I've been stashing these away for a little while at average 9% yield, so any capital growth is just icing on the cake. Love a quarterly dividend too. |
When the wind is fair, it is not just narrowing the discount to the NAV. But also narrowing to a growing NAV. A nice double whammy plus possibly a growing dividend. |
With decent management, sorting out the remaining tenant issues (even if that means taking a bit of a hit on near term rental income) there's no reason why we shouldn't get to NAV; particularly if rates fall and the wealth managers all start panicking about getting a proper yield |
In the normal scheme of things I would be poised on the reduce button. But the discount gave me pause for thought. I checked out the historic 10y discount sp/NAV. Apart from recently (and COVID blip) the biggest discount is 28.1%. If that is matched in the next 10 years then the share price would need to rise by at least 3.9%pa. When added to the current dividend yield of 8.6% my expected return is >12.5%. Better than I can find elsewhere, so staying put and riding the surge. |
IndeedHopefully we get good news on our friends at Triple PointNew manger and bit of asset management and this should trade up towards NAV Like SUPR, this is one I'd like to own for the long term; rather than get taken out by an opportunistic PE bid - a la CSH - even if that's hardly a disaster from an immediate return perspective |
This has been firming nicely recently |
Maybe of help
Social housing rents will rise by more than inflation over the next decade as part of UK government plans to boost affordable house building and shore up the finances of struggling landlords. |
 Very good summary.
The £243m Triple Point Social Housing (SOHO) Reit said it had ‘been encouraged by the number and quality of proposals’ since launching the independent review in May, which was set to consider its benchmarking and ensure its terms compared favourably to industry peers in terms of best practice.
The board said ‘significant progress in the selection process has been made’.
The high-yielding property fund has traded at a persistently steep discount – currently 46% – as it battled defaulting tenants, an uncovered dividend caused by rent arrears, and a large debt pile.
Over a five-year period, the company has seen net asset value (NAV) increase by 57.6% but the shares have gained just 4.5%.
In the past year, the shares have done better, gaining 12.7% as the fund offloaded properties – sometimes at below book value – in order to drum up cash for a buyback. However, this did little to improve the discount and a decision not to sell any more properties was made this year.
Shareholders could be forgiven for wondering whether Triple Point will remain manager of the trust when the review results are announced on 13 September given its recent track record.
At the beginning of the year Triple Point-run Digital 9 Infrastructure (DGI9) served notice on the company and Triple Point Energy Transition (TENT) is in the midst of winding down. |
Did anyone else think this was an obfuscated message that rents from the problem managers will have to come down a fair bit to attract new managers?
I bought a few more but I've had my fill now. Good luck!
Selling things at NAV and using proceeds for buy backs can increase divi cover not decrease it. |
To be honest I would prefer if they stopped all sales and just ran the assets for income thats why I am back in SOHO now Triple point will at least have to match costs of any competitor . |
This news is also due to drop anytime now :-)
In May they stated
"...The Company intends to make further portfolio sales this year. The Investment Manager is currently in the process of agreeing heads of terms in relation to the sale of a portfolio." |
V good news Validates the theory that this is fixable and isn't HOME reit Just need to ditch Tripple Point, sort out MySpace and we are away to the races (I hope ) |
Excellent news, removes some uncertainty and fully covers the dividend. Still has My Space to resolve. I have added to my holding this morning. |
Decent news...I hope :-)
20 August 2024
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
Lease Transfer
Further to the "Portfolio Sale and Lease Transfer" announcement made on 3 May 2024, the Board of Directors of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce the transfer of all 38 properties previously leased to Parasol (representing 8.2% of the Company's Gross Asset Value and 9.7% of the rent roll as at 31 March 2024) to Westmoreland Housing Association ("Westmoreland").
The transfer completed on 19 August and, up to the point of transfer, Parasol continued to pay rent in accordance with the existing creditor's agreement, being 60% of full lease rent. Following the completion of the transfer, we expect rent collection to increase to between 75% to 85% of existing FRI lease rent during an initial stabilisation period (expected to last approximately 12 months), and thereafter up to at least 90% of existing FRI lease rent. In turn, this will help ensure that dividends paid by the Company are fully covered.
The transfer is the culmination of an extensive four-month process focused on prioritising the welfare of residents, enabling proactive engagement with the Regulator by both Parasol and Westmoreland, and ensuring the transfer was undertaken in a way that maximised rental income. As well as increasing rent collection, the Board is confident that Westmoreland will provide good services to residents in the Group's properties.
Westmoreland manages 950 specialised supported housing homes. The current management team was appointed in 2020 and has successfully restructured Westmoreland, delivering four years of annual surplus and growing turnover in a sustainable way to over £15 million per annum whilst steadily increasing Westmoreland's cash position.
Chris Phillips, Chair of Triple Point Social Housing REIT, commented:
"Having successfully completed the transfer of properties, we look forward to working closely with Westmoreland to ensure that rent collection is increased and good services continue to be delivered to the properties' residents."
ENDS. |
I presume you work at TPIM Woodhawk.
Performance is all that matters and we need performance. Two years of underperformance cannot be sustainable at TPIM. |
Fieldreporter,
On your school holidays are you?
Your first post on these boards is your last as far as I'm concerned - filtered. |
Triple Point Investment Management is loathed by all and has one of the worst performance records in the city if not the world. Their performance across their entire portfolio is appalling.
I'd be embarrassed to turn up for work for fear of catcalling if I worked there. |
Whereas if you change control and keep the debt then you've just gained an asset worth about £40m (delta between cost of debt v what new debt would cost discounted back at the new cost of debt over the average life of 9 years) That's about 10p per share Of course we won't get paid out that But if we get any takeover below EPRA NAV it's worth remembering that the true NAV is considerably higher than EPRA |
The debt is interesting WACD c9 years fixed at 2.74%, secured/non-recourse, all funded by MetLife - so looks like a private placement, but it has a public credit rating which is unusual for that type of debt Why does it matter Public, rated debt often allows change of control so long as you don't subsequently impair the rating Whereas bank/private debt often simply prohibits change of control so the debt all has to be repaid on a take over |
One of the reasons I've gone so heavily into SOHO ( I think it's the cheapest of all the REITs out there) is down to the time that has passed since HOME was unveiled as a fraud.Auditors will have been crawling all over SOHO and related REITs, and any dirt would have been uncovered by now.Triple Point have been useless, but I don't believe they have been fraudulent. |
It's a bit of that, it's that they need to restructure some leases and it's Tripple Point The contamination from HOME should be gone but I suspect still lingers - it's clearly not HOME |
As far as I'm concerned, almost all of my portfolio is trading at extremely low valuations! Great for dividend hunters - I'm still stashing away great yields at these sort of levels all across the market. I suspect that in due course this will - in retrospect (of course) - be seen as a great time for investors. |
What are peoples thoughts on why this trades so far below nav, is it purely home reit pollution? |
"We need to get rid of Tripple Point"
Agree, but could be argued this is one of their lesser disasters |
Ebox is a cleaner portfolio We need a good bit of asset management here else leaving it on the table for whoever bids for the REIT Even if a sale is the best way forward (I'd rather hold) far better it's after cleaning up the problem tenants/re-cutting leases |
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