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To provide ordinary shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.
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I had wondered why the share price had been rising steadily over the past few weeks and now we know. As predicted on 08/11/23, the Picton debacle put the 'for sale' sign up over UKCM. Interesting merger. It gives BBOX meaningful bulk in terms of index funds needing to buy it. It allows an amount of diversification hence safety when Amazon can change the whole space at a whim. Also in an environment of falling inflation / interest rates, BBOX should be able to sell the bits it doesn't want at a profit over the next couple of years. Maybe they've already been speaking to Picton???
In summary, a good deal for BBOX. I wish UKCM could've got a bit more, but that's life.
No, it doesn't really do much at all apart from rail road UKCM investors in to having the assets managed by Picton. There may be costs savings from scale, and the fact that Picton is internally managed, but other than this I consider this an unwanted distraction. As an investor I want to see ABRDN concentrate on managing the portfolio and realise the reversionary yield available within the properties, thus increasing the dividends available to shareholders.
I want Picton to b*gger offer, frankly.
Is the 'possible merger' with Picton just a way of telling the market that we're available for the right price to any interested buyer because the 'merger' sounds to me more like a no premium takeover which would not be best value for shareholders imho ? Looking forward to seeing more meat on the bones.
Up she goes, as expected.
Fully agree...even if some may have to reduce payouts, it’s a long term position worth feeding into at the discounts seen today. Good luck with your decisions. :=))
Woooooo Hooooooo. It's raining bargains!! Fill your boots is all I can say, and lock in income yields that will make a difference to your life in the longer term. A true bargain hunter's paradise.
Had this, sold and now eyeing up a re entry below 50p
Renewables and infra/debt are going down, so plenty of opps to ponder.
Some ridiculous yields on offer across the board..
In the Real estate market RGL is a whopper.
Becoming a buyers market for high yields.
Slowly DCAing, should be great in the long term
Can't believe the price remains depressed. This is a lowly geared REIT with quality properties, most of which won't fall foul of the EPC legislative changes. Recent lease negotiations have provided evidence that the underlying reversionary yield is higher than the current level. So investing here will mean you can buy in to a growing dividend, starting at circa 6%. What is it I am missing here?
Indeed - small top up today at 51.3.
Many congratulations, DenFos. I believe this is a very good opportunity for you, and I'll be honest in saying I am a little jealous. All the best with your investment.
Been waiting a long time to buy these at under 50p - finally!
Yes, the price is still holding up. I bought some today at 54.8p. The price seems to be reasonable stable at about 55p, which gives a return of over 6%.
Good stuff. I will keep topping-up, too. I love it when markets are irrational. In the long term it (usually) pays off. I note that the manager believes reversionary rental income has the potential to increase by circa 30%, so the prospective yield is meaningfully higher than the curent yield of 6%.
JGF,
Agreed. Solid income and low gearing. Also, directors purchases a few days ago at a higher price than this even taking into account today's xd.
Yep, just had a top up too.
You are right - in the long term, this will represent a good, sound investment, providing a return, at the current share price, of about 6%. I bought some today at 55p.They seem to have over reacted to the share going “ex div” today.
Thanks for your comments, JGFFourie. Happy with 57.5p, and happy for those who are getting them for less. It's a good opportunity to buy quality real estate with low levels of gearing.
More of a bargain, of course, if you had waited until now, when you could have paid 56p.
Bought in at 57.5p and as far as I am concerned this is bargain of the century. I always invest in REITS via an ISA. The providers I use request dividends to be paid gross, with no withholding tax deducted. Any ISA provider who fails to request dividends be paid gross should not be in business.
If you hold shares outside of an ISA expect your dividends to be paid net of 20% withholding tax. Moral of the story - use an ISA for your REIT investments where possible.
Info below on PID's and taxation:
https://monevator.com/how-property-income-distributions-pids-are-taxed/
Cheers.
Had my eye on this one for a while and is approaching my buy in price, however just seen comments above about dividends are paid net.
I'll be usijg my isa for this as dividend allowance already used up, Im registered for self assessment so is there an option on there to reclaim tax for this (assuming it really is paid net of tax)
Worthy of a buy last week and now...
Well I never stayed long enough to get any. The SP is almost back to my original purchase price.
Most likely due to the Ukraine situation sinking all boats. I suppose it could get worse before it gets better but if its a temporary setback could be worth a rebuy
"I thought it was paid gross anyway"
Hi Gerry, the dividends I have received over the last year have all been paid net, not gross.
I sold these yesterday morning.
The reasons were the dividend level, despite the bump its still quite a low yield and the history does not suggest that there will be many increases. I think that was part of the reason for not investing previously anyway. It also hit my initial reasons for buying. The discount closed the NAV increased. This offered me just shy of 13% profit so effectively a few years dividend ahead of schedule.
There was also another couple of things that tickled my spider senses. No link to the results webcast. They made it quite difficult to access this by giving a general company name in the RNS. So I was late to the meeting. There were not many questions asked and whilst typing my own they said their goodbyes so I didnt get chance. Not great comms with shareholders. Even the website doesnt give you access to the latest information several days later. Id expect it to be put on the website at 7am that morning.
I will contact them about some of these issues just incase I want to reinvest. The funds have been funnelled into SREI instead. Hoping they follow the initial reasons why I invested here.