The Lemon Fool

I know it was the ex-div date, but crikey.

Cheers, OLTB.

Hi OLTB
Yes 31.4p down and divi only accounted for 7.75p.
I can only think this was due to Brexit woes.

The market in general was well down today, but I sold British Land a few weeks ago because the price was drifting down and I thought London offices could take a hit.

I have subscribed for Smithson with the proceeds.

Dod

Just sayin'.

Plus, there is the other B word on the horizon, The Budget.

IMV the cause of the drop is more likely to be Fed Chairman Jerome Powell's "we're a long way from neutral" comment on interest rates.

https://www.cnbc.com/2018/10/03/powell- ... rates.html

Real estate is nothing if not a rate-sensitive sector. SGRO and LAND also got pasted today.

It should hardly be a surprise that interest rates are likely to rise.

Dod

I see - thanks chaps.

I know that we’re all about the income, but considering the general retail sector’s woes, if landlords like BLND may have to accept lower rents or indeed more properties with void periods, this may lead to reduced income and therefore reduced dividends. If I held retail and BLND which some may have in their portfolio, this may be a double whammy hit on income if both sectors are feeling the pinch.

Cheers, OLTB.

OLTB wrote:Blimey - BLND took a hammering today.

Blimey - BLND yield soared today.

Hamburgers just got cheaper ...

moorfield wrote:

OLTB wrote:Blimey - BLND took a hammering today.

Blimey - BLND yield soared today.

Hamburgers just got cheaper ...

Quite obviously true, however I'm not impressed. I've held British Land for 8 years and the sp has gone nowhere. In fact yesterday it fell into negative territory. To be honest I wish I'd dropped them before now, the income is not cheaply bought (to quote Dod I think?). There are better shares out there. I have Taylor Wimpey and Persimmon on board too. Don't be surprised if I drop BLND today....maybe.

Ian.

idpickering wrote: I've held British Land for 8 years and the sp has gone nowhere. In fact yesterday it fell into negative territory. To be honest I wish I'd dropped them before now, the income is not cheaply bought (to quote Dod I think?). There are better shares out there. I have Taylor Wimpey and Persimmon on board too. Don't be surprised if I drop BLND today....maybe.

Wow! As you may know, I entirely agree that Income is the primary aim of an HYP but your cavalier attitude to Capital Value by selling at a loss surprises even me You should have done as dod1010 reported and sold a few weeks ago. If only he would let us in to his insights before it is too late.

Seriously though, do you really think your best solution is to sell a holding that to my mind now provides a yield that is at last interesting? Should you not be thinking of a top-up? Please note that I am not a holder and have not done any research into BLND, but I am curious as to why you think it is no longer an HYP candidate?


Ian

Further to my post, I may well just do the HYP thing, as I should, and just concentrate on the income, and hold on. We'll see. If I was to sell, I've no idea where to redeploy the cash currently, as I have all those that take my fancy in my screening already. Hmm?

Ian.

I had a quick glance at the Hargreaves table of FTSE risers and fallers yesterday, and my first thought was: "blimey, some of our HYP shares are taking big hits today". It wasn't just Blnd by any means.

I would have thought worries about London office space might have impacted the company well before now, so I don't think this is the answer. My XIRR for B Land may have been hit by Brexit and Trump effects as have many other companies - which I also see reflected in the performance of some well known "HYP-like" ITs* - but the decline started before that, so what's going on? Is it just that London property is overvalued? Perhaps, it is an occupational hazard when investing in property.

Note that BATs has the shakes as well - maybe we should be doing the "HYP-like" thing and taking this opportunity to top-up - either now, or later when things really get rough, with the fall out from a long bull-market** and leaving the EU.

Arb.


*Hyp-like in the sense that they invest in a similar group of shares.

** I've often thought about this. One day, as is inevitable, we could suffer another 20-40% drop - and what would our reactions be? Sell off and start all over again building our HYPs? Hold tight, of course. But it'll need steady nerves when your capital values go haywire across the board.

