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Regional REIT.

FredBloggs
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Re: Regional REIT.

#154125

Postby FredBloggs » July 22nd, 2018, 1:28 pm

gbjbaanb wrote:
FredBloggs wrote:The thing is that the REIT currently trades at a discount to NAV. The assets are mostly concrete and aren't going away any time soon. If RGL somehow went up in a puff of smoke, the concrete is still standing and the tenants are still paying rent. I don't correlate that as equity risk in the same way as, say, Carillion or Provident Financial. Like chalk and cheese. I see zero reason to buy the bonds, others have different views, obviously.


The concrete might be standing, but might also be falling apart. The tenants might all decide to up sticks and relocate their business to Poland, the economy could collapse after Brexit (as I'm told, incessantly, it will it we leave ;) ) or the building sector could boom and build loads more offices and warehouses reducing the rents if there aren't enough tenants to go round.

Plenty of risk for a REIT, particularly one holding office space that can become a ghost town almost overnight.

I hear what you are saying, it could happen. But I can't help feeling that under such Armageddon scenarios, I'd be much more worried about the price of canned baked beans, bottled water and ammunition than I would a REIT share price.

BrummieDave
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Re: Regional REIT.

#154434

Postby BrummieDave » July 23rd, 2018, 3:56 pm

Regional's share price and thus high yield are a reflection on its relatively small portfolio and thus company size, compounded by the relatively short leases on its properties as reflected by the WAULTs. It's a small REIT with short leases, and therefore riskier/more volatile than others.

colin
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Re: Regional REIT.

#154487

Postby colin » July 23rd, 2018, 6:02 pm

Yes I understood that the point about short leases is that companies who aren't too convinced that they will still need the premises ( for whatever reason) in a few years time sign short leases which heightens the risks of voids, in a down turn more of these companies are likely to cease trading yet that high debt interest will still need to be paid. Of course if the economy continues to improve as the Brexit situation evolves then there should be double digit total returns , but investors need to be able to hold through a downturn and accept a reduced yield.

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Re: Regional REIT.

#162523

Postby richfool » August 28th, 2018, 9:06 am

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/

FredBloggs
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Re: Regional REIT.

#165663

Postby FredBloggs » September 11th, 2018, 1:12 pm

Nice to see RGL perking up about 4% today. Long overdue, this is a solid cash cow investment. Profits doubled. More - http://www.morningstar.co.uk/uk/news/AN_1536664736379647500/regional-reit-increases-payout-as-disposals-drive-interim-profit.aspx

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Re: Regional REIT.

#165672

Postby BrummieDave » September 11th, 2018, 2:29 pm

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.

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Re: Regional REIT.

#165689

Postby SKYSHIP » September 11th, 2018, 4:01 pm

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

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Re: Regional REIT.

#165746

Postby spiderbill » September 11th, 2018, 8:05 pm

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...

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Re: Regional REIT.

#165749

Postby SKYSHIP » September 11th, 2018, 9:17 pm

"...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

FredBloggs
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Re: Regional REIT.

#165773

Postby FredBloggs » September 12th, 2018, 1:06 am

Remains deeply unfashionable, I see a narrowing of the absurd discount and a capital return medium term.

spiderbill
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Re: Regional REIT.

#165819

Postby spiderbill » September 12th, 2018, 10:15 am

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

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Re: Regional REIT.

#167198

Postby tramrider » September 18th, 2018, 1:27 pm

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.

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Re: Regional REIT.

#167622

Postby SKYSHIP » September 20th, 2018, 9:00 am

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

Edison TV Interview:-

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

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Re: Regional REIT.

#168404

Postby SKYSHIP » September 23rd, 2018, 5:16 pm

Forgot to post the excellent Presentation of the excellent Interims:

Interims Presentation:-

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

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Re: Regional REIT.

#171176

Postby SKYSHIP » October 3rd, 2018, 6:13 pm

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
Last edited by SKYSHIP on October 3rd, 2018, 6:17 pm, edited 1 time in total.

SKYSHIP
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Re: Regional REIT.

#171178

Postby SKYSHIP » October 3rd, 2018, 6:16 pm

sorry - double post!

SKYSHIP
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Re: Regional REIT.

#173621

Postby SKYSHIP » October 14th, 2018, 8:59 am

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!

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Re: Regional REIT.

#173656

Postby flyer61 » October 14th, 2018, 11:37 am

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?

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Re: Regional REIT.

#173712

Postby SKYSHIP » October 14th, 2018, 5:29 pm

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...

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Re: Regional REIT.

#173717

Postby flyer61 » October 14th, 2018, 5:52 pm

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!


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