The Local Shopping Reit Share Discussion Threads

[tiltonboy] 06/2/2018 13:05

Mixed bag in the morning session at Allsop's.

Lot 54 - didn't reach the £140-160k guide (£132.5k)

Lot 61 - sold for £174k v £120-140k guide

Lot 63 - sold for £49k v £40 - 50k guide

Three more this afternoon.

[tiltonboy] 31/1/2018 22:41

strath,

The £2,473,525 is the nominal amount that they can buy back, which when divided by the nominal value (20p), means they could buy back 12,367,625 shares, which is 15% of the equity.

I want to speak to them about a couple of things, so I will add that one to the list.

[strathroyal] 31/1/2018 19:24

Tiltonboy - I think that the reference in the AGM notice to repurchasing 10% of the equity is incorrect. In previous years Resolution 10 has stated the same monetary figure (£2,473,525) but stated that is 14.99% of shares outstanding. That figure seems correct and I'm not sure why they've amended it this year. Or have I got it wrong?

[tiltonboy] 31/1/2018 14:58

AGM is on 1st March, where there is a Special Resolution seeking the authority to buy back 10% of the equity.

[tiltonboy] 31/1/2018 14:33

From 1 October to 12 December, there were a further 11 sales bringing in £1.6m.

There are no longer any properties in East Anglia (£660k at year end), and there have been sales of three West Midlands properties which raised £550k, and takes that portfolio down to £4.5m.

What we do not know is from which geographic portfolio the Private Treaty sales were made.

It will be interesting to see if there were any Private Treaty sales to report on in January.

[strathroyal] 31/1/2018 11:25

I see that the Annual Report is on the LSR website today and whilst most of this information has already been made public, some additional info is provided regarding remaining valuations of the portfolio, which gives an insight into what areas property sales were made in during the year.

Two areas stand out to me, firstly London and the South East now account for over 30% of the portfolio by valuation. Secondly, Scotland is down to 4.5% from 11.1% of a somewhat larger portfolio last year. Indeed,I estimate that there are just over 100 properties still charged to HSBC but only the large Airdrie property appears now charged in Scotland.

[hindsight] 31/1/2018 08:17

Thx for info, personally have pulled my bid had on the book as feel maybe able to buy more lower, if patient

[gfrae] 30/1/2018 23:31

I can't imagine Thal buying them other than at a substantial discount eg 28p or less.
Why would they buy these shares which are trading at a smaller discount to cash than their own paper?
Much better for us shareholders if LSR buy them in for cancellation at 28p. They can borrow at 2.5% if ncessary.

[jmf69] 30/1/2018 19:47

Already over 25% and dil2 own 22.2 %

[tiltonboy] 30/1/2018 19:21

Could go to 29.99%, without making a bid.

[jmf69] 30/1/2018 18:32

Would give them enough shares to take control?

[jmf69] 30/1/2018 18:31

Could thalassa pick up more lsr shares now they have all that money burning a hole after the wgp sale?

[tiltonboy] 30/1/2018 18:22

I have picked a few Eurovestech up recently, so contemplating buying DIL2 on a 13% discount.

Looks like there will be a substantial overhang, unless someone takes the lot.

[skyship] 30/1/2018 17:50

Yes, interesting. If they issue their LSR stake to shareholders then there will be a hoard of sellers. That would provide great buying opportunities; but surely would hit holders in the short term.

On the other hand LSR could buy the stock in for cancellation at a nice low price; boosting the NAV slightly.

All supposition at this stage...

Any thoughts Tilts?

[strathroyal] 30/1/2018 17:31

An interesting announcement from DIL2:

hxxp://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/DIL2/13513517.html

[tiltonboy] 26/1/2018 16:45

Nothing in Pugh for next month.

[frazboy] 25/1/2018 15:01

thanks strath, i did think there was something not quite right with my last post!

[strathroyal] 25/1/2018 14:49

frazboy - In your post 2443 you did state Nos 5 but that should have been Nos 6 that had 40 charges at that time (nos 4 & 6 being the main trading subsidiaries). However I see that Nos 6 has now registered a number of Satisfactions on the 24th January so we're now down to around 130 charges remaining so hopefully something is happening.

[frazboy] 25/1/2018 13:17

For what it's worth the 40 charges at Nos 5 have gone (if I'm reading that correctly)

Also disappointed by the number of properties thus far put forward for auction, so i do hope there's something afoot.

[strathroyal] 25/1/2018 12:44

Looks like there is a danger of deja vu here. There are only 8 properties being auctioned by Allsop & Acuitus next month, of which 7 are below £200k. Notably there are no Scottish properties in the auction whereas Acuitus are often used to sell one or two of these.

The fact that the number of properties entered is out of line with the comments made in the Annual Report suggests that Internos are negotiating the sale of one or more of the regional portfolios. This takes us back 15 months or so, here's hoping there is a more positive outcome this time.

[tiltonboy] 24/1/2018 12:25

Looks like two small lots in the Acuity auction on 14th February:

Lot 57 - Taunton
Lot 60 - Milton Keynes

[redhill9] 17/1/2018 10:54

I suspect the LSR thinking will be that so long as there is debt outstanding it makes sense from a NAV perspective to use any surplus cash to pay this down rather than make an interim distribution to shareholders. However, with their debt now quite cheap if they have the option I'd rather I had any surplus cash in my bank account under my control rather than it offsetting cheap debt.

[frazboy] 17/1/2018 10:36

i'm not really sure what to read into it Strath, there was certainly no hint of any properties being bundled off in the FY results, but that was a couple of months ago, and I'm sure there will be industry watchers.

Like you I would like to see a capital return prior to the eventual wrap up, but the company has given no indication that that is the plan - I'm not sure why that is, presumably it would only bring forward the first capital repayment by 12 months at best, so is presumed not to be worth the cost, or there is additionally complexity in doing so...?

[strathroyal] 16/1/2018 16:25

frazboy - We agree as i'm counting the part satisfied as therefore outstanding so that's 141.

HSBC have released these properties at the director's request as shown in the accounts but that then begs the question what do LSR want them for? The report says to improve liquidity but what does that mean? After all, at the end of the day all of the properties will be disposed of so why not simply pay the bank off from the next £20M of sales?