Social Housing Reit Share Discussion Threads

[williamcooper104] 20/7/2024 14:02

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

[williamcooper104] 20/7/2024 13:55

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

[wshak] 19/7/2024 20:26

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.

[williamcooper104] 19/7/2024 20:07

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

[woodhawk] 19/7/2024 17:15

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.

[tradez4dayz] 19/7/2024 16:48

What are peoples thoughts on why this trades so far below nav, is it purely home reit pollution?

[hindsight] 19/7/2024 16:43

"We need to get rid of Tripple Point"

Agree, but could be argued this is one of their lesser disasters

[williamcooper104] 19/7/2024 16:07

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

[williamcooper104] 19/7/2024 16:05

The demand is still hot so they'll let it My concern is their assumed build costs look light and need further comfort that they can actually build - mainly power requirements

[williamcooper104] 19/7/2024 16:01

This isn't the thread for it Oxford Tech Park is excellent; the London offices (sorry labs ;) - not so good

[wshak] 19/7/2024 15:59

SpectoAcc,

You're right about LABS spiking and then falling back but I don't think I was conned about clearing the seller.

The market maker operating for the seller had been killing that stock for months, dribbling the stock out so it fell every week.

When I organised a group to take him out at 33.7p, the selling did disappear and the stock stopped dropping every week. I think a few in the group must have flipped the stock (as is their right) but at least LABS has established a floor now. I also think the market maker might have held a couple of million shares back for himself, knowing the overhang was gone. I didn't sell any.

With SOHO, I took virtually all the stock myself at 57p and won't be selling any as I'm looking for much higher as a long term investment. As we've seen with EBOX, you can never know when a bidder approaches the company, and it's not as if we're not getting paid well to wait with a 9.5% divi.

I see the price in SOHO has spiked a little after my tweet today. The seller had been very strict about not supplying any stock below 57p (where I've been buying for some time) so wasn't killing it as was the case with LABS. When I first started buying SOHO, it was 61p but I've had 1.365p div since then, so i guess that translates to the "spike" price today.


I think both shares will do very well but I'm probably more concerned about the risk with LABS if they can't easily let out Oxford Technology Park when complete.

[tialouise] 19/7/2024 15:15

Labs, seriously

[spectoacc] 19/7/2024 14:24

Lol fair point.

[williamcooper104] 19/7/2024 14:21

Let's not forget that in the not exactly brilliant world of UK investment trusts Tripple Point are clearly the most incompetent - I accept they aren't fraudsters so in the assisted living space there's worse But not being a fraudster shouldn't be sufficient qualification

[williamcooper104] 19/7/2024 14:19

Yeah - I'm still mulling a position in LABS - best to buy when the spike fades

[williamcooper104] 19/7/2024 14:17

Tracey Fletcher-Ray is the senior independent Non Exec at Tripple Point I wrote to her a few weeks ago with my concerns that this is a sitting duck for a cheap takeover and thus the external manager needs to be changed (they've lost TENT and are losing DGI9) Atrato (manger of SUPR) have a social/assisted housing platform, key thing is that we get somebody in with both experience and market confidence The alternative to a PE takeover (cheaply of course) is a wind down - but of course we all need somewhere to put the profits of our other wind ups into - and this should be an excellent place for that

[williamcooper104] 19/7/2024 13:33

We need to get rid of Tripple Point else this will go cheaply to PE

[spectoacc] 19/7/2024 13:20

Similar con happened over at LABS - spiked then tanked back to where it was. Just sayin'.

[aishah] 19/7/2024 13:00

@WShak1
I think I cleared the major seller in #SOHO today.

I've been buying steadily when funds allowed, got a call today asking if I would take a large chunk as a clear-out trade.

[williamcooper104] 02/7/2024 11:02

I'm also putting some ebox here Would be nice to find a more permanent home :)

[williamcooper104] 02/7/2024 11:01

It's too cheap Just needs someone to grab the nettle and restructure leases Even with that we ought to get to a just covered or only slightly uncovered divi (which means no cut given the balance sheet ) New management and some asset management with a little kitchen sinking and this should re-rate I'm more keen now in getting long term high yielders given the number of break up plays I've got - would be a shame if this is taken out - especially as would be taken out cheaply

[my retirement fund] 02/7/2024 08:16

50% discount to NAV.

[my retirement fund] 02/7/2024 08:14

9.48% yield on that!

[my retirement fund] 02/7/2024 07:59

57.6p paid. Just recycling some ebox profits.

[williamcooper104] 01/7/2024 08:49

Change of manager would really help To be fair to Tripple Point they aren't fraudsters; but that's a pretty low bar to clear, and with DGI9 they've lost all market confidence Get Atrioto in who have a social/assisted housing platform in to manage it