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Regional REIT.

Alaric
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Re: Regional REIT.

#313739

Postby Alaric » May 30th, 2020, 5:44 pm

dealtn wrote:
Can those still living with parents, or in House of Multiple Occupants, even married couples work in a shared way?


A possibly logical development could be that redundant "large" offices in or adjacent to residential areas are given a new role as "rent a desk". That probably doesn't save much for employers, but does save employee travel costs and time.

baldchap
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Re: Regional REIT.

#313769

Postby baldchap » May 30th, 2020, 7:31 pm

Lots of interesting viewpoints from both sides
One thing that strikes me, is that those commenting on the benefits of working from home (as I would love to), are probably professionals or middle management level and above.
Probably have a home office, more advanced in years, a bit of work ethic or skin in the game, and a family.

What about the lower level, usually younger worker? You could say that all call centre workers could work from home for example.
However, stories from the wife who worked in one about 15 years back, give the impression of a poorly paid and unmotivated workforce with a high level of absenteeism & 'sickness' that needed to be actively managed.

Time will tell.

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Re: Regional REIT.

#313773

Postby jonesa1 » May 30th, 2020, 7:38 pm

dealtn wrote:Can those still living with parents, or in House of Multiple Occupants, even married couples work in a shared way? What happens if they "need" to rent a room at the local library, or rent-an-office? Is that their cost or can that be passed on to the employer, and if so what stops others that don't need to do this from being given an "allowance".


I suspect the market will decide. If jobs are in short supply people will put up with more than they will if workers are in short supply. In theory removing EU free-movement will help the workers, but we already have a lot of non-EU nationals working in the UK and I've heard nothing that suggests their numbers will decrease. We're also probably going to have a recession which will further tilt the balance of power to employers. The impact of any government policy to redress the imbalance and the potential of legal action could be significant as well.

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Re: Regional REIT.

#314683

Postby ReallyVeryFoolish » June 3rd, 2020, 1:10 am

Very welcome to see RGL up by 7.5% on Tuesday. No evidence of news flow, just better sentiment towards RGL, I guess? RGL remains a fairly brightspot in a dire sector despite my part misgivings towards it recently.

RVF

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Re: Regional REIT.

#319282

Postby ReallyVeryFoolish » June 18th, 2020, 8:30 am

A fairly upbeat assessment of RGL here -

https://seekingalpha.com/article/435381 ... ffice-reit

RVF

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Re: Regional REIT.

#319331

Postby ReallyVeryFoolish » June 18th, 2020, 10:58 am

ReallyVeryFoolish wrote:A fairly upbeat assessment of RGL here -

https://seekingalpha.com/article/435381 ... ffice-reit

RVF

Must admit, my nervousness regarding RGL a couple of weeks ago is starting to fade. I haven't sold any RGL shares so I still have too many, but it's a solid company and if anyone can turn in a good performance in the sector, it's RGL. I may stop further reinvestment of RGL dividends into RGL shares and divert the income elsewhere. A lower yield than RGL, but not increasing the RGL portfolio position any further. Present candidate for investing RGL dividend payment going forward is another REIT. Impact Healthcare REIT.

RVF

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Re: Regional REIT.

#319604

Postby airbus330 » June 18th, 2020, 9:52 pm

Thanks for posting that piece on RGL. It's in my intensive care ward and I'd been looking for reasons why it hadn't really become less volatile apart from spill over from other parts of the sector. Keeping them for now.

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Re: Regional REIT.

#319692

Postby ReallyVeryFoolish » June 19th, 2020, 9:54 am

airbus330 wrote:Thanks for posting that piece on RGL. It's in my intensive care ward and I'd been looking for reasons why it hadn't really become less volatile apart from spill over from other parts of the sector. Keeping them for now.

Yes, I think it's sector contagion rather than a findamental issue at RGL. My discomfort at holding too much RGL is subsiding by the day. A nice divi soon. I think I am putting that into Impact REIT along with a few shillings from elsewhere.

RVF
Moderator Message:
Discussion of REITs into care homes continues here. - Chris

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Re: Regional REIT.

#323643

Postby ReallyVeryFoolish » July 4th, 2020, 2:06 am

Good update on new rentals from RGL. My confidence is growing with RGL -

https://quoteddata.com/2020/07/regional ... -renewals/

RVF

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Re: Regional REIT.

#323666

Postby Spet0789 » July 4th, 2020, 10:01 am

My wife added some RGL at the start of the week. Now our largest single-stock position.

