Gilt yields and the orange man Not been great for most REITs |
Disappointing start to 2025 under the new management and share price below 60p. Hoping for better but it could be a fools errand. |
Assuming the My Space properties are now managed properly and do provide a rental stream under the new manager won't this now increase divi cover?
That's the bit I was a little unsure of. |
That's it - just as with care homes years ago - the trick is to say that the income is government backed - which is true - but that just means your tenant won't have a bad debt - doesn't mean you won't get paid your rent as you're taking operating risk on your tenant being able to run the services and pay you your rent Soho isn't a total fraud like HOME but it's still had a few problems |
I'm not 100% sure but I think Gov paid MySpace to provide housing and related services. From that MySpace pay rents to SOHO. Apparently MySpace couldn't afford the rent after supplying the services so it all collapsed. I don't think SOHO got paid rent directly from the Gov otherwise obviously SOHO would just sue HMG for what they are owed. Appols if this is incorrect but I think it's close.
The divi is covered without MySpace and the properties have been moved to a new manager. |
MySpace is in administration, hardly any surprises here but where did the money go? |
Loglorry1
The Housing will always be provided as long as the Welfare system doesn`t collapse ?
People do not realise just how much housing is paid for by Welfare payments .
The vast majority of vulnerable people are drug addicts and some additional payments for support in that area are very easily axed .
In Theory SOHO will still get their money because it will affect the agencies but not the actual Landlord .
All I`m saying is, How profitable will smaller agencies be, if additional payments above actual rent , are axed ?
I have been through SOHO property portfolio on their Website and some of those HMO`S are your bog standard rooms for addicts and Prisoner`s out on Licence etc .
Last one with regard to MYSPACE , how the hell haven`t they been done for fraud ?
The monies for the rents have been paid for by the Taxpayer ( about £260 per room , per week )
If they are not paying their rent to SOHO , Who is having all that Tax money ? |
I really can't see Labour not providing the sort housing provided by SOHO. There are so many other easier targets. |
I would like to invest here .
The only problem I think brewing, is Reeves announcement that she is going to slash Welfare spending on Sick benefits .
Soho always states that they go for housing that provides the additional support .
These additional payments apply to a whole raft of things , some of them are utter Tosh as well .
If Reeves pulls the rug on some of them ? How are the agencies then placed Profitability wise ?
Will that then lead to more rent problems ?
Also if a building suddenly loses x amount in additional Taxpayer support payments , how will that affect asset values ?
Just my thoughts |
I suspect they are at quite an advanced stage with a transfer to Inclusion if they are are bothering with holding a General Meeting to facilitate it.
On the face of it good news if they can resolve the MySpace issue within the next two or three months. |
Works well providing they keep paying - feels like Tesco and Sainsbury's pose less risk on that front than social housing providers but I could be wrong.How comfortable are we with the NAV here? Looks like a bargain but the fact Triplepoint have been involved doesn't fill me with confidence... |
I guess today's announcement will allow them to transfer the MySpace assets to their biggest approved provider Inclusion. That would be about 35% of total assets. That is quite a concentration risk or in other words having most of your eggs in one basket.
However, Supermarket Income REIT who they also manage has most of their assets with sainsbury and Tesco and that arrangement works well.
Disappointing to have no income from MySpace for the best part of a year. |
Very disappointed. But with the turmoil in the gilts market and a long term risk free return of ~5% it's not so surprising. |
Hmm ..not a great start to the new year for the sp |
Huh, I bought TSLA shares, but at least I have liquidity! |
I just hope I can get back my deposit on the private jet. |
lol - caused a moment of confusion for sure - who knew a name change could cause a 100 bagger |
I'm a multi millionaire according to ADVFN. How much do they pay their staff? Too much I think. |
Hoping that from January next year, Atrato can perk up the share price here somewhat. I don't think Triple Point covered themselves in glory. Far from it. |
Ex div today |
When the sale of the £20mn "portfolio" was originally announced, the share price moved very little. This morning's 4% move was a good one to trade against, although I did not as I needed a larger move than that to justify a further purchase to top of a current moderately sizeable position.
I did like the point about Atrato coming to the aid of the current crowd - not a minute too soon. |
I took the opportunity to add this morning.
I suspect they will get the MySpace leases transferred in 2025 with the new manager in place in January. The dividend yield of 9% is fully covered now and will be more covered when the move is completed.
The NAV will improve once leases are moved and the big discount to NAV (110p vs 60p) will narrow. An advantage is that debt is on a long fix. I don't think the sale of £20m of properties will make much difference one way or the other.
Happy to hold and collect dividend. |
From todays announcement:
"Portfolio Sale Update
As noted in the interim results for the six months ended 30 June 2024, the Company had expected to complete on the sale of a portfolio of properties with a value in excess of £20 million in November 2024.
Despite successfully completing their operational due diligence and agreeing terms on the portfolio, the purchaser has not been able to close the funding required to progress the transaction at this time although they continue to pursue funding options."
Perhaps this explains the fall over the last week or two? |
Inching towards 52 week high, hopefully. Onwards >70p in the new year. |
I think there is also still a fair amount of scepticism regarding the NAV due to Triplepoints involvement - presumably that will remain until the new managers have had a chance to properly look under the bonnet of this one |
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