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Postby SalvorHardin » January 27th, 2018, 9:43 am

£1.5 billion is the approximate valuation of all its properties.

Net asset value (for the shareholders, I've removed the minority interests) as of 31st August 2017 was £740.2 million (accounts page 22)

NAV per share then was 41.4p (current share price is 35.4p)

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Postby Alaric » January 27th, 2018, 10:44 am

FredBloggs wrote:Though I am not exactly sure why the dividends have reduced the last couple of years, I guess that could be repeated. Which would mean, not so much of a bargain after all.

The Report and Accounts says something about aligning dividends to cash flow. With the experience of Carillion, that is presumably a good thing. Those investors who flee at the sight of a dividend cut may have depressed the share price. There again the collective wisdom of the market appears sceptical about the ability of the Company to maintain and increase its dividend.

The borrowings may be a cause for concern. If they hit a downturn in rents received, servicing the debt is going to be a first charge and the dividend payout could be hit by a geared effect. Like junk bonds then, the yield is high because of the potential risk of a cut, possibly forced by events outside the company's control.

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Postby richfool » January 27th, 2018, 10:58 am

Fred, I know nothing of RDI.

Taking a quick look at the HL website, the most recent news item is about the disposal of a German retail property which reduced the REIT's leverage:

"RDI REIT completed the sale of its German retail property portfolio for €205m, which it will use to further reduce leverage and recycle proceeds into income-enhancing investments it has identified."

Their (HL's) brokers views consist of two. One says a "strong buy", the other "neutral". ... rdinary-8p

I take the view that a higher yield represents a higher risk.

I hold: SLI, RGL & WHR in that sector (and have no plans to increase my holdings).

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Postby Mainwaring » January 28th, 2018, 6:42 pm

One of mine, bought in late last year anD topped up at 35p last week, averaging down! I think the weakness has something to do with the rebasing of dividends, ongoing tight dividend cover, and large South African shareholder/Johannesburg listing creates a little confusion [dspp edit: in case anyone is confused, note this share is also dual listed on JSEX exchange]. It’s a little different to simple landlord/fixed lease model as many of the hotel leases here are operating. I don’t know, but for example, I don’t think the Holiday Express leases are with Intercontinental, rather the franchisees, Gearing at 45/50% is quite aggressive here IMO, lumpy refinancing by 2021(?). However, I like the recent deals they are doing and they are accretive to NAV. The OSOT JV reported recently looks a good one and adds diversification in a growin* segment. The directors filmed a Jan 18 Webinar update available on their website* and ahead of End Feb YE, ....I was quite pleased with what they are doing. A couple of modest PDMR purchases tend to highlight insider confidence but don’t be persuaded by just one factoid, these buys are massively dwarfed by free share incentives on mysterious performance criteria. Not compelling, but I was happy to put some in my High Yield bucket. DYOR.


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Postby flyer61 » August 25th, 2018, 12:41 pm

Just bumping this to the top as the IC have this week recommended RDI as a buy.

Do any Lemons have a fresh view on RDI?

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