The Lemon Fool

Hi Fred,
I don't know much about Regional REIT. I note the high yield and the discount. Most Property IT's are at significant premia so I don't know why the discount.

I have held SLI (Standard Life Property Income) for a number of years.

Sector:
http://citywire.co.uk/money/investment- ... ePeriod=12
Regional REIT:
http://citywire.co.uk/money/investment- ... undID=3927
SLI:
http://citywire.co.uk/money/investment- ... undID=3220
HL on REIT:
http://www.hl.co.uk/shares/shares-searc ... it-ltd-npv

I daresay it could also be on the HYP Board Practical. That is where the likes of B Land and other REITS are discussed. No matter. I wish you well Fred and you may do well from it but it would be too small for me and too recently established. The 7.2% yield is for a reason and apart from people not knowing about it it could be perceived as a higher risk than say B Land or some of the other big players.

In property I hold B Land and Primary Health Properties, both of which are REITS and Daejan which is not. All I think much lower risk but all cash cows in the sense that their dividends increase modestly year on year. For newbies this is the sort of siren call that can lead to problems.

Dod

Well if I remember the Investors Chronicle have tipped it and John Baron has it in his income IT portfolio.

I am overweight on property (British Land, FCPT, Hansteen & New River Retail) and I was a little nervous about the yield so I passed. Might be worth a small punt for other income investors.

Matt

I guess that the small discount reflects the markets view on the relatively high LTV, last reported at 47%, lack of clarity on future funding arrangements and the obligation bearing down on them to repay the Conygar ZDPs in a little over a years time. No doubt these issues will be sequentially resolved, but in the mean time you are being paid to take on some additional risk.

Fred, I would be interested to see your source article (Questor). I've had a quick search around and came across this one, though note its from Oct 2016. (I thought I would post the link as it also mentions NG which I am aware you like.

http://www.telegraph.co.uk/investing/sh ... portfolio/

this was tipped by jonas crossland and john baron - both in IC.

neil woodford has this in one of his funds .

directors were buying in march .

i hold some .

mattman74 wrote:Well if I remember the Investors Chronicle have tipped it and John Baron has it in his income IT portfolio.

I am overweight on property (British Land, FCPT, Hansteen & New River Retail) and I was a little nervous about the yield so I passed. Might be worth a small punt for other income investors.

Matt

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i'm also holding BLAND , hansteen and new river retail --- as does woodford .

so i hope he's is right on all these !

Looks similar to this IPO closing date 6th November:-

https://www.youinvest.co.uk/markets/ipo/m7-reit

M7 currently manages over 995 industrial, office and retail properties valued at approximately €4.6 billion on behalf of real estate investors such as Blackstone, Oaktree, HIG Capital and Starwood Capital.

I hold Redefine International as well as Regional and this has a slightly higher yield.

FredBloggs wrote:Regional REIT is around 7% of my portfolio

Here's another recent article on Regional REIT, from the Investor's Chronicle, which may be of interest:

https://www.investorschronicle.co.uk/ti ... -a-refurb/

FredBloggs wrote:Regional REIT is around 7% of my portfolio

Just spotted this on the HL page. (First item under the Company News tab).

Regional Real Estate Investment Trust offloads Leeds site to Unite Students

(ShareCast News) - British property firm Regional Real Estate Investment Trust exchanged contracts on Friday that would see it sell off one of its Leeds development sites to Unite Students for £10.5m.
The two storey, 21,000 square foot site, laid out for leisure accommodation at the time of the contract's exchange, was acquired by Regional in March 2016 as part of the Wing Portfolio, along with the adjacent 19 floor Arena Point office tower which the firm was continuing to invest in the refurbishment of.

http://www.hl.co.uk/shares/shares-searc ... it-ltd-npv

FredBloggs wrote:Thamks, and a GBP 9 million profit on a GBP 10.5 million sale is not so shabby. Very nice deal.

Note it goes ex div on 23 November, to be paid on 22 December.

Well, I bought a few today Fred, - to increase my diversification and dividend income at the same time!!

Opened a small position with some of my Hansteen tender cash (sold half). Will be interesting to compare their performance.

Hopefully I'll be thanking you for the tip inthe future rather than cursing you

The high yield and lack of a premium, does tend to suggest to me a higher level of risk. Certainly by L'Universal's standards it would be into one of his riskier "zones", ... if not maybe mezzanine, perhaps penthouse.

I have kept my investment to a modest amount.

I hadn't jumped in to give an early response on this, as I too am interested in the views of others.

From my perspective I like to hold round figure amounts and I had already bought the size of holding that I wanted. Therefore I am reluctant to top up via this offer which would then leave me with an odd number of shares.

The second point is that the offer is at a SP of 101p, and I noted yesterday and first thing this morning that the current market SP was close to that figure c 101.25 - 101.50p, though this afternoon it has moved up to 102.50p.

Thus overall I am not strongly inclined to avail myself of the offer.

Any other views would be appreciated.

With a yield of almost 7.5% it's attractive for income seekers, which leads me to my question; as the yield is so much higher than an equity income IT (or OEIC or most individual shares), why does anyone buy these other investments over REITs?

Is it that equities offer capital growth too (if it's in the ITs mandate) but a REIT just locks you in to that level of income long-term without any consideration of future capital value?

I'm a novice with REITs as you can tell!

Brummie/Dave,

I have a modest holding in Regional Reit.

However, be warned of my own personal experience with commercial property.

Around 2004/05, I invested a substantial sum in a pooled investment run by alleged experienced property specialists, with the money invested in a portfolio of secondary, ie non prime, commercial properties in industrial estates in non prime locations producing yields of 9-10%.

The portfolio was geared and used bank borrowings.

Come the credit crunch, some tenants ran into difficulties, valuations of the properties were significantly hit, the banks became nervous over loan to value ratios and within a couple of years of the credit crunch I had lost the lot, a very significant sum!!!!!

So it can go wrong with inappropriate gearing, reduction in valuations and tenants running into arrears.

The larger the amounts being paid out on a yearly basis, the smaller the margin for error should you know what hit the fan in times of stress.

So do not put too much in any single investment and the high yield will come with higher risk.

Thanks, and I'm just learning. I won't be buying until I understand a lot more.