Urban Logistics Reit Share Discussion Threads

[spectoacc] 15/3/2024 11:57

It ought to co with the recommendation, but still time for that to be switched due to another PUSU extension.

I'm out of CREI and into API, still holding SHED. Expecting/hoping CREI get API.

[riverman77] 15/3/2024 09:31

Now sold API and bought SHED. I originally bought API as a cheap way to get into SHED, but feel the deal won't happen and in any case the discount between API and the exchange ratio of 0.469 has now disappeared, so may as well just buy SHED. Also SHED could rerate if their proposal falls through.

[elbrus55] 14/3/2024 17:06

You could write to SHED with your views [e-mail] am an individual shareholder with X shares held through Y.I note your recent non-binding offer for API and was not adverse to this proposal.Based on information I have at the moment, I would not support any enhanced offer as there is not a convincing argument that it will add value for shareholders and may be inconsistent with the strategy described in the prospectus which was the basis for my investment.Best regards,

[rimau1] 14/3/2024 10:32

Shed won't improve the offer IMO. I suspect they will now be in play as they won't raise funds to expand based on LTV (debt) and discount to NAV (equity) so in limbo. SRGO could make an opportunistic approach. Shed have already stated there are few targets available.

[spectoacc] 14/3/2024 08:31

Either SHED raise, which they'd be mad to after their share price reaction, or it's CREI's or wind-up.

Will be an interesting split vote - some for SHED, many for CREI, suspect plenty preferring wind-up.

Fingers crossed that SHED walk, dcb, and I can sell :)

API ought to have given up the ghost at least a year ago IMO.

[skinny] 14/3/2024 08:07

· Accordingly, and for the reasons outlined in this announcement, the API Board continues to believe that the CREI Merger represents the best outcome for API Shareholders, and reiterates its recommendation that API Shareholders vote in favour of the CREI Merger.

· Nevertheless, the API Board has decided that, while it continues to view a Managed Wind-Down as a less attractive option for API Shareholders than the CREI Merger, it intends to pursue such an option in the event that the CREI Merger is not approved by the requisite majorities of API and CREI Shareholders.

[scruff1] 04/3/2024 18:08

Brexit is irrelevant
I think it depends on what you believe Brexit was about. I was referring to the view expressed by Baroness Altman. But as Makinbuks says - going off topic

[spectoacc] 04/3/2024 16:56

Agreed, & not sure why they're dragging their heels over it so much.

[makinbuks] 04/3/2024 16:50

Brexit is irrelevant to this argument. The point, irrespective of their origin, is that the rules are silly and having unintended consequences. MIFID similarly should be revisited. It is virtually unfeasible currently for an ordinary small business to contemplate funding growth through becoming a public company

[scruff1] 03/3/2024 13:11

Anything to ensure that Brexit fails. Altmann has changed her tune. She was a staunch remainer.

[skinny] 03/3/2024 11:49

FCA (again) :-

[giltedge1] 03/3/2024 08:10

Segro managed a large placing at about 8% discount to NAV. So good read across for SHED still good demand. Hope my API become SHED. Tempted to also add as recent weakness due to merger,

[skyship] 24/2/2024 13:25

"in such cases.....

Read the defining words Specto.

Also, not ignoring NAV; just prioritising earnings & yield.

[essentialinvestor] 24/2/2024 12:41

I held off adding on Friday, however towards £1.15 looks attractive?.

Would be surprised if institutions do not favour SHED (over CREI) as that combo arguably gives significantly more liquidity due to size - although markets can surprise, etc

[spectoacc] 24/2/2024 11:24

"In such cases NAVs are pretty irrelevant..".

Alleluja.

[skyship] 24/2/2024 09:12

"Unlike offices, the fundamentals of the warehouse market look solid in terms of demand for space and rental levels."

This is one of the keys to the future direction of most non regional office REITs. The other major factor is reducing inflation leading to reducing interest rates.

