The Local Shopping Reit Share Discussion Threads

[strathroyal] 25/5/2018 11:41

Between now and the end of September, there is only one round of auctions (July)so hopefully we will be looking at a cash return sooner rather than later.

Unless of course we have another Online auction.

[scburbs] 25/5/2018 11:34

By the end of June they should be in a positive net asset position before including the property assets. This means the gearing effect on sales at a discount will go into reverse. For instance with properties of £25m and NAV at £32m then a sale at a 10% loss is now just under an 8% drag on NAV.

They could do with commencing cash returns (or buybacks) from July. The idea of turning their attention to returning cash after 30 September is pretty snail like given the expected balance sheet position by 30 June.

"To achieve the remainder of this target, we plan to sell a further 40 assets by 30 September 2018.

...

As soon as we achieve the sales targets set out above, we will turn our attention to the best means of returning cash to shareholders."

[hillofwad] 25/5/2018 10:56

Not really just commenting on report as time ebbs away unfortunately lease ends get nearer and values deteriorate.
What was concerning with the losses is that there must be an amount of empty properties Think you will be very lucky to see this all squared upped up for,36p

[skyship] 25/5/2018 10:18

HeyHo - HoW returns as the voice of gloom again. Yesterday's Update made me think we might get a tad more than my anticipated 36p....but 36p back on the cards...hopefully!

[hillofwad] 25/5/2018 08:58

It will be valued most likely as a halfway house with some hope value that they might review Whatever the value the outcome could be +or minus 20%

[scburbs] 25/5/2018 08:35

The difference may be huge, but if there is a lease expiry this year it won’t be on the books at investment value as market value would reduce as lease reached expired, so if they did extend value could go up quite a lot.

[hillofwad] 25/5/2018 08:30

Think you hit the nail on the head in the past How do you value a shop with lease expiry this year in a secondary location where the discrepancy between investment value and vacant possession value is huge if they decide to leave

[frazboy] 25/5/2018 08:05

The markdown on the revalued remaining assets is a bit disappointing but I agree with Tilton, future discounts should be small, and Op costs are a bit higher than I expected too (prep for sale apparently). Knocked a penny or so of my wrap up valuation.

hillowad - well aware of the carnage on the High Street but we had managed to shift voided properties fairly successfully in the past.

[hillofwad] 25/5/2018 07:59

I think posters have forgotten how difficult it has been on the high street. Clearly those investments let to good covenants are maintaining their shape but empty or shops with defaulting tenants very difficult to get away for Good prices

[hillofwad] 25/5/2018 07:46

Orincor. Indeed Whateley exiting with the best deal .33p looks more realistic Getting shot of those with vacant possession could end anywhere.

[tiltonboy] 25/5/2018 07:23

A 6% mark-down in the remaining assets hopefully means that they are now realistically valued, and don't need to much more of a discount applying when sold.

Still hoping for 35p, but that might be slightly optimistic.

[orinocor] 25/5/2018 07:21

At this rate of loss 35p is the high bar. This is one rotten property business.

[hillofwad] 25/5/2018 07:17

Well it's clear that there are rental voids in the rump with increased losses 39p is now the high bar.

[jmf69] 24/5/2018 18:34

Not a big fan of Friday announcements especially before a bank holiday weekend. Hope no bad news coming tomorrow

[frazboy] 24/5/2018 18:02

Gents, the company has just announced that we're going to get our H1 results tomorrow. I hope they didn't use our funds to pay for that announcement! Particularly as they don't seem to be too clear on whether the results are FY/HY.

edit: now corrected.

[topvest] 24/5/2018 17:55

Looks like the end game is approaching here...at last!

[frazboy] 24/5/2018 15:32

Only Rotherham disappointed, perhaps 100k below NAV, who knows. The other two looked about right.

[tiltonboy] 24/5/2018 15:32

...and a decent price for Whitehaven to finish off.

[tiltonboy] 24/5/2018 14:55

Relatively pleased with 357k for Hinckley

[strathroyal] 24/5/2018 14:47

Yes tilts, a very strange auction. Up to and including Lot 40, only 13 of the 32 Lots actually offered on the day have sold.

[tiltonboy] 24/5/2018 14:36

Rotherham went for guide at 800k, in one of the shortest auctions I have seen!

[frazboy] 24/5/2018 14:33

right enough strath, being a bit dippy and introducing an extra lot! yes, so 15 sold in total at the two auctions.

watching the Acuitus auction too.

[strathroyal] 24/5/2018 14:27

frazboy - Agree with your figures on Allsop but with regards to the Online only 6 sold. Lot 1 was withdrawn, Lot 3 was unsold and there were only 8 lots.

Likewise happy with the progress, particularly as the portfolio sale seems to be properties averaging around £500k or thereabouts which were expected to be difficult to get away. However, just watching the Acuitus sale and doesn't look a good day. Hope our 3 properties are realistically priced!!

[frazboy] 24/5/2018 14:16

strath,

At the auction last week I had these lots as sold:

89(Kircaldy),133,144,145,150,151,159,160,163 - 9 in total

And at the online auction I had:

1 (pre-sold),2,4,5,6,7,8,9 - 8 in total

Two lots failed to sale at last weeks auction, and one lot (No 3, Southampton, Betfred) at the online auction. So I make it 17, but perhaps 1 or 2 other properties did not sell, but I thought they had!? Regardless, I cannot reconcile the aggregate sales price with the numbers I have for the sales prices...! Details details...

As for the number remaining to sell I had it as about 83 prior to today (but I was counting that package of 29/32 properties as sold), but about 16 have dropped off the radar (presumably the relative cheap properties that were part of the package of 29/32 properties that sales were proceeding for in previous announcements), and 8 are yet to sell (notices issued to tenants). So, I get similar numbers to you, about 104 with 8 yet to be finalised. Make sense???

It's still a bloody good update as we've got rid of some relatively expensive properties for good money, and, it seems to be the case that the cheaper properties get closer to NAV, so my estimated termination value went up a good bit today.

All in all, very pleased!

[strathroyal] 24/5/2018 09:54

Pleasing update but difficult to work out exactly where we are. The Feb update said that LSR had now sold 513 props and had 151 left. Since then updates show a further 47 props sold yet apparently we have only sold 551 and therefore must have 113 left. I make it 104 with those 8 excluded so potentially 96 (b/v around £24M).

frazboy - presumably the 18 are 15 at the two auctions (Online & Allsop)with a further 3 small private treaty sales for around a total of £285k.

tiltonboy - this does appear to be the significant sale previously mentioned and there should therefore still be at least 14 properties (b/v £2M)where private treaty sales are in hand.