Arborbridge wrote:
** I've often thought about this. One day, as is inevitable, we could suffer another 20-40% drop - and what would our reactions be? Sell off and start all over again building our HYPs? Hold tight, of course. But it'll need steady nerves when your capital values go haywire across the board.

Aha, I thought this was the purpose of the 'no-look November'. Get us in training for this moment

Arborbridge wrote:I had a quick glance at the Hargreaves table of FTSE risers and fallers yesterday, and my first thought was: "blimey, some of our HYP shares are taking big hits today". It wasn't just Blnd by any means.

I would have thought worries about London office space might have impacted the company well before now, so I don't think this is the answer. My XIRR for B Land may have been hit by Brexit and Trump effects as have many other companies - which I also see reflected in the performance of some well known "HYP-like" ITs* - but the decline started before that, so what's going on? Is it just that London property is overvalued? Perhaps, it is an occupational hazard when investing in property.

Note that BATs has the shakes as well - maybe we should be doing the "HYP-like" thing and taking this opportunity to top-up - either now, or later when things really get rough, with the fall out from a long bull-market** and leaving the EU.

Arb.


*Hyp-like in the sense that they invest in a similar group of shares.

** I've often thought about this. One day, as is inevitable, we could suffer another 20-40% drop - and what would our reactions be? Sell off and start all over again building our HYPs? Hold tight, of course. But it'll need steady nerves when your capital values go haywire across the board.

Wise words indeed Arb, thank you. I really should be a grown up HYPer, and just do what it says on the HYP tin.

Ian.

idpickering wrote:Wise words indeed Arb, thank you. I really should be a grown up HYPer, and just do what it says on the HYP tin.

Ian.

Health warning: I could well be utterly wrong! DYOR as ever. If this type of investing gets too hot, or one isn't getting a satisfactory long term result, there are plenty of alternatives

Arborbridge wrote:

idpickering wrote:Wise words indeed Arb, thank you. I really should be a grown up HYPer, and just do what it says on the HYP tin.

Ian.

Health warning: I could well be utterly wrong! DYOR as ever. If this type of investing gets too hot, or one isn't getting a satisfactory long term result, there are plenty of alternatives

You're on form today Arb. Message received and understood.

Ian.

idpickering wrote:Quite obviously true, however I'm not impressed. I've held British Land for 8 years and the sp has gone nowhere. In fact yesterday it fell into negative territory. To be honest I wish I'd dropped them before now, the income is not cheaply bought (to quote Dod I think?). There are better shares out there. I have Taylor Wimpey and Persimmon on board too. Don't be surprised if I drop BLND today....maybe.

I don't hold but I can see the dividend has been rising steadily over the past 5 years: http://www.britishland.com/investors/dividends

At 5% yield you should be buying more Ian, not knee-jerk selling (what are you going to replace with yielding >5% ?)

moorfield wrote:

idpickering wrote:Quite obviously true, however I'm not impressed. I've held British Land for 8 years and the sp has gone nowhere. In fact yesterday it fell into negative territory. To be honest I wish I'd dropped them before now, the income is not cheaply bought (to quote Dod I think?). There are better shares out there. I have Taylor Wimpey and Persimmon on board too. Don't be surprised if I drop BLND today....maybe.

I don't hold but I can see the dividend has been rising steadily over the past 5 years: http://www.britishland.com/investors/dividends

At 5% yield you should be buying more Ian, not knee-jerk selling (what are you going to replace with yielding >5% ?)

Thank you moorfield, you are absolutely correct. For what's worth BLND are up 2% as I type. I'm going to do the right HYP thing and hold on. Where else am I likely to find that yield anyway? The costs involved too. I'm staying put with BLND, the best REIT for a HYP IMHO.

Ian.

You could take a look at Primary Health Properties. Their share price does not do much but they are steady and yield around 4.6%

Dod

Dod101 wrote:You could take a look at Primary Health Properties. Their share price does not do much but they are steady and yield around 4.6%

Sell a holding yielding over 5.00% and replace it with one offering 4.60%? One of us is on the wrong board and I do not believe it is me!


Ian