I too feel good about the future for this holding. It’s too cheap. Given employers will need to give staff in the office more room, I think that the effect of more home working is much overstated. Furthermore, much of RGL’s stock is town/city centre offices which can be converted to residential if needs be. The discount to NAV is too big.

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Re: Regional REIT.

#323670

Postby Dod101 » July 4th, 2020, 10:24 am

baldchap wrote:Lots of interesting viewpoints from both sides
One thing that strikes me, is that those commenting on the benefits of working from home (as I would love to), are probably professionals or middle management level and above.
Probably have a home office, more advanced in years, a bit of work ethic or skin in the game, and a family.

What about the lower level, usually younger worker? You could say that all call centre workers could work from home for example.
However, stories from the wife who worked in one about 15 years back, give the impression of a poorly paid and unmotivated workforce with a high level of absenteeism & 'sickness' that needed to be actively managed.

Time will tell.


I am jumping into this which is not usually a good idea but my daughter, her husband and now granddaughter are all working from home and it seems to work well if a bit cramped. My daughter is a trainer in a call centre and granddaughter is about to be a bod in the same call centre and plans to work from her Uni flat in the coming months. My daughter reckons that the call centre office has been empty and virtually unmanned since the end of March and she doubts that it will ever be fully manned again. They are able to give 24/7 cover to incoming public calls working from home and training courses can be done online via Zoom. Amazing what can be done. How long do you really think that an employer is going to leave a whole office building empty? The future for REITS seems to me to be with the SEGRO model, very large sheds to cater for e commerce.

Presumably there will still be a need for office buildings. For instance said son in law is likely to be working one week at home, the other in the office and that way the employer can maintain the current premises and accommodate social distancing, but if social distancing can be removed it is likely that some form of home working will continue and much less office space could be required.

I do not know how this would impact on Regional REIT though.

Dod

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Re: Regional REIT.

#323707

Postby ReallyVeryFoolish » July 4th, 2020, 12:58 pm

Dod101, I see exactly where you are coming from with this. I have been worried too about my overweight holding in RGL (15% of total portfolio value). I am getting a bit more relaxed as time passes this last few months. The news from RGL has to date been rather encouraging. Including what I posted earlier about some new rentals. As this was a sector I knew very little at all about, before investing, so I did far more due diligence than I usually do. I became convinced that the management of the portfolio and the strategies underpinning the way the business is run are very good indeed. In Dod terms, it smelled good. I was rewarded by terrific dividends every quarter and a share price appreciation of around 20% on top. Then the wheels came off the world markets.

The company hasn't changed, the management hasn't changed. The business environment has changed. I got rather nervous a few weeks back. But looking at the situation now, I still believe in the management. If there's a property portfolio management team out there who can get through the current situation, it's RGL. The present share price is a victim of the awful and justified sector wide sentiment. But RGL is not your typical property company. Far from it. Presently, I continue to do nothing but hold on.

RVF.

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Re: Regional REIT.

#324506

Postby jonesa1 » July 8th, 2020, 7:47 am


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Re: Regional REIT.

#324523

Postby Shelford » July 8th, 2020, 9:11 am

ReallyVeryFoolish wrote:Dod101, I see exactly where you are coming from with this. I have been worried too about my overweight holding in RGL (15% of total portfolio value). I am getting a bit more relaxed as time passes this last few months. The news from RGL has to date been rather encouraging. Including what I posted earlier about some new rentals. As this was a sector I knew very little at all about, before investing, so I did far more due diligence than I usually do. I became convinced that the management of the portfolio and the strategies underpinning the way the business is run are very good indeed. In Dod terms, it smelled good. I was rewarded by terrific dividends every quarter and a share price appreciation of around 20% on top. Then the wheels came off the world markets.

The company hasn't changed, the management hasn't changed. The business environment has changed. I got rather nervous a few weeks back. But looking at the situation now, I still believe in the management. If there's a property portfolio management team out there who can get through the current situation, it's RGL. The present share price is a victim of the awful and justified sector wide sentiment. But RGL is not your typical property company. Far from it. Presently, I continue to do nothing but hold on.

RVF.


Hi RVF

Yes, RGL is a core holding for me. However I'd never risk 15% of my shareholding on anything. Not the place for a discussion of portfolio holdings, but I'd strongly recommend rebalancing. Shelford

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Re: Regional REIT.