When you can buy well-managed, good quality REITs with yields c8% from covered dividends, then really there is only one way for their share prices - UP.

In such cases NAVs are pretty irrelevant - it is the yield that counts; and with rising rents, those yields may increase yet further.

# AEWU - Yield 8.9%
# EBOX - Yield 8.3%

These are two obviously attractive examples; and I would add the special situation of CLI whose offices are prime and in prime locations in UK, Germany & France. 68% discount and 8.5% yield.

[scruff1] 24/2/2024 08:23

Im not really up to speed with this but reading the article it crossed my mind that as there are lots of (should it be attempted) sales of commercial property which I assume includes offices which are currently being dumped both here and in the States presumably because of the declining demand - isnt that a part of what both SHED and BBOX have acquired and could that aspect become a ball and chain for their expansion plans?

[ammons] 24/2/2024 08:21

Cant post the graphs in the FT article, sorry. Its dated 21 Feb
==================================================================
UK’s scramble for sheds could be the start of a deals boom.
Deals could beget deals, with bigger companies meaning increased share liquidity which should broaden investor appeal

"Men in sheds” usually refers to British retirees discussing gardening. A more active group is shaking up London’s listed property sector.

There has been a flurry of share-based takeovers focused on warehousing space. Urban Logistics REIT, whose stock ticker is SHED, is the latest to pounce, launching a counter-offer for Aberdeen Property Income Trust this week with aims to create a vehicle worth £800mn.

Commercial property is in the spotlight because of the turmoil that writedowns on US offices are causing lenders. Higher interest rates have slashed valuations across the sector. Industrial property values and logistics in particular are about a quarter lower since the pandemic-era boom in demand. But the scramble for sheds is a sign that the cycle is nearing its trough.

Shares in Segro reflect the decline — they are down about two-fifths since the start of 2022. Smaller peers have performed little differently but ambitions of replicating Segro’s success as the largest UK Reit need one thing; scale.

Hence consolidation. Before the Urban Logistics offer, API was considering a lower bid from Custodian Property. It was low enough, in fact, that some API shareholders were pushing for the fund’s liquidation over a sale.

Other deals are in the offing. LondonMetric’s all-share offer for LXi REIT, at the start of the year, will bring the urban logistics owner together with LXi’s diversified portfolio with a market value of just under £4bn.

Tritax Big Box, which owns larger out-of-town sheds, has agreed to buy UKCM to become the fourth-largest UK Reit worth about £4bn. Simply sticking property assets together doesn’t create much value; Green Street’s Rob Virdee thinks Tritax is overpaying given that UKCM’s more diversified portfolio may not fit well with its specialism.

But deals could beget deals in this sector. Bigger companies mean increased liquidity in the shares, which should broaden investor appeal. Higher valuations will be important in an expected wave of dealmaking, says Paul May at Barclays.

Assets equivalent to the size of the European-listed sector could come to market this year as private owners, including pension and insurance funds, bail out of commercial property. Private equity firms in particular are expected to shift out of less attractive property assets as funds approach their end dates.

This would reverse trends of the low-rate era whereby assets moved from public markets to private owners. The winners should be those with the ability to raise equity more cheaply: greater scale translates into lower costs of capital and improved prospects.

Unlike offices, the fundamentals of the warehouse market look solid in terms of demand for space and rental levels. That should mean plenty more action for the City’s men in sheds.

[williamcooper104] 24/2/2024 00:35

Gift link for first three clicks UK's scramble for sheds could be the start of a deals boom https://on.ft.com/49rTcmc

[elbrus55] 24/2/2024 00:14

It says they anticipate lots of private sales of commercial property assets later in the year from pension funds and insurers and REITS will need scale to take advantage of it and this is a driver for the current consolidation in Shed reits which adds little value otherwise. Comment appears to originate from Paul May at Barclays.

[skyship] 23/2/2024 20:27

EI - subs only. Can you post content; or at least the gist. Thnx...