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Regional REIT.

FredBloggs
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Re: Regional REIT.

#109776

Postby FredBloggs » January 12th, 2018, 10:07 am

SKYSHIP wrote:Investors Chronicle have updated their opinion:-

With relatively low rents, Regional REIT’s portfolio offers significant reversionary value that will be crystallised over time as leases come up for renewal. The other attraction is the dividend, which yields over 7 per cent, and is fully covered by after-tax earnings. Trading at a discount to forecast net asset value, the shares are a must for income seekers. At 103p, buy.

They copied my thesis LOL!

richfool
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Re: Regional REIT.

#109823

Postby richfool » January 12th, 2018, 11:52 am

Thanks for that update Skyship. I did take advantage of the offer of additional shares at 101p. The dividend is certainly very healthy!

My holding of WHR is actually doing better (in terms of the SP) than my holding of RGL.

Retiringat51
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Re: Regional REIT.

#110005

Postby Retiringat51 » January 12th, 2018, 9:05 pm

All makes good sense, folks.

The market doesn't appear to have awoken to the merits of the argument, however. By this I mean that the SP remains rangebound and has been for quite some time now, in spite of the good news story.

Any thoughts on why?

FredBloggs
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Re: Regional REIT.

#110032

Postby FredBloggs » January 12th, 2018, 11:38 pm

Retiringat51 wrote:All makes good sense, folks.

The market doesn't appear to have awoken to the merits of the argument, however. By this I mean that the SP remains rangebound and has been for quite some time now, in spite of the good news story.

Any thoughts on why?

I'm sticking to my original thesis. It is deeply unfashionable. It suits me just fine, that's my life story in four words.

FredBloggs
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Re: Regional REIT.

#110872

Postby FredBloggs » January 16th, 2018, 8:28 am

Have to own up to topping up with RGL this morning. Too much cash sitting earning nothing. RGL seems like a bargain on that basis, though I am now a little overweight, I feel.

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Re: Regional REIT.

#111063

Postby SKYSHIP » January 16th, 2018, 5:40 pm


UncleEbenezer
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Re: Regional REIT.

#111120

Postby UncleEbenezer » January 16th, 2018, 10:51 pm

House of Fraser was on the news recently re: seeking to re-negotiate its rents (downwards).

Could this be a straw in the wind about retailers and hard times, that might feed through to their landlords having to revise projections?

FredBloggs
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Re: Regional REIT.

#111127

Postby FredBloggs » January 16th, 2018, 11:18 pm

UncleEbenezer wrote:House of Fraser was on the news recently re: seeking to re-negotiate its rents (downwards).

Could this be a straw in the wind about retailers and hard times, that might feed through to their landlords having to revise projections?

Perhaps. Though from memory, RGL has low exposure to retail.

SKYSHIP
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Re: Regional REIT.

#118792

Postby SKYSHIP » February 17th, 2018, 1:52 pm

Thnx to whitestone for posting this over on ADVFN:
============================================

The Daily Telegraph gave this a mention yesterday....

http://www.telegraph.co.uk/investing/sh ... tocks-buy/

"Update: Regional Reit

Quoted property trust Regional provides the portfolio’s exposure to commercial property in the South East but, crucially, outside the M25.

At the end of 2017 the company secured a £165m refinancing package (at a highly competitive fixed rate) that extended the term of average debt across the group. The deal gives Regional the flexibility it needs to continue its aggressive acquisition strategy.

One of the portfolio’s oldest holdings, we bought it at 103p in October 2016. The price has been either flat or slightly down in the months since but it is the income we’re interested in and Regional has not disappointed. It has paid out £1,085 on our £15,000 investment.

At today’s price the yield is 7.7pc. It is one of the few high-yielding trusts in its sector trading at a discount (3pc) to the value of its assets. Buy"

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Re: Regional REIT.

#118858

Postby Dod101 » February 17th, 2018, 9:42 pm

As a regional REIT (as in out of London) I prefer Mucklow which is on a much lower yield of around 4.5% and where the family owns about 20% and with low borrowings. That and Primary Health Properties are I think about the most conservative around. In fact I think I will bail out of British Land and reinvest in Mucklow.

I would not be comfortable with Regional REIT with its high yield. It all looks too easy but maybe it is just because they are in secondary areas which are up and coming and not well known to the bigger property developers.

Dod

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Re: Regional REIT.

#118903

Postby SKYSHIP » February 18th, 2018, 11:51 am

dod - Even with interest rates on an upward curve, no-one is suggesting rates moving back above 3%. UK inflation peaked @ 3.1% and is now trending
lower. So propcos are fixing long-term debt @ 3% and letting at 8%.

Outside the SE, in the regions where the economy is growing at a faster rate, many quality assets, with quality tenants and long leases STILL provide yields of 8%+.

Hence a company like RGL can provide a covered yield of 7.5%+; that yield should not be viewed as indicating higher risk.

Personally not a fan of MKLW as an investment prospect. Clearly it has been a great long-term investment; but has traded sideways for the past 4yrs as the stock suffered from over-valuation and an excessive premium to NAV. That premium now effectively liquidated; but no great reason for another premium to again build up...

Dod101
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Re: Regional REIT.

#118907

Postby Dod101 » February 18th, 2018, 12:03 pm

I do not di
SKYSHIP wrote:dod - Even with interest rates on an upward curve, no-one is suggesting rates moving back above 3%. UK inflation peaked @ 3.1% and is now trending
lower. So propcos are fixing long-term debt @ 3% and letting at 8%.

Personally not a fan of MKLW as an investment prospect. Clearly it has been a great long-term investment; but has traded sideways for the past 4yrs as the stock suffered from over-valuation and an excessive premium to NAV. That premium now effectively liquidated; but no great reason for another premium to again build up...


I do not disagree with the arguments put forward but the question is for how long this anomaly (because that is what I see it as) will continue. For instance that sort of property yield is almost certainly to attract other developers and bring it down over time. Not saying it is not an attractive proposition in t6he meantime.

Mucklow is just the sort of company that I like. Big family holding, conservatively managed and with a good sustainable yield. The dividend has increased comfortably for many years. REITS as such should be mainly income plays and that is certainly how I view them and just the way Fred seems to as well. I suspect that now is a good time to get in to Mucklow for the long term.

Dod


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