Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Closed a decent holding in this at 97p that I held for years, so starting to look very tempting but fair comment REITS are a hard call at the moment
Got out of this and RGL at the top end but got back into GSF and it went south again
My finger hovered over the buy button today but I don't trust it not to drop further. Opted for BATS instead for size and yield.
Certainly is in the bargain basement. Dividend of 2p expected to be announced in a couple of weeks as well.
Yield is almost 10% on investing today. IMO the SP is lowering with the tide of the market.
Looks like it's in bargain territory right now. Someone is unhappy.
One of the better quality reits with limited office exposure. Has always paid a good dividend
Just looking at AEWU
From 28th Feb 2023 : NAV of £166.24 million or 104.93 pence per share as at 31 December 2022
SP was several % discount to NAV and then sold down to 92p by March 31st 2023.
From 25th Jan 2024 : NAV of £164.02 million or 103.53 pence per share as at 31 December 2023
Feb 2024, SP has already sold down to 90p so now at around the historical lower band of SP movements before CV19.
2p Dividend looks secure enough, so IMO this looks like a March buying opportunity especially if the SP dips into the mid 80s with sentiment likely lower due to the Portsmouth sale, Wilko and the cinema asset.
https://youtu.be/V-u1Tqmt6HU
Telegraph: Goldman Sachs has urged investors to stop betting against UK property stocks as the market shows signs of recovery.
Economists at the Wall Street bank are predicting a rebound in the real estate sector as interest rate pressures ease.
This marks a reversal as Goldman had previously warned clients against investing in commercial real estate companies as valuations plummeted.
Sharon Bell of Goldman Sachs said:
The real estate market is holding up: housing prices edged up last month amid encouraging signs that mortgage rates are starting to come down.
Goldman struck an optimistic tone as its economists also revealed forecasts showing interest rates will fall to 3pc by mid-2025.
In a memo to investors on Sunday, the bank said Governor Andrew Bailey is likely to announce a cut to interest rates in August before further reductions in consecutive quarters.
Ms Bell said:
UK consumer confidence also rose sharply, outperforming expectations and raising hopes of higher spending on the festive season.
Her comments came as new data from Rightmove showed that sellers were still slashing asking prices in December, indicating that the market’s upturn is yet to filter through.
The average selling price of houses fell by 1.9pc in December to £355,177.
Last summer, on one of the quarterly calls (which I really like), I asked how AEWU's policies would evolve on ESG as I had been purging my portfolio as much as possible of companies/funds that adopt ESG policies. The answer I got from the deputy PM was that it is very important to incorporate ESG because it was very warm in London.
Apart from the naive, but rather cute reply, one year on ESG is collapsing as the fraud it is. Multiple states in the US have pulled billions from ESG managers/ESG funds forcing Vanguard and Blackrock to retract both in practise and in narrative. Jamie Dimon, Warren Buffet and Elon Musk agree ESG is b/s (essentially) and last week S/P 500 dropped the ESG scale:
https://www.reuters.com/sustainability/sustainable-finance-reporting/sp-global-drops-esg-alphanumeric-scale-2023-08-08/
My remaining ESG exposure is essentially with three UK REITs one of which is AEWU. While I am aware there are UK laws on net zero that needs to be followed for the time being, I am interested in hearing from AEWU how they evaluate this situation, how they can minimise exposure to forced ESG investment decisions within the framework of UK laws and regulations and how they may be preparing for the day net zero may potentially be abandoned in the UK.
I like AEWU and while I was inclined to reduce exposure a year ago, if the collapse of ESG is finally coming to Europe (perhaps questionable at this time) I may be inclined to double my AEWU position if we can get some thoughtful strategic answers on the next call. That's it.
Tonio - was indeed GEM and I got in and out before xd as it hadn’t reached my xd txt - worked well for a change as made quick 10% and share fell badly xd / heavily into DEC which goes xd this week quarterly currently paying 15% it has fallen badly after recent cap raise but I think it offers a great entrance price / DYOR
Hi Gavster, Fair Oaks's high yield reflects its high risk. According to its latest annual report it's (indirectly) invested in bonds rated at BB or below in the US and Europe and, although the trailing 12-month US default rate rose from (only) 0.29% to 0.72% during 2022, I note that the US default rate is expected to rise to between 2% and 2.49% during 2023 (I wouldn't be surprised to see Europe follow suit). I also note that although the share price has been fairly stable since last October, it's nevertheless c25% down on 12 months ago. That said, 2022 was a vintage year for most dividend paying shares, price wise.
