The Local Shopping Reit Share Discussion Threads

[tiltonboy] 03/4/2017 16:38

You will only see a return in 2018 if they manage to sell the whole portfolio.

[frazboy] 03/4/2017 16:32

"I think you two must be on the bid"

Not me. I have quite a few, and quite a few more via my holding with Thalassa. No plans to buy/sell any more unless new information comes to light.

[gfrae] 03/4/2017 16:26

i meant 2018

[gfrae] 03/4/2017 16:24

From memory the schedule (and so far they seem to be on shedule)is to return funds by early 2017.
I think you two must be on the bid ?

[gfrae] 03/4/2017 16:24

From memory the schedule (and so far they seem to be on schedule)is to return funds by early 2017.
I think you two must be on the bid ?

[gfrae] 03/4/2017 16:21

frazboy,
assuming 39p is reasonable based on sales to date,one might add a bit for the better quality assets are to follow which may be sold in one block possibly at a premium and with much lower costs and add a bit of income and you may be looking at the mid 40s ?

[gfrae] 03/4/2017 16:13

I am trying to calculate total return to shareholders based on sales to date and assumptions of future sales prices.

[frazboy] 03/4/2017 16:11

gfrae,

The only relevant comparison is the NAV in the last set of accounts. On that basis, if we were to assume 5p in the pound of sales costs (and I'm looking forward to more information on this too), then we would be returned 95p in the £, or just under 39p per share. This figure is calculated from the sales during this financial year, which have been pretty damn close to NAV when aggregated. This assumes there that there are no profits/losses between now and the return of the capital.

I suspect/hope there is upside in the "Core".

What is critical to the investment in this company is the timing of the return of the capital. If it comes back to us end 2018/start 2019 then it's a very good investment. If the sale of the "Core" drags on then it starts to look much less attractive

[tiltonboy] 03/4/2017 16:06

I'm only interested in what they sell assets at in the future, not what the average is, which includes sales from 2013.

[tiltonboy] 03/4/2017 15:59

gfrae,

They started the exercise years ago.

[gfrae] 03/4/2017 15:57

tiltonboy,
Surely it is . 3 % is the average in excess of book value that the properties have been sold at since they started the exercise. If you very conservatively assume that the selling costs are 5.1% over the same period then you have sales since the exercise started of about NAV less 2 %, ie about 43p. Presumably with sales of the higher quality properties to come prices may be higher and costs lower.
Plus,of course,accumulated income,less some further costs no doubt.
Anyway,I have put some more of my money where my mouth is !

[tiltonboy] 03/4/2017 15:47

gfrae,

The 3% figure includes the properties sold years ago, and I'm not sure it's relevance in mentioning it now.

[tiltonboy] 03/4/2017 15:45

I have ascertained that the majority of the costs are on sales where the buyer is not VAT elected, which is obviously the reason why they have been trying to sell the corporate structure rather than selling the properties piecemeal. I would welcome the comments of hillofwad on this, as he has more of a handle on these sort of matters, and was a proponent of selling the properties individually.

I think we will find there is more disclosure in the interims which are out in Mid May.

[frazboy] 03/4/2017 15:32

Tilts - did you get any response from the company on speeding up the sale of the "Core" properties? Plus, any thoughts as to what precisely "Core" means? I guess I take it to mean that the core is properties that are geographically grouped (multiple groups), or, that are on average, slightly better quality.

[gfrae] 03/4/2017 15:23

If sales to date are at a premium of 3% to NAV and costs are estimated at 5.1%. Then at the moment we are looking at raising very approximately about 42pps plus accumulated income,less further costs no doubt.
40pps plus looks easily achievable.

[frazboy] 03/4/2017 15:21

Interesting update from the company

On the positive side:

9% premium

On the negative side

5% Cost of Sales - I had 3% pencilled in

And...

"well placed to meet the timetable contained in the Roadmap for Property Disposals"
"The Company also stated its intentions to sell a limited volume (£5m) of higher quality, lower-yielding properties. The auction sales during March were primarily of this nature."

A broadly neutral statement in light of the recent rise and discussion on this thread

[tiltonboy] 01/4/2017 12:05

End of tax year stuff to do, and I have no interest in seeing us get walloped!

[badtime] 01/4/2017 11:55

Yesterday ..hmm might explain why Sky hasn't replied either :(Part of it was re Tuesday..I was wondering if you were coming down?

[tiltonboy] 01/4/2017 10:39

When did you send it? I havent got anything in my inbox

[badtime] 01/4/2017 09:42

Lol....I'm not in the same league as you lot...you know I struggle posting more than one line :)Ps...you not replying to my email :(

[tiltonboy] 01/4/2017 09:35

Your turn now badtime!

[badtime] 01/4/2017 09:29

Interesting batch of posts ..thanks to all

[hillofwad] 01/4/2017 06:51

Frazboy
Yes totally agree with you the commercial property investment market for smaller lots always improves as punters fear the residential is going west I agree with Allopps some of the prices were very fothy especially as the auction concided with the EU trigger date As Tilts says all augurs well I would say that the properties LSR placed in auction represent a typical x-section of their portfolio

I also think they can have confidence now in increasing the throughput

I think shareholders should be well satisfied with the results I am very happy that depsite the non management of Internos the properties will effectively sell themselves

There are a number of investors who are doing the following
Buying a shop and residential part in a company selling the long leasehold interest of the shop to their SIPP in an arms length transaction and keeping the flat getting around the SIPP rules of owning residential The flat is coming in cheaper than its open market value on the basis of the sum of the parts is greater than the whole

[tiltonboy] 01/4/2017 00:22

jamiejark,

Thanks for highlighting Allsop's comments. It seems to augur well for LSR.

I wouldn't normally read an article spammed across numerous boards, but the guerillainvesting link above is a must-read.