Urban Logistics Reit Share Discussion Threads

[lefrene] 07/11/2024 10:26

Certainly a very able team when it comes to trading properties, and they are working hard at delivering a decent dividend. If property is your thing, this looks a better bet of getting income from property, than messing with all the hassle of a 'buy to let' house rental.

EI I suspect you are correct.

"QuotedData's view: The manager has made encouraging steps in delivering on its priority to grow earnings and achieve a fully covered dividend. Capturing rental growth within its portfolio, where it attained a 21% uplift in rents on lease events in the period, is the manager's bread-and-butter. It is also undertaking an asset recycling programme, under which it acquired four properties in the six months, utilising capital released from the refinancing of a portion of its debt.

Further portfolio recycling can be expected, and post period end the company sold a 'core' asset for £7.7m at a 4.65% net initial yield and bought a vacant asset in Dunstable for £3.6m, where the manager completed a letting between exchange of completion resulting in a net initial yield of 7.1%. If this blueprint can be replicated, the positive impact on earnings will go a long way to achieving a covered dividend."

[essentialinvestor] 07/11/2024 09:58

Appreciate the views.

Looks to me as if SHED will be available under £1.10 again, but let's see.

[williamcooper104] 07/11/2024 09:55

With BBOX you've got better growth prospects via their huge land bank plus you've got better management with a better balance sheet On an EPRA EPS basis BBOX aren't that more expensive than SHED The one thing you shouldn't judge them on is who has the higher divi yield

[jbarcroftr] 07/11/2024 09:42

I have been buying both this morning

[essentialinvestor] 07/11/2024 09:18

Nick, how would you view the current SHED value v BBOX - aware we are not comparing like with like..etc, but you hopefully get my meaning. Thanks.

[nickrl] 07/11/2024 09:11

Reasonably positive prognosis although I suspect the impact of the budget may temper their forecast of further improvement. Vacancy level upto 8.1% but have an asset disposal in hand to reduce that quite substantially. They've dealt with short term debt refi albeit when you look at the detail there's quite a cost to doing it early and given IR prognosis you have to wonder whether that was best decision at the time but given post budget blues on gilts certainly looks to be. FY divi forecast looks just covered based on projected NRI and a 6.7% yield is reasonable but guess it depends how much impact the budget now has.
As an aside good presentation material others could learn.

[skinny] 07/11/2024 07:04

HIGHLIGHTS



Resilient Financial Performance

· Gross rental income of £30.6 million +3.0% (Sept 2023: £29.7 million)

· Adjusted EPS1 of 3.57 pence +3.2% (Sept 2023: 3.46 pence)

· IFRS profit of £10.2 million -39.6% (Sept 2023: £16.9 million)

· Interim Dividend per share of 3.25 pence (Sept 2023: 3.25 pence)

· EPRA net tangible assets2 ("NTA") of 158.05 pence per share -1.4% since March 2024 (Mar 2024: 160.27 pence per share)

· IFRS net assets of £748.4 million, -1.3% since March 2024 (Mar 2024: £758.6 million)

· 99.6% of H1 rents demanded were collected (Sept 2023: 99.1%)

· Total Property Return of 2.4% for the period (Sept 2023: 2.3%)

[scruff1] 06/11/2024 17:59

So do I skinny, which is what leads me to conclude that actually I am the biggest loser - especially as BP. and LLoy have also stuck the boot in. Doesnt seem too long ago that the sunny uplands appeared for a short time.

[essentialinvestor] 06/11/2024 17:11

Not sure I should admit this one, but I bought a small amount of BBOX before the close. I also bought back a few GRI that I had flipped at £2.30.

We were fortunate US equity markets powered ahead today, that may not be the case tomorrow.


Anyone fancy Segro..?


What I'm trying to access is the discount the market may want in a higher for longer rate environment.

A Trump presidency is unhelpful for UK property assets - not a political point before anyone shouts ;.

[skinny] 06/11/2024 16:42

I hold both 🙄

[guest16] 06/11/2024 16:38

Indeed, BBOX has underperformed the sector even more than SHED. As a SHED holder I take some solace from that.

[skinny] 06/11/2024 16:00

Surely BBOX is the biggest loser since September?

[essentialinvestor] 06/11/2024 15:59

May be, they have geared up the balance sheet just before yields began rising rapidly again, however tbf they are thinking longer term.

[guest16] 06/11/2024 15:55

SHED has underperformed the Real Estate sector since early September, the week before it made its announcement on performance and asset purchases on the 17th September. Perhaps the market is getting nervous about tomorrow's interim statement.

[essentialinvestor] 06/11/2024 13:23

The budget has been unhelpful but this is wider than the UK, it's multi country.

However, our cost of borrowing is now significantly higher than major European competitors.

France, Germany, even Spain, can borrow at lower rates.

[lefrene] 06/11/2024 13:18

Builders are down too, perhaps a credit squeeze is looming? Starmers moves are damaging to UK employers, my guess there will be layoffs and a general decline in demand on a broad scale. If it's thought that it will translate into less demand for goods transfer sheds, then some will sell, despite this being a sensibly run business.

[essentialinvestor] 06/11/2024 13:13

What's spooked this, ah, take a look at gilt yields..

UK 10-yr yield has pushed through the Truss peak, the UK 30-yr currently yields over 5%.

I'm surprised the sector is not selling off harder today.

[skinny] 06/11/2024 13:00

Its not pretty :-

[its the oxman] 06/11/2024 12:54

What's spooked this down so far? 114p

[essentialinvestor] 05/11/2024 11:15

SHED beginning to look attractive to me -
barring some equity market plunge.

Likely to be taken out with increasing sector consolidation, all be it not at NAV.

[citytilidie] 04/11/2024 08:31

BBOX used to have frequent placings when raising money, where they allowed shareholders the chance to get in just above NAV. I applied for at least 4 of these several years ago, but that was before the huge discounts they trade at now. Certainly one of the better property companies in my view, that also pay a decent and secure dividend.

[essentialinvestor] 01/11/2024 17:42

It's quality alright, which explains the meger discount.

Does anyone have a view on BBOX, thanks.

[spectoacc] 01/11/2024 16:45

Agree SGRO, & if I thought the economy was on the way up after the Reeves horror show, that'd be the one I'd buy ;)