Uk Commercial Property R... Share Discussion Threads

[cartan1blue] 25/6/2022 14:49

Should be buying back stock.

[spectoacc] 22/6/2022 16:46

Been adding, but as others have said, everything getting cheaper. Opportunity cost in a bear market.

[giltedge1] 22/6/2022 15:53

Bought some at £ 0.77 like fully let modern industrial portfolio, no ESG issues & currently have fully let new builds under construction, low gearing. Hopefully dividends on an upward path.

[hugepants] 22/6/2022 11:09

Yep and quite a few others now on 30%+ discounts ie. LAND, BLND, EBOX

[hindsight] 22/6/2022 09:17

Unless spreadsheet wrong, have this at 30% discount now which is predicting quite brutal NAV falls when consider low LTV 12.6% effect on asset price falls

[spectoacc] 10/6/2022 20:57

They could bid in shares with their lower premium, but as per BREI thread, I wouldn't accept anything less than last NAV (eg 5% discount to current), & it doesn't seem Oakshott's modus operandi. They have - as you say - invested in REITs previously, tho I agree this is fairly large.

[skyship] 10/6/2022 20:49

Specto - as I stated on the BREI & VIP threads, I think there is more to the VIP holding than meets the eye - I think it is too large to be just another of their REIT investments. VIP is currently repaying and rescheduling debt; perhaps all part of some nascent corporate action.

[spectoacc] 10/6/2022 16:48

Good luck. Pre-Covid tho, SLI was at par, and BCPT at a premium :)

Those days will return IMO - one day.

Don't see anything much in VIP's BREI holding - doubt they've the firepower to add to it, being geared already, and if they sold again they'd weigh the price. Waiting to see who the recent seller's was, if declarable

Well done CLI.

[skyship] 10/6/2022 14:59

Well, CLI gave a good run up to 230p, sold and now watching as they retrace to more tempting levels again. BREI disappointingly weak, though just XD the 1p dividend. Remains a very interesting prospect with VIP's recently declared 6% stake - discussed that on the BREI & VIP threads; but so far hasn't developed any meaningful discussion.

Here at UKCM this once institutional favourite now lagging down to a 26.3% discount. Bought an initial sighting shot at average 82p...

Pre-Covid these always traded at a c5% discount.


free stock charts from uk.advfn.com

[spectoacc] 15/5/2022 18:24

BREI's my largest holding, but also very keen on BCPT, and UKCM too. Horses for courses, but isn't all about the yield for me. All 3 are different (as is SLI, which I'd fancy again a bit lower rather than just on XD).

[hugepants] 15/5/2022 17:30

BREI a best buy? Really? It's on a fairly mediocre yield of 4.2% which is only marginally above UKCM's. SLI has the same portfolio, same discount but has a 20% higher yield. It also has a lower LTV and looks more likely to be able to increase its divi than BREI.
CREI also looks better with a 30% higher yield but a smaller discount to NAV

[skyship] 14/5/2022 18:46

Pulling back to more tempting levels; but not there yet - waiting to re-join at c80p.

Current Best Buys still CLI & BREI.

[nickrl] 12/5/2022 09:49

reads like income is leveraged to occupancy to me

[spectoacc] 12/5/2022 07:57

Distinct lack of returns information in what looks a very chunky deal.

[spectoacc] 04/5/2022 10:22

Outlook statement (for want of a better description) worth a read:

"Having fully invested its available cash in the final quarter of 2021,
the Company has a strong near-term investment pipeline which presents a
number of opportunities to add further high quality assets which are
earnings accretive to UKCM's portfolio while prudently increasing
gearing. As previously stated, the Company is targeting primarily
residential asset classes, life sciences, best in class offices and
other operational assets where it can partner with an experienced and
skilled operator and which are supported by strong underlying real
estate fundamentals. This is in line with the Company's strategy to
invest in future fit assets that are benefitting from the long-term
structural changes in both the economy and society."


"..Primarily residential, life sciences, ..offices..". Sets them apart a bit from the "we want to buy more sheds" lot.


I think inflation is going to keep NAVs ticking along - if you look historically, in periods of high-ish inflation, REITs tend to outperform, as you'd expect with hard assets. Eventually, if it all goes on long enough, debt rescheduling will become more of an issue for all of them - what is now low single figures, and years away, might eventually have to be rolled much higher.

But no question the recent NAV rises have been amazing/nuts - most are doing in a qtr what you might be happy with in a year. Can see those reducing, but not ending.

[nickrl] 04/5/2022 10:14

Specto as with majority of REITs/propcos we are just getting back to where we were pre covid so question is where do we go from here? My own view is qtrly valuations will be a few percent at best now and more likely plateau as this year rolls on and the full impact of cost living crisis starts to seep through the economy.

Good to see a divi uplift although not sure that they can cover it at the cash level so are they back to feeling confident enough to run it at a deficit again. Mind you this always seems like its a cash cow for Phoenix.

So i make discount above 20% again perhaps they will be subject to the much vaunted sector consolidation that is being talked about!.

[spectoacc] 04/5/2022 07:29

Yet another excellent NAV release, after previous strong NAV increases from BREI, BCPT, SLI.

Now perhaps isn't the time to be trumpeting their nearly two-thirds Industrials weighting tho, after what happened in the market yesterday - SGRO, BBOX etc.

Divi edged up again - still at the lower end of small REITs, but UKCM still feels a quality play.

Adding a few on weakness.

[nickrl] 16/4/2022 14:04

Full financials were out this week which shows that dividend isn't covered at the cash level currently by a fair margin. Mind you lease incentives took out c8% of income so as they run out cover will naturally improve even if nothing else does which it will from acquisitions and asset mgt. With just over 60% in industrials most the activity was in that portfolio with plenty of positives that boost up rent when even the inflated ERVs are being exceeded. Retail side doing alright on deals with this one a standout

"Junction 27 Retail Park, Leeds

In the final quarter of the year a new 10-year lease was agreed with existing tenant Currys Group Limited at a new rent of £806,440 per annum, more than 30% ahead of ERV. Currys"

Given the high industrials its surprising still on a discount given premia the likes of LMP are commanding.

[spectoacc] 04/3/2022 09:19

Knowing when to deploy it will be tricky, but a fair chance a crash is coming IMO. Russia not a major cog in the world's financial system, but it's the balance on a lot of commodities - oil, gas, wheat, aluminium, uranium (Kaz), palladium, copper.

And as of right now & for the foreseeable, it may as well be N Korea.

[skyship] 04/3/2022 08:56

Only trading at the margins whilst maintaining over 30% CASH.

Downside partially protected with SUK2; but too small an allocation.

[spectoacc] 04/3/2022 08:51

Good luck. Like UKCM, think it's fairly high quality & nibbled a few back too at 74.75, but think macro is going to get a lot worse before it gets better.

Market finally waking up yesterday & today to the world having changed - has taken bizarrely long.

[skyship] 04/3/2022 08:46

Bought back in at 74.8p - discount now up at 26.7%.

[spectoacc] 22/2/2022 08:50

Been finding SREI very difficult to pick up! Have sold the UKCM again, still running the original.

[skyship] 22/2/2022 08:47

Blast - forgot to look at UKCM first thing so missed that sub 76p offer. Concentrating on SREI & the PE trusts...