The Lemon Fool

We need some good news about RGL to offset its weak SP:

Property investor Regional Real Estate Investment Trust exchanged contracts on a portfolio of new assets on Friday.

Regional spent a total of £31.4m to acquire the 275,000 square foot of office space in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln.

The London-listed investment trust told shareholders the assets would provide a net income of approximately £2.81m per year, which equates to a net initial yield of 8.66%.

https://uk.webfg.com/news/small-caps-ne ... 46138.html

and same topic:
http://europe-re.com/regional-reit-acqu ... -12m/65544

and an older purchase (April this year):

Regional REIT completes £4.9m Portsmouth buy

By James Wallace - Tuesday, April 10, 2018 14:26
Regional REIT has acquired an office building at Port Solent, Portsmouth from Northwood Investors in a £4.9m deal.

http://www.costar.co.uk/en/assets/news/ ... mouth-buy/

It goes ex-Div on Thursday, so I suspect that's partly the reason for the jump today. Let's see the share price later in the week Fred.

I hold it too.

Today's overdue rise wholly due to the great Interim statement:

# 39% increase in net rental income
# 7.3% increase in NAV - well ahead of all expectations - see ADVFN B/b thread
# £60m disposals on 4.9% yld
# £40m acquisitions on 8.4% yld
# Scottish exposure considerably reduced
# LTV down from 45% to 41.2%
etcetcetc

Sp has been held down due to the CIC overhang; so had become anomalously good value.

Still remarkably cheap @ 98.5p on an 8.2% yield and historic 13.3% discount

Happily I bought some more last month.
Less happily I also bought more RDSB (down £1) and more Rio Tinto (down £2).
Wishing I'd put it all on RGL now but couldn't quite understand what was depressing the sp.
On those figures I may well still buy some more.
The other two should come back if Trump ever stops tweeting or gets impeached...

"...but couldn't quite understand what was depressing the sp."

In future you must follow the RGL thread on ADVFN:

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

SKYSHIP wrote:"...but couldn't quite understand what was depressing the sp."

In future you must follow the RGL thread on ADVFN:

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

I will indeed, hadn't seen that one. Thanks

There is some information on the dividends for the rest of the year:

The dividend is a major component of the total return. The Company declared total dividends of 3.70pps for the period to 30 June 2018, comprising of two quarterly dividends of 1.85pps each, up 2.8% on the previous year.

The Board is committed to paying a dividend of 8.05pps for the full year 2018.

https://uk.webfg.com/equity/Regional_REIT_Limited

So after the 3 at 1.85p, the final should be 2.50p.

Thnx to CWA1 on the ADVFB B/b for posting this:

Edison TV Interview:-

https://www.edisoninvestmentresearch.co ... onal-reit2

Forgot to post the excellent Presentation of the excellent Interims:

Interims Presentation:-

http://www.regionalreit.com/~/media/Fil ... n-2018.pdf

Pleased to see that RGL continues to base build and move higher in increasing volume – always a good sign. Does look as though the 100p, then 105p, targets are there to be met…and we all enjoy the 8% yield as it does so.

I expect a post-Interims EDISON Update any day now:

Chart can be seen on ADVFN's RGL thread:

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

sorry - double post!

I was replaying that Edison TV interview a few days ago (see link in 20th Sept post above) so as to write down the best stat not usually covered; and I believe not mentioned before on this thread:

# RGL's office valuations are based upon £130/sq.ft VERSUS a replacement cost averaging £200/sq.ft

# RGL's industrial valuations are based upon £42.75/sq.ft VERSUS a replacement cost averaging £85/sq.ft

This explains the lack of development in these sectors in the regions. The existing properties are too lowly valued by the open market. So with very little new stock being built, rents for existing properties might be expected to remain keen; and therefore valuations continue to rise.

The stats are pretty incontrovertible, but it is the degree of the difference which certainly surprises me!

Thanked!

Those figures for replacement cost seem not unreasonable. Your comment about the lowly market value being applied in my eyes only applies to the listed world. If you go to the Allsop or Acuitus commercial auction this week the prices made will confirm how cheap RGL is. Maybe liquidating the portfolio and handing back the uplift is where they should be headed. There again where else can you get an 8% income return with some certainty about the payment.

Have you looked at RDI?

flyer - RDI - yes, but personally not enamoured by that chunky £162m London serviced offices acquisition back in January.

Still, they had a very nice Spring bounce from 32p to 38p and I missed that one - so who knows 32p may provide support again...

If there is a Brexit deal then a material bounce for the REIT sector is probably on the cards. I don't see to much downside from here....he says in hope!

Flyer - Incidentally, you mentioned the auction market. Were you referring to, for instance, Allsop's auction today?

Those auction sales tend to be for the tertiary market rather than the secondary institutional market.

Or were there other larger commercial sales elsewhere?

Agreed it is Tertiary. Lot size can run to the mid single digits millons nowadays.

Trading Update & Divi announcement coming soon - Friday 16th Nov.

XD the 1.85p divi today. Sp holding up well at 99p.

Cenkos report apparently out last Friday. Predicting a 2019 NAV of 124p & an 8.25p divi.

Damned MiFiD2 regs prevent me from receiving a copy....why that should improve transparency is beyond everyone -
typical EU babble which produces unwarranted outcomes.

One of the few shares of mine that aren't dropping like a stone. Might add more if I can spare the cash.