Hi Trotsky.
Fair Oaks has been a great investment for me in the last year. The SP barely moves during the quarters, and though I've seen the SP go down with the weight of an ongoing buyback scheme (reason for the drop from 2.5 to 2), the relative stability is refreshing in todays markets.
TGA also offered a large divi, but both GEM and TGA are subject to large ex-div movements.
I note that Fair Oaks Income 2021 Shares (an IT) is supposedly offering >18% currently but, given that it dropped its last two quarter dividends to 2c from 2.5c previously, the forward yield looks more likely to be 16%. Don't know much about it but it appears to invest in company bonds which may, or may not, have a higher risk of default
GEM went xd today offering around 18%
Income of 18%? Which share is that?
Discount to Nav of 7p.
NAV of £167.10 million or 105.48 pence per share as at 31 March 2023 (31 December 2022: £166.24 million or 104.93 pence per share).
The gap between dividend and earnings is still a concern but closing since last report.
This is a hold/add for me as art of my portfolio.
Investing on the premise that earnings becomes higher than the div so the discount to NAV decreases.
I’m out at 98p folks, got a better offer of income at 18%, will let the confused noise on REITS settle before considering getting back in
Hi broomtree
This is happened to quite a number of dividend paying companies hold.
DEC, NESF for example but are not the same sector at all as AEWU.
So this could be more market wide relating to yields going down.
However, I have the luxury of a free holding acquired from trading the pandemic dip, so my main concern is the safety of the dividend, but I will look to invest again if the SP drops to 89p again.
Cheers
What a difference two months makes! Confess I’m getting twitchy about future for REITS with even a mild recession possible… Got out of RGL and NRR before recent pull back but this has held up better though getting close to my 10% cut off
Currently moved to a small premium and recovered well after the NAV fall so there’s demand there
I think the reality is that until AEWU is trading at a premium to NAV they'll put any fundraising on the back burner. They've said as much before. There are investment opportunities out there and they'd love to do a fund raising but they will not do so at a discount to NAV (unless it is imperative). Last year they expressed frustration that share didn't trade at a premium exactly for this reason (it's holding back expansion and liquidity). C'est la vie.
Was their answer in the live and informative presentation today.
For me as an investor that question needed answering.
No need for more extra finances to get them through 2023 and looking to expand.
IMO hold/accumulate.
Expect the sp to drop at least 2p at open assuming no other news
This has been a great divi payer through very difficult times and I’ve held it for years. I did sell when it went over £1.30 as the value was looking stretched and it was simply too good a capital gain to miss. I started buying back in at £1.05 and was well above water by yesterday! Not good news today but not entirely unexpected given the wider macro picture. I may add a bit if it continues to fall but bottom line divi looking secure… let the NAV do it’s thing, I think the bad news is now in the price
Interesting range of views! I've added to my holding this morning because I think the drop is overdone based on the information provided, and I'm placing my trust in the management to deliver on their promise of a fully-covered dividend by Q3. To be honest, even if the divi dropped to 1.5p/qtr I still think it would be a good return on my investment, and that should be relatively easy to achieve.
How can you say that the share price "got ahead of itself" and keep a straight face? Simple fact, AEWU's share price is either at a premium or discount to the NAV. The NAV has gone down, through no fault/action on the part of the managers, and the share price has followed suit. The share price was previously trading at, or around, 120p because that's what the NAV was at that point. The macroeconomic climate has changed. Whether AEWU will respresent good value at 90p depends. If NAVs keep depressed for a long period then it's likely to start to feed through to rents and/or the ability of AEWU to raise rents. Likewise, whilst the share price obstinantly trades at a discount to NAV (whether it be good or bad times) then the scope for SCRIP dividends and/or future capital raises remains zero and ultimately the managers will start to ask whether there is any point in continuing like VSL (would wind up be a better option).
I think AEWU is a well managed REIT and hopefully they will be able to cover the current dividend from REIT income alone from Q3 onwards but ulimately there has to be question mark over the dividend if the current turmoil persists into the longer term.
I'm a shareholder and think its way too early to assume that the NAV will continue to fall (there is still demand out there) but there is little or nothing that management can do affect the current macroeconomic situation. The worst that management can do in the meantime is lock AEWU into new, sub-optimal rental agreements in the short term as potential new renters try to opportunistically reset the starting rentals based on current NAVs (which may mean that that Q3 target may not be met).