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Regional or AEW top up

bobsmydog
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Regional or AEW top up

#128778

Postby bobsmydog » March 29th, 2018, 11:16 am

I hold both and am looking to top up on one on the recent price drops but can't decide which to go for, any thoughts, please? Currently:

AEW 1.45% discount to NAV, 9.74% yield
Regional 6.76% discount to NAV, 8% yield

AEW currently has higher occupancy rates - 8.4% vacancy, compared with 15% vacancy rate Regional

SKYSHIP
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Re: Regional or AEW top up

#128950

Postby SKYSHIP » March 30th, 2018, 8:17 am

No contest IMO - higher yield; higher NAV discount & higher voids provides more letting upside.

A very good tip / write-up in yesterday's IC. Won't post as it is a subscription site; but herewith the opening para & final summary para:

IC View:
========

As a rule of thumb, a yield of 7 per cent or more normally falls into the 'too-good-to-be-true' category. However, we think excessive Brexit angst rather than genuine trading difficulties mean the 8.4 per cent yield offered by shares in Regional REIT (RGL) could prove the real deal...................

Adjusted NAV at the end of December 2017 rose to £395.7m from £293.2m a year earlier, largely through funds raised via a share placing and a portfolio valuation uplift. The funds raised were to finance the Conygar portfolio, which helped to boost rental income from £43m a year earlier to £52.3m. Despite the prospect of further growth in rental income, shares in Regional REIT trade at a 15 per cent discount to forecast NAV. Add to this one of the highest dividend yields in the market, and the shares are a buy for income seekers. Buy.

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Re: Regional or AEW top up

#128961

Postby SKYSHIP » March 30th, 2018, 9:31 am

EDIT - No contest - RGL the better bet....

Incidentally the AEWU yield is 8.3%, not 9.7%. Also the RGL dividend is covered - not the case with AEWU.

bobsmydog
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Re: Regional or AEW top up

#128972

Postby bobsmydog » March 30th, 2018, 10:06 am

Many thanks, Skyship, for this.
I think I got my figures from trustnet, possibly not the most reliable source.
Interesting to hear that the discount to forecast NAV is 15% and dividends covered, very tempting indeed!

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Re: Regional or AEW top up

#129062

Postby SKYSHIP » March 30th, 2018, 5:42 pm

Further re RGL - A good article tipping them in yesterday's IC. A small extract can be seen in this link:

https://uk.advfn.com/cmn/fbb/thread.php3?id=34755838

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Re: Regional or AEW top up

#129063

Postby SKYSHIP » March 30th, 2018, 5:44 pm

EDIT - sorry, I see I'd already so advised! Doh!!

colin
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Re: Regional or AEW top up

#129912

Postby colin » April 4th, 2018, 10:53 am

Also the RGL dividend is covered - not the case with AEWU.


Skyship
i am puzzled as to where you get your information from, according to http://www.theaic.co.uk AEW rei'ts dividend is massively covered by nearly 8 years whereas RGLs dividend is covered by less than one years earnings?
Also RGL has a much higher loan to value than AEW.
Not saying your figures are wrong but somebody must have made a mistake.
https://www.theaic.co.uk/companydata/CD5XD

https://www.theaic.co.uk/companydata/CCDR6

mc2fool
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Re: Regional or AEW top up

#129917

Postby mc2fool » April 4th, 2018, 11:15 am

colin wrote:
Also the RGL dividend is covered - not the case with AEWU.

Skyship
i am puzzled as to where you get your information from, according to http://www.theaic.co.uk AEW rei'ts dividend is massively covered by nearly 8 years whereas RGLs dividend is covered by less than one years earnings?

That's a different definition of "cover" (as you'd see if you rolled over that heading on the AIC pages. ;))

The AIC's measure is nothing to do with earnings but is the number of years the revenue reserves could provide the current dividend, i.e. for how long they could continue to pay out at the current level even if their earnings dropped to zero. It's a standard measure for investment companies/trusts, although I agree it would be less prone to confusion if they called it something else...

