The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Today the 80p level is hit. The ban on action .....eviction ....against commercial tenants has a long way to run yet. End March next year. Could hang it out until end of 2022 I reckon. Crazy. Disgusting.
I would think that rent will remain unpaid until companies take legal action. Obviously the judge found that Cineworld had the ability to pay, as I am sure would be the case once Boots and JD are sued. Why should investors in property companies suffer for the sake of retail and entertainment companies ?
"Further to Cineworld being sued by AEW UK, I see from Value and Indexed Property Income Trust's Annual report (VIP - but not on this site who still list VIP as Vipera) that Boots and JD Sports are another two companies who "can but won't" pay their rent. Fairly disgusting considering that Boots have been open throughout the lockdowns."
In reference to Cineworld they have vast debt and are struggling. on the other hand boots and JD sports are doing very well. Although JD is via internet sales. I have read that unpaid rent is still owed? Correct me if I have got that wrong??
It makes sense that Boots aren't paying their rent as I've seen loads of commercial property for sale on auction sites and a lot of them have been tenanted by Boots.
Further to Cineworld being sued by AEW UK, I see from Value and Indexed Property Income Trust's Annual report (VIP - but not on this site who still list VIP as Vipera) that Boots and JD Sports are another two companies who "can but won't" pay their rent. Fairly disgusting considering that Boots have been open throughout the lockdowns.
why would we drift in the summer when revenue should be solid and stable the pubs will be sold and debt will be reduced ?
There is the 85p level. I agree that you might get the 75p level as we drift in the summer.
AEW UK successfully sued Cineworld and another tenant who could pay but wouldn't. If there was arbitration I am sure they would have used that. When NRR gets nearer to 75p I may buy a few. Long way to get though, and no good news likely.
Where's this arbitration coming from for rent bills? That only refers to the amounts outstanding from lockowns.
It's a blanket extension as per my reading moving forward. Quotes from industry figures seem to confirm this:
"But Danielle Drummond-Brassington, a real estate disputes partner at law firm CMS, said: “Nothing is done here to address or recognise the financial pressure landlords are facing, or that there are tenants out there who can pay but have been taking advantage of the government’s measures.”
"
Peter now is a good entry for the run back to 100p plus the 3p dividend. There is a compulsory arbitration process which needs to be completed to gain exemption from rental payments. Thus those that can pay will have to and those that refuse arbitration will also have to pay. Therefore only those in genuine distress will be allowed rent holidays. Overall this is good for tennents and landlords alike.
The point is it’s not restricted to those tenants that cannot pay. You don’t want to pay is also ok. That’s a long time until next March. It suggests yet another lockdown although the thumping loss today in a by election suggests people are very fed up at the moment. Fed up with changing plans and policies and refusal to close borders until the new variant was well established. Lack of political stability is very bad for reits like this; investment decisions etc so down we drift
Think you found the reason Jstar!
Just came on to post the same thing -
“Property companies are also lower after the government extended a ban on evicting businesses unable to pay their rent due to the pandemic. The ban was due to expire at the end of this month but will be extended until March next year.”
Wonder where this takes us then. Perhaps some consolidation in the mid 80’s before stabilising?… interesting stock this one. Can’t figure it out!
FT reporting commercial eviction ban to be extended to march 22!
https://www.ft.com/content/3e617ad0-b5c9-4288-846f-c81dca041262
And because of doubts that the pubs can be sold at book value….
The results presentation on the NRR website highlights the trend in valuations.And decline in alternative use values.
It's because the shopping centre valuations have continued to collapse.
With domestic life *almost* back to “normal” I’m struggling to see why there hasn’t been a substantive rise here. I’ve been in and out of this share from 70p - 102p.
Currently back in at 98p with 1/3 of original holding, in case need to average down - not really concerned, just more curious tbh.
No obvious reason for the SP back in the 80’s when it seems it’ll be business as usual soon enough!