The Local Shopping Reit Share Discussion Threads

[tiltonboy] 12/12/2016 08:25

maiken,

They comment that they would like to "reposition the portfolio, and undertake asset management initiatives at the individual property level in order to achieve maximum value"

I would hope they are in a position to do that ahead of their own timeline.

[maiken] 12/12/2016 08:10

any reason why the "core" portfolio cannot be marketed immediately instead of 2018?

[hillofwad] 12/12/2016 08:08

So no worries on the NAV So it was the most basic reason -too expensive Unusual for a portfolio to go down the line 3 times Hope that wasnt because all the warts were buried and they came out in due diligence or running with purchasers who didnt have the wherewithal to complete a transaction Brexit would possibly of course scuppered a few

Good to see them upping the ante in sales and hopefuly they will get rid of them sooner than the timeline suggested Hopefully a small spike today might give me an opportunity to shift some more shares!!

Skyship I think you are being very optimistic at 38-40p I hope you are right The problem will be getting rid of the rump where it is likely a massive discount to market value will be required to get rid

[8w] 12/12/2016 08:07

The results statement is predictably neutral, a difficult task being completed in a professional manner. My main take is that shareholders could be at risk at the end of the life of the Company
Internode need to sell the final large rump as a single entity. If that doesn't happen and sales are piecemeal, without critical mass expenditure will be greater than income and NAV will be eroded.

[ntv] 12/12/2016 07:59

their fees should be cut in line with portfolio
ex WOOLWORTHS finance director in charge no wonder its gone down hill
poorly managed and the offers for portfolio yeah whatever!!

[my retirement fund] 12/12/2016 07:58

Heads of terms signed constrained portfolio terms etc. That really socks, ordinarily you'd make sure such costs and constraints upon such failed ventures were born by the interested parties rather than the vendors or in this case shareholders!

[skyship] 12/12/2016 07:51

Tilts - yes, but a return of one of those earlier interested parties could always happen. In the meantime selling much of the real dross condenses and smartens up the porfolio, so seems a good strategic move.

The way forward looks well thought out. I'm tempted to raise my spreadsheet target from 38p to 40p. From 28p that would deliver a GRY of 12.4% to 31/12/19.

[orinocor] 12/12/2016 07:47

Seems the NAV will start to decline as they sell more properties and cannot cover overheads.

Nothing in theses results to get excited about. Dead money for the next 12 months.

[tiltonboy] 12/12/2016 07:41

Exceeded my reduced expectations by a margin, and my only criticism would be that the marketing of the bulk should be ran alongside the smaller stuff.

Thalassa might still make a small turn!

[skyship] 12/12/2016 07:23

So, NAV N/C @ 43p. Well pleased with that; and even more so with the current profitability (interest on loans now just 2.7%) helping to maintain that figure.

Those who have been excessively critical of Internos & the Board should note this para regarding total portfolio sales negotiations:

"Heads of terms were signed and significant work undertaken on three occasions with interested parties. However, for varying reasons none of these potential sales crystallised. Whilst that process was underway it significantly constrained our ability to dispose of individual assets."

[tiltonboy] 11/12/2016 20:51

It will be interesting to see how much they expensed fighting off Thalassa!Let's hope the roadmap is clear and concise.

[hillofwad] 09/12/2016 10:47

Maybe we have been a bit harsh on the Board You can bring a horse to water springs to mind . The obvious reason why the properties havent sold is the basic one that they havent received a sufficently attractive enough offer . General feeling amongst agents its too expensive especially with all the external influenes this year Its a little bit unfair to blame me the BODS for that no doubt the harsh reality will be revealed shortly

34p is looking a long way off!

[tiltonboy] 09/12/2016 10:32

dv2015,

Sums it up perfectly.

[deepvalue2015] 09/12/2016 10:28

Once again the Board show their true colours and penchant for running a dictatorship without regard to shareholder rights. Why has it taken them two years to put Damille on the Board?(They asked for a seat in 2015) Why didnt the Board put forward Miller as a part of their slate at the General Meeting? If they are going to ignore shareholders rights why didnt they put Miller on the Board instead of Heaney? This might have avoided the GM in the first place! All very strange 'logic' from Vetch & East! At least THAL's efforts have resulted in some changes and with Damille in liquidation hopefully there will be more aggressive selling of assets and return of capital. Thanks THAL.

[tiltonboy] 09/12/2016 09:18

I'm on at 26.75p, and happy to be patient.

[hillofwad] 09/12/2016 09:11

Tilts

Sticking a few on at 28p in the hope that the market gets excited about the new Director!

[skyship] 09/12/2016 07:22

Good to see that Brett Miller of DIL2 has taken a NED role:

[tiltonboy] 08/12/2016 22:27

I picked a few up at 26.75p today, but got gazumped on the board when I re-loaded.

[strathroyal] 08/12/2016 21:34

Looks to have been a good day at the Acuitus auction for LSR. Lot 60, Sturminster Newton, which is on the Gallery (had a reserve of £60-£75K and an annual rental of £7,125) sold for £104k. Also got away a couple of empty shops with Assured Tenancy rental incomes of £125 and £70 for £37K and £50K respectively. Another property was sold prior to the auction so presumably above the reserve.

Bought some more on the back of this and looking forward to the finals next week as I don't see why the large shareholders would be happy to rebuff THAL if the results were going to be poor.

[tiltonboy] 08/12/2016 20:52

I defer to your knowledge, as it's out of my area of expertise. I did notice however that there were few other retail offerings. I will speak to the company next week after the results, with any concerns.

[hillofwad] 08/12/2016 20:19

126 That looks a result Probably the tenant buying in taking advantage of the concessionary rent
Fair play

[hillofwad] 08/12/2016 20:12

Tilts Ive been to a few of Pugh Auctions most of their stock is LPA possessions and lenders of last resort material They might be one of the larger regionals but they are really smalltime They are in no way comparable to Allsopps Certainly not suitable for anything but the absolute dross The point I make is Allsopps have successfully raised £119m this week at good prices of similar stock to those owned by Local Shop Plenty of quality and sub 6% kit Allsops are part of the team they have valued their portfolios and sold the 2large portfolios Why havenet they managed to persuade the BODS to place the majority of stock they in their auctions?
Surely their book valuations would reflect sale prices in their auctions!

[tiltonboy] 08/12/2016 20:03

Lot 126 had a guide price of 45k and went for 61k
Lot 127 went for it's 40k guide
Lot 129 is listed as sold on the Pugh site, but not sold on the results page.

[tiltonboy] 08/12/2016 19:45

Pugh Auctions are the largest commercial auctioneers outside of London, offering commercial property, residential property and development land across the North of England.