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RDI REIT?

SalvorHardin
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Re: RDI REIT?

#113621

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)

http://www.rdireit.com/investors/results-centre.aspx

Alaric
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Re: RDI REIT?

#113636

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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Re: RDI REIT?

#113638

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".

http://www.hl.co.uk/shares/shares-searc ... 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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Re: RDI REIT?

#113859

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.

* http://www.rdireit.com/investors.aspx

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Re: RDI REIT?

#162028

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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Re: RDI REIT?

#253073

Postby flyer61 » September 21st, 2019, 6:24 pm

Share price down 10 percent yesterday.....what's up?

PrefInvestor
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Re: RDI REIT?

#253084

Postby PrefInvestor » September 21st, 2019, 10:43 pm

Hi All, Well REITs used to be a favourite investment of mine back when I had my preference share portfolio I had about 20% in other high yield stuff. I held AEWU, ESP, RGL, FCRE, WHR and NRR at various points in time. But I dumped them all towards the end of 2018 when it seemed to me that brexit was likely to have a significant detrimental effect on commercial property valuations and hence be damaging to REITs. I continue to believe that in particular a no deal brexit could be very negative for REITs (and UK focussed banks and housebuilders).

RDI is a new one for me but I had a read of their 2018 annual report for interest sake. Was struck by them saying that the NAV was 42.x pence. Most REITs trade at NAV at best and mostly slightly below NAV in my experience. The really big REITs (INTU, HMSO & BLND) trade at a significant discount to the NAV some as low as one quarter others a half. Even NRR is currently trading at about 0.7 of NAV right now. So for RDI to be trading at 100+ with a NAV of ~42p doesn’t sound terribly sustainable to me, being so significantly out of sync with other companies in the same sector. The ~13% dividend yield (according to HL) is a further warning sign as far as I am concerned. 5 year chart looks horrendous, share price fallen continuously from ~280p to 108p on Friday, ouch !.

Could well be another REIT that turns your capital into income….at the very best ?.

All just my personal opinion, could be wrong as always.....NRR is doing well.

ATB

Pref

PrefInvestor
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Re: RDI REIT?

#253100

Postby PrefInvestor » September 22nd, 2019, 8:49 am

Hi Again All, Have since looked at some other charts and chat sites and it would seem that the stock has had a lot of stock splits over the years which wasn’t apparent from the chart I was looking at yesterday. Confess I couldn’t understand why people were taking about buying at 35p when according to the chart I was looking at the price hadn’t been remotely close to that level. Also seen on ADVFN that posters there were talking about a NAV of 190p, which makes more sense to me than 42p - but that’s what I saw in the 2018 results. But again if there have been stock splits then that number will have changed....

So sorry, looks like the data that I was looking at was likely out of date......so my previous comments in respect of NAV are likely invalid. Would still be concerned at the very high yield though.

ATB

Pref

SalvorHardin
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Re: RDI REIT?

#253111

Postby SalvorHardin » September 22nd, 2019, 9:54 am

PrefInvestor wrote:
Again All, Have since looked at some other charts and chat sites and it would seem that the stock has had a lot of stock splits over the years which wasn’t apparent from the chart I was looking at yesterday. Confess I couldn’t understand why people were taking about buying at 35p when according to the chart I was looking at the price hadn’t been remotely close to that level. Also seen on ADVFN that posters there were talking about a NAV of 190p, which makes more sense to me than 42p - but that’s what I saw in the 2018 results. But again if there have been stock splits then that number will have changed....

So sorry, looks like the data that I was looking at was likely out of date......so my previous comments in respect of NAV are likely invalid. Would still be concerned at the very high yield though.

The shares had a 5 to 1 consolidation in February 2019

https://www.investegate.co.uk/rdi-reit- ... 00055614P/

Way too risky for me. The massive yield is a big warning sign

PrefInvestor
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Re: RDI REIT?

#253119

Postby PrefInvestor » September 22nd, 2019, 11:00 am

Hi Salvor, Ah so previous posters buying at 35 were effectively paying 175 ?. For a share that’s ~100p today...... NAV of 42 becomes 210 I guess which puts them on a par with the big REITs at ~50% of NAV.

Agreed the very high yield is a big flashing warning sign.

As I said I don’t like REITs too much ATM personally. RGL or WHR best of the bunch IMV probably. Jury still out on NRR though it has done very well lately. Just watching from the sidelines myself ATM.

ATB

Pref


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