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Re: Regional or AEW top up

#129938

Postby colin » April 4th, 2018, 12:49 pm

Ah! Well that clarifies the confusion (?) so when Skyship writes that RGLs dividend is covered and AEWs is not, in what sense is the word covered being used and where does one get that information?

bobsmydog
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Re: Regional or AEW top up

#130320

Postby bobsmydog » April 6th, 2018, 9:39 am

colin, I assume current yield is covered by current earnings

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Re: Regional or AEW top up

#130366

Postby colin » April 6th, 2018, 12:52 pm

Sorry but this is all a complete mystery to me,as you may be able to tell !

AEWU's annual report 2016 contains this chairman's statement 'We have developed our portfolio to provide an income stream to deliver our target of declaring fully covered dividends of 2p per share per quarter.

The 2017 annual report states that dividends of 2p per share were paid each quarter so 8p per share in all, the statement shows earnings per share in two forms, basic earnings of 5.04 p per share and EPRA earnings of 7.57. neither of which covers the dividend so what is the dividend being paid from? and which earnings figure is relevant to dividend cover?
And where do these massive reserves come from?

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Re: Regional or AEW top up

#130593

Postby richfool » April 7th, 2018, 5:31 pm

There is a short article in this weeks Investor's Chronicle about RGL., along with a buy recommendation.

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Re: Regional or AEW top up

#130681

Postby SKYSHIP » April 8th, 2018, 10:38 am

Colin

Seems as though you've got there. Using EPRA earnings the AEWU 8p dividend is nearly covered with an EPS of 7.57p, but not actually covered; whereas the RGL dividend IS covered with an EPS of 8.6p v. a dividend of 7.85p.

So in the case of RGL the dividend has further upside and is f/c to rise to 8.1p in the current year.

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Re: Regional or AEW top up

#130685

Postby SKYSHIP » April 8th, 2018, 10:47 am

EDISON Update post the RGL Finals.

In the current year the NAV is f/c to rise to 112p and the dividend to rise to 8.05p.

http://www.edisoninvestmentresearch.com ... 6/preview/

The IC article was a full-blown, practically full page TIP article - well worth reading for all existing
and prospective holders. 29th March - 5th April Issue.

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Re: Regional or AEW top up

#213107

Postby SKYSHIP » April 6th, 2019, 12:45 pm

We haven't had a post here for a long. long time. Well, I've decided to re-visit due to personal circumstances:

RGL has proved to be a great and secure investment. In my last post here I stated:

EDISON Update post the RGL Finals: In the current year (2018) the NAV is f/c to rise to 112p and the dividend to rise to 8.05p.

Well, in the event the NAV rose to 115.5p and that dividend of 8.05p was confirmed.

The shares have traded between 90p & 107p; with that absurd and profitable opportunity for a top-up (!) down to 90p in December when all the Market was tanking and some propcos overdid on the downside. I was lucky enough to shatter my self-imposed limit of a 10% MAX any one stock; and took on more at 90.5p for an 8.9% yield!

Anyway, since then we've all seen the RGL results. AEWU on the other hand have not recovered their December fall. They've see-sawed, but can again be bought at 90.5p for a 9.8% discount AND AN 8.8% YIELD.

Seems like an opportunity to grab with both wallets IMO...and I have done so...

BusyBumbleBee
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Re: Regional or AEW top up

#213415

Postby BusyBumbleBee » April 7th, 2019, 6:40 pm

Well done, Skyship - or should we call you TwoWallets now?

I bought both a tad too early :( but a happy :D holder of both

richfool
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Re: Regional or AEW top up

#213452

Postby richfool » April 7th, 2019, 10:36 pm

And I believe RGL's dividend is due on 11th April.

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Re: Regional or AEW top up

#213517

Postby BusyBumbleBee » April 8th, 2019, 9:38 am

richfool wrote:And I believe RGL's dividend is due on 11th April.
. It is indeed 2.5 pence - went ex div on 28th Feb : One of the few which 'spans' the two tax years. SQN is another one ex div 4th April pay 26th April.


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