#324526

Postby ReallyVeryFoolish » July 8th, 2020, 9:22 am

Shelford wrote:
ReallyVeryFoolish wrote:Dod101, I see exactly where you are coming from with this. I have been worried too about my overweight holding in RGL (15% of total portfolio value). I am getting a bit more relaxed as time passes this last few months. The news from RGL has to date been rather encouraging. Including what I posted earlier about some new rentals. As this was a sector I knew very little at all about, before investing, so I did far more due diligence than I usually do. I became convinced that the management of the portfolio and the strategies underpinning the way the business is run are very good indeed. In Dod terms, it smelled good. I was rewarded by terrific dividends every quarter and a share price appreciation of around 20% on top. Then the wheels came off the world markets.

The company hasn't changed, the management hasn't changed. The business environment has changed. I got rather nervous a few weeks back. But looking at the situation now, I still believe in the management. If there's a property portfolio management team out there who can get through the current situation, it's RGL. The present share price is a victim of the awful and justified sector wide sentiment. But RGL is not your typical property company. Far from it. Presently, I continue to do nothing but hold on.

RVF.


Hi RVF

Yes, RGL is a core holding for me. However I'd never risk 15% of my shareholding on anything. Not the place for a discussion of portfolio holdings, but I'd strongly recommend rebalancing. Shelford

You're right, not the place for portfolio discussion. But for me, rebalancing my holdings usually has bad results. Most recently by partly selling out of really well behaving growth investments and reinvesting in what I thought were high quality income investments. The results of which have been a disaster financially with as much as 50% capital loss on top dividend cancellations. The problem is, therefore, what to buy if I sell some RGL that doesn't have a far worse outcome than staying fully in RGL? Nobody can answer, of course. But I am not rushing out of the frying pan into the fire again anytime soon.

RVF

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Re: Regional REIT.

#336500

Postby ReallyVeryFoolish » August 28th, 2020, 8:12 am

And, a 21% cut in RGL dividend announced on Wednesday, I missed that but it doesn't chime too well when previous announcements regarding rent collection have all been positive. Perhaps the management are, rightly I suppose, being prudent in unprecedented times for the RGL portfolio. Nonetheless, a disappointment.

RVF

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Re: Regional REIT.

#345562

Postby MDW1954 » October 6th, 2020, 10:30 am

Rent receipts at almost 100%; decent profits earned on disposals, attractive lease renewals coming through. OK, the dividend situation is a little disappointing, but I can see where they're coming from.

From an income perspective, RGL seems to tick a lot of boxes. Yet the share price indicates that the market is nervous.

Curious.

MDW1954

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Re: Regional REIT.

#345635

Postby SKYSHIP » October 6th, 2020, 1:59 pm

Below is an extract from my spreadsheet on 16 secondary propcos.

# Extracted to show those on 40%+ discounts

# AIRE & RGL included because of the great yields

# All NAV stats are to Jun'20, exc. MCKS still to Mar'20

EPIC SP....NAV...Disc...Divi..Yield
---------------------------------------------
AIRE 51.00 83.60. 39.00 5.00 9.80
BCPT 67.20 120.70 44.30 3.00 4.46
BREI 52.00 96.60. 46.20 2.50 4.81
EPIC 49.50 90.24. 45.10 4.00 8.08
MCKS 190.00 329.00 42.20 7.20 3.79
RGL 66.00 102.60. 35.70 6.00 9.09
SLI 46.80 79.60.. 41.20 2.86 6.10
SREI 32.85 57.70. 43.10 1.54 4.70

"You pays your money you takes your choice"....but sure looks to be
some great value out there, especially those showing good rent collections.

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Re: Regional REIT.

#345676

Postby spiderbill » October 6th, 2020, 4:03 pm

MDW1954 wrote:From an income perspective, RGL seems to tick a lot of boxes. Yet the share price indicates that the market is nervous.


Yes it's hard to see why they've been marked down so much. Perhaps been tarred with the wrong brush as regards those exposed to offices at greater risk of being emptied. My average buying price is just over 101p and I was happy with that pre-covid. Only reason I haven't topped up is that with others missing dividends they make up about 7% of my share-based income, but that's an artificial figure. I think I feel a wee purchase coming up.

Spiderbill

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Re: Regional REIT.

#345677

Postby ReallyVeryFoolish » October 6th, 2020, 4:09 pm

I think it's just malaise towards the entire REIT sector. If I didn't have too much RGL already, I would be buying here for certain. The company is very well run and I am fully confident that if anyone can make a property portfolio work in the present environment, it's RGL. I just look forward to a rerating of the shares. 80p should be very doable, I think.

RVF


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