy] 28/2/2018 16:38

I'm obviously being a bit dense here, but I can't make the sums add up:

18.3m LSR = £5.7m
31.9m EVT = £1.9m
Cash = £0.9m
------
£8.5m

In one part of the DIL2 R & A they say that the two investments are 91% of NAV, and in another part 56.5%.

Are they valuing the shares held in Treasury as an asset?

[tiltonboy] 28/2/2018 16:12

I had a look at buying DIL2 as a cheap way into LSR and Eurovestech. I've got a relatively small holding in Eurovestech already, but it has not performed well. The management just seem happy to rape fees from the company, and even had the audacity to issue £400k of shares from treasury at 5.5p recently, against an NAV of 11p.

Toluna is the jewel in the crown, but they seem unwilling to sell the holding for some reason!

[hindsight] 28/2/2018 13:31

Had look at Dil2 and made LSR holding worth ~50p, cash ~9p and the unknown Eurovestech ~~~~23.7p(if take last 11.7p nav and discount 30% get 8.19p value on it). So thats 82.7p vs buy price of 86p on Dil2. Guess depends what Toluna is worth as thats main Eurovestech holding

[strathroyal] 28/2/2018 12:25

Dil2 holds its AGM on 7th March and has confirmed its intention to distribute shares in LSR to its shareholders in specie by the end of March. It has also confirmed today that it will delist on 03/04.

How does this affect Brett Miller as presumably he is on the board as a representative of one of LSR's largest shareholders, which won't be the case for much longer.

[hillofwad] 16/2/2018 08:46

Skyship - Well at the same time they recently announced the sale of a larger lots(geographically unspecified) by private treaty which attracted a larger discount than the tiddlers

Th "stronger" ones are are more prone to sensitivity in price changes as they are valued with a higher multiplier .In addition the last report flagged up that 60% of the properties had leases with less than 6 years to run and a further 13.5% between 6-9 years

Take for example a bank with 5.5years to run last September More closures imminent so any investor will attach the risk of having to re-let to a lesser light and maybe lower rent Take a typical market town in a 80% pitch. This could push the yield out very easily from say 7.25% to 7.75% as the lease dips below 5 years It doesn't sound a lot but its nearly 8% of the capital value

I really don't subscribe to they are keeping the best to last They cant stop the clock on the leases

[skyship] 15/2/2018 16:55

eeza - Not so in this case - Internos deliberately set out to liquidate the Northern tiddlers so as to strengthen the overall portfolio

[strathroyal] 15/2/2018 16:54

Skyship - recent update 'The company now owns 151 properties, where we are yet to exchange contracts for sale, reflecting £42.7M in aggregate value.'

[eeza] 15/2/2018 16:47

The easiest always sell first.

Because they are the usually the most desirous.

[skyship] 15/2/2018 16:42

eeza - the hardest to dispose of were those in Scotland & The NE - practically all gone...

[skyship] 15/2/2018 16:40

Weren't we down to 141 back mid-Jan; so now c125ish surely? Not keeping count!

[tiltonboy] 15/2/2018 16:37

eeza,

Why are they the hardest to dispose of?

[eeza] 15/2/2018 16:33

Also the 149 which are the hardest to dispose of.

[strathroyal] 15/2/2018 16:28

Lot 54 from the earlier Allsop auction now showing as Sold After. Only 149 to go!

[tiltonboy] 15/2/2018 08:37

hills,

For once, I agree with you, and it may be that Private Treaty sales is the best way forward in that lot size.

[hillofwad] 15/2/2018 08:30

Yes very good result on Taunton Its the larger lot sizes 400-600k Quite a few of the bank investments failed to sell yesterday

[tiltonboy] 14/2/2018 16:11

Taunton went for a decent 150k v 120k guide.

[hillofwad] 14/2/2018 15:57

Quite a few at the auction today not making reserves

[strathroyal] 13/2/2018 20:41

A strange one but Lot 60 has been withdrawn from the Acuitus sale with this update, 'The tenant has informed the seller that they are temporarily not trading from the unit due to staff shortages. The auctioneers were unable to gain access to the property.'

[hillofwad] 12/2/2018 11:31

Strath

Well not disputing a net 35/36 p would be a fair result I tried to buy in the other day at 30p but couldn't I have been pretty consistent on that and most investors here will be delighted if they leave the premises with 35/36 p.
Some posters have been looking at 40p which was always unduly optimistic

However the point I have tried to say this morning it won't be a great pay day for Thalassa especially as they have had their money tied up for sometime so its hard to see them sit back and slowly watch their money come home perhaps with a small haircut .What was the point of their investment?

I think the 400-600k range is where there might be some damage I think maybe they have sold the crown jewels for a fair price

[skyship] 12/2/2018 11:24

We all have our views on the final outcome here; HoW always the more bearish, perhaps more pragmatic. Anyway here are the stats:

Assumptions:

# Offer price: 31.2p
# Payout: 35p-38p
# Payout Date: 31/03/19

@ 35p GRY = 10.7%; Upside = 12.2%
@ 36p GRY = 13.5%; Upside = 15.4%
@ 37p GRY = 16.3%; Upside = 18.6%
@ 38p GRY = 19.1%; Upside = 21.8%

[strathroyal] 12/2/2018 11:11

HoW - I'm not ignoring any facts but neither am I speculating future outcomes. These 16 sales are, as I said, a very good result. Future sales may indeed only be fair, we wait and see... I remain optimistic.