Urban Logistics Reit Share Discussion Threads

[spectoacc] 21/2/2024 08:32

@scruff1 - UKCM looks a given, with Phoenix support, unless BBOX shareholders say no.

API I don't think will fall to SHED or CREI - why would API shareholders give the co away, at a discount, to REITs with falling share prices.

But the issue is that neither BBOX nor SHED can be trusted now. Aways felt SHED had the best management in the business, perhaps second only to SGRO's.

Now they can't be trusted (must admit had a wobble with them on the Tufnells buys, and sold out then, but had since returned).

[scruff1] 21/2/2024 08:24

Specto
Bear in mind neither is actually a done deal yet

[essentialinvestor] 21/2/2024 08:24

I'm hovering but not hoovering ;

[cwa1] 21/2/2024 08:22

So...at what point is it worth having a punt at SHED then?

I've just released my CREI purchase back in to the wilds before folk realise that after SHED's drop and CREI's relief rally, CREI will soon be back in pole position to get API ;-)

[spectoacc] 21/2/2024 08:21

Both BBOX and SHED have royally f'd up, two great sector specialists, last mile & sheds, seemingly now empire-building amongst the generalists.

Why didn't the two of them just merge? Or sell themselves to Segro. Or keep doing what they've both been doing. Or buy WHR.

Anyway - the market is clear, CREI's up 6% in the hope it no longer buys API, SHED's down 6% in the fear it does. Enough said.

[scruff1] 21/2/2024 08:15

Its been underwhelmed for two years. Was just beginning to show signs of life and its been throttled again, Same with BBOX. Hard work this. Back to sleep

[spectoacc] 21/2/2024 08:15

I was one of the original capital providers for SHED, I know their portfolio, and management, and I know both of those at API too.

"Sell off what they don't want" - good luck with that. How's the market for half a dozen big offices atm?

[igoe104] 21/2/2024 08:13

The market has a very short termist view at the moment. Folkz are only thinking for the here and now, rather than long-term

[skinny] 21/2/2024 08:06

The market looks totally underwhelmed.

[igoe104] 21/2/2024 08:04

Over 90% are quality assets, I don't know why SA is getting his knickers in a twist. Just sell the other bits off.🤷

[igoe104] 21/2/2024 07:59

Sell off the ones that don't suit the portfolio and keep the quality assets. Calm down spectoacc

[spectoacc] 21/2/2024 07:59

@ammons - per @Skinny's link, the Industrial is fine, albeit little in SHED's area of specialisation.

Now click on the other tabs!

[ammons] 21/2/2024 07:58

Perhaps the API assets aren't as bad as you think they are, spec?

[skinny] 21/2/2024 07:09

Post 683 :-

[jombaston] 20/2/2024 19:04

We need to vote against.

The terms only work if half of API assets including all the offices can be sold quickly to repay the expensive API debt and reinvest 20% in desirable assets.

This is a risky deal for SHED shareholders but a good deal for management who keep their jobs and make money on the side (see note 4 in SHED announcement)

Surely, someone wants to buy SHED at 20% below NAV? BBOX,SEGRO,LMP please put us out of our misery!

[jbarcroftr] 20/2/2024 18:53

I own Shed and ABRN and for that matter BBOX and SEGRO
I suppose Shed are just reacting to the current fashion of reit mergers as they can’t raise money on the market and therefore merge with a smaller reit taking the view that interest rates rates are coming down and it will be possible to sell the assets they don’t want
Personally I would have preferred a deal for Shed with either BBOX or SEGRO

[riverman77] 20/2/2024 17:45

The property portfolio has always been well managed - the problem was with the botched refinancing, which I suspect an internal risk department at ABRDN forced on them.

Yes agree cash would be better, but don't think anyone has spare cash and difficult to raise cash in current environment, so has to be a share offer. The danger is that SHED now also collapse.

[spectoacc] 20/2/2024 17:36

Well done, anyone buying API to get into CREI should do well, whatever happens.

But answer me this - who's bidding NAV? Who's paying cash?

API has been poorly managed, and whilst it has a few decent assets (and has had some decent lettings recently, albeit on long rent-frees), it's being bid for now because it's on its knees, not because it's a great REIT.

[riverman77] 20/2/2024 17:34

You keep mentioning it's a cr*p portfolio but CREI and SHED clearly see something there, and I'm inclined to agree with them. Recently bought into API as I think they have a good portfolio, but mainly as a way to get into CREI on the cheap. Interesting to see what happens next.

[spectoacc] 20/2/2024 17:28

I fear my long-held view that SHED have the best management in the business is defunct. Getting in a bidding war for a generalist REIT (a cr*ppy one at that).

This is API's portfolio - at first it looks great:

[...]


Then you realise you're just on the Industrials tab.

There's also half a dozen big offices, thousands of acres of Scottish moorland, a motor dealership, a Morrisons, a load of retail park/retail, a gym....


Edit - link hasn't worked, Google Aberdeen Property Income, click on "About Us", "Property Portfolio".

Urban logistics it ain't, anymore than BBOX's purchase of UKCM. Both seem interested only in getting back in the FTSE250, where presumably salaries are higher.

[jonwig] 20/2/2024 16:59

But SHED finds a way to raise some cash - sell off the API assets which it doesn't want, and off to the races.

Or is that too simple?

[spectoacc] 20/2/2024 16:51

Very much not what we were all hoping for:

[spectoacc] 19/2/2024 13:37

Interesting, thanks. Problem is that "Urban Logistics" describes a sector as much as it describes a co. Not sure if I was setting up a co to bid for SHED, that I'd call it that. Maybe if I was setting up a co to roll up some logistics assets.

But wouldn't be the first time something like this had happened.

SHED is well-run tho, you'd think eg WHR would be a juicier target.