Urban Logistics Reit Share Discussion Threads

[spectoacc] 29/5/2020 15:09

I've always shied away from multi-let, but agree everything has its price. Much would seem to depend on what they do with the cash, particularly with gearing already not low.

Not convinced STP a better bet than eg AEWU (or AIRE), but in same ball park.

[nimbo1] 29/5/2020 15:06

yes Im sure shed portfolio higher quality tenant wise - however its not on a 40% _ discount to nav! results next week so could be interesting.

[spectoacc] 29/5/2020 15:04

@nimbo1 - not looked at Stenprop in yonks, tho I see they only collected 81% of qtrly rent at last report? vs eg SHED 100%. That was 5th May, am sure it's higher now but they haven't RNS'd it.

[nimbo1] 29/5/2020 14:33

Im posting here on stenprop as no-one follows is.

NAV is 145p. They have loads of cash as sold their largest portfolio asset in Europe march 2020. 55% of NAV is in UK logistics / industrial. 25% Cash and rest 'stuff' in Europe including care homes, some retail etc.

Surely its a good buy sub £1? Results in a few days and would be interested to hear thoughts if anyone has any.

[nimbo1] 29/5/2020 14:01

It is liquid at the moment. Can buy and sell in more than 50k blocks....

[dhoult12] 29/5/2020 13:56

No real volume going through today.
Am a bit surprised this hasnt become more liquid since the raise. Expect it might gap up/down in a few days.

[skinny] 29/5/2020 10:50

I hold both

[spectoacc] 29/5/2020 10:32

Both the portfolio and management better at SHED IMO - but I would say that :)

[chucko1] 29/5/2020 09:47

There is still a keen seller out there this morning. Many different buyers including myself (adding). Tight bid-offer, so you can do what you like here which is rare for SHED.

With 10yr rates at an Earth-shattering 0.20%, about 60bps lower than in January, that should see the instrinsic value of SHED at around 150p. The successful (somehow) issue at 137.5p is now more than underpinned with this report and they also still have significant cash with which to pick further spots in the market and cover their likely 6% dividend yield. Looks pretty good vs. the 5.15% of WHR, especially as many feel the portfolio of SHED is marginally(?) preferable.

[dhoult12] 29/5/2020 09:28

@SpectoAcc the results are to end of March as is the NAV which is just after the cash raise. They have £132m of cash against £209m of investment property. That amount of cash is going to have a pretty dampening affect on NAV movemement!

[nimbo1] 29/5/2020 07:39

Happy to hold for sure. Collected all the June rent. Logistics really the only property sector for solid income. (If one is after some of that!) This should trade at nav or a premium like whr.

I think nav will start to move forward - there is lot of money in property and this Sector is the only one to invest in at the moment imo.

[spectoacc] 29/5/2020 07:30

Mostly all good - if I've one disappointment it's the NAV, which I'd expected about 145p by now. But drag from purchase costs, little getting revalued upwards, & the LTIP vesting (which I've not looked at), so fair play.

[skinny] 29/5/2020 07:23

.

Financial Highlights

§ £136 million of equity capital raised in March 2020

§ EPRA NAV 137.90p per share (2019: 137.96p) reflects the fundraise and early LTIP crystallisation

§ Portfolio valuation at 31 March 2020 of £207.0 million

§ Dividends for period up 8.6% to 7.60p

§ Total Property Return 10.1%

§ Net cash of £57 million at period end

Operational Highlights

§ Nine logistics properties acquired for £20.7 million (blended 6.4% NIY) with asset management potential

§ Disposals totalling £18.4 million, all at or above book value, representing average Total Property Return of 49.6%

§ Limited void at period end of 2.4%

§ WAULT of 4.9 years (2019: 5.5 years)

§ Like-for-like contracted income growth across portfolio of 3.4%

Post period end

§ £98 million of acquisitions across two portfolios, one distribution warehouse and one development site

§ All rents due for the quarter to June 2020 were collected in full

§ Credit approval for new 5-year banking facility at reduced margin

§ Tenants continue to trade well with only two sites not fully operational due to Covid-19


more.....

[chucko1] 28/5/2020 22:58

I think your 12% is going to be 13% before too long! WHR is on fire and most believe this one to be a better bet. For me, though, I like liquidity and SHED is a little tricky on that score. WHR is easy.

[dhoult12] 28/5/2020 16:57

Cash was raised at what 138p? so shouldn't be such a drag at this point.
Hoping for a decent uplift tomorrow - despite that raise increasing the size there is not tons of liquidity in this

[jbarcroftr] 28/5/2020 16:06

One interesting point was Hardmans see it as a big plus that they have short leases and by implication some good rent increases coming up

[spectoacc] 28/5/2020 16:04

Could argue there's some drag from the remaining cash I guess - but knowing SHED, it won't be remaining for very long.

[jbarcroftr] 28/5/2020 16:02

Looking forward to tomorrow. Would like some further details on Tufnell but otherwise everything looks great. Hardmans recent review of REITs had Shed in their top six. On every metric Shed scored very well

[jombaston] 28/5/2020 16:01

SHED has been very subdued considering the action in WHR. Maybe people are waiting for the results but they've already said they have collected all the rent and the NAV figures are pretty meaningless at the moment. Or maybe, SHED isn't yet on the radar of some larger investors since it has only just beefed up after the recent capital raise.

[spectoacc] 28/5/2020 15:39

Agreed, but I would say that. WHR chart an interesting comparison.

[nimbo1] 28/5/2020 15:38

this looks under priced to me - results should be tomorrow!

[jbarcroftr] 05/5/2020 13:31

Shed has collected 100% of its March rents
As a sector last mile logistics is imho going to be one of the few hot property
sectors

[jombaston] 05/5/2020 13:03

LMP is raising money to go shopping for more urban logistics (the asset class not the company)

[dhoult12] 30/4/2020 08:29

Yes, i got 'stuck' in the placing as the broker didn't follow through with the pull instruction. Less annoyed about it now than at the time...

Still think these are a good shout. What would have taken 5 years with retail to make the shift to delivery will now try and be rushed through in 5 months. Can see large demand for sites once people realise last mile is a bottleneck in the system