To deliver an attractive total return to shareholders with a strong focus on income, from investing in UK commercial property, predominantly in the office and industrial sectors in major regional centres and urban areas outside of the M25 motorway.
Find out MoreLondon South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
PG73, it is refreshing for an old-fashioned chap to read a post which does not contain extreme language surrounding the certainty of the imminent demise of RGL. Do you remember the embarrassing exchange here on whether RGL could continue as a going concern? There is no realistic likelihood of any such catastrophe. There are certain short term challenges to be dealt with. In particular, the retail bond situation needs to be addressed. It needs to be clearly understood that RGL is not looking for new money but replacement of existing financing. This can be readily achieved in a number of ways. The worst outcome here is a higher interest rate for the entire £50 million. Clearly, this would be regrettable (implying a small reduction in income available for dividends) but far from catastrophic. One should not forget that as at the year end 2023, there was £30.2 million unrestricted cash.
Concerning the LTV target of 40%, this is only a target. Nothing happens if this is exceeded. Loan covenant LTVs are more consequential, in particular the Santander financing where there is the real possibility of breaching the 50% LTV limit when the limit is reduced to this level in June. However, there is no significant likelihood of draconian action by any lender, providing the business continues to generate significant cash to make interest payments.
HG - you're old-fashioned! However, I totally agree that the leasing news is very encouraging. In normal circumstances, I don't think this would be worthy of an RNS as it's more 'business as usual'. Unfortunately, in the unusual situation RGL is in with so many concerns (some real, some mischievous) it might be considered as potentially price sensitive and therefore subject to RNS.
I think the Martley stake is the big news (great find Chris). I also love the quote from their CEO back in January - when asked about opportunities on the public market, he stated "There are companies that look just absurdly cheap, particularly those that are externally managed that, usually unfairly, are just hated by the market." I think the stake he subsequently built in RGL shows exactly what he thinks of the valuation. Sometimes it's good to be old-fashioned!
Call me old-fashioned, but I consider the RNS to be very encouraging (leasing of additional 30,000 sq ft, even if it is in Glasgow?). I do not share the view that RGL property values are over-stated (what evidence is there of this?), nor do I consider that RGL is a desperate seller.
Does look slightly desperate to be issuing a RNS just about taking on tenancies of one building in Glasgow.
More BS. I suppose letting in line with latest estimated value is a good result for these boys.Portfolio value still overstated for a desperate seller imho.
Thanks Chris.
Yep. Martley are probably either looking to provide finance, or to take over the management of RGL themselves. But whatever happens will be dilutive to shareholders in one way or another: higher interest payments on alternative finance means less cash available for the dividend.
For each 1% interest above the current coupon on the bond, £500k less cash is available to pay the dividend. Assuming a rather generous 8% interest rate, that's a 7% reduction on the current dividend (on an annual payout of 4.8p). 10% interest is an 11% reduction. etc.
June - yes 'June' - is getting closer.
Martley are yet another small- time team of chancers trying to make a name for themselves.Not a lot different from the current team,but without the backing of ARA.Like the rest of the world they could probably run RGL better than the current load of muppets.Or looking to elbow into a fee- earning role.Its an obvious asset- strip for a well- funded client.
Chris, Thanks for taking the time to post that link to Martley. Makes very good reading. Rgds, S
Thanks for this'
"The building of a stake by Martley, the company says, is a reflection of its belief in the long-term strength of the regional office market and that an increased desire by employees to work near home will reduce the level of long-distance commuting". That's my perspective too even though it may be reflected in more working from bed(read home)...
They seem to think they have a better refinancing plan. We will see.
Https://reactnews.com/article/crofts-martley-builds-regional-reit-stake-and-takes-swipe-at-managements-refinancing-strategy/
https://www.martleycapital.com/
An interesting development having another asset management company building a stake in the company at current SP. Whatever next?
House Brokers are something I struggle to believe by the very nature of their position. Whilst I appreciate things haven’t been easy, the debt on the bond side should have been sorted well ahead
Edison just seem to be clear there will be a rights issue or a further debt issue. Just a shame the management here are leaving it so late
Www.edisongroup.com%2Fresearch%2Fperforming-as-expected-ahead-of-refinancing%2F33446%2F
/www.edisongroup.com/research/performing-as-expected-ahead-of-refinancing/33446/?j=197578&sfmc_sub=12780302&l=716_HTML&u=5795183&mid=536001663&jb=1
Morning Krusty, Good to see we are still treading the same path albeit a bit of a bumpy one with RGL at the moment. But then again whoever said dealing in shares (especially RGL) would be easy!!!! As long as the dividends keep coming then happy to keep collecting. Continued good fortune to you and may your gains exceed your losses. Rgds, S
Thanks saintly, and the same to you. Pile those dividends high!
👍
Dividend day is once again upon us. Pleased to say that all monies are now in my accounts. Continued good fortune and patience to one and all. Rgds S
Yip roller coaster or what looking for some stability and clarity on Bond repayment before getting back into this
LOL! Yeh someone commented here that the 20p=>13p tank, following the bizarre RNS a couple weeks ago, was on no new news whatsoever, and therefore it should trend back to 20p. Et voila! And now: an ER which says.. nothing everyone didn't know already. How many of us are kicking our own behinds about not doubling-down at 13p!?! Some talking head - was it ware Buffet? - said investors have enough brains, but not enough balls...
Last week everyone thought RGLs days were numbered. Now it's climbing 10% in 1 day. Easy money if you know how to play the game.
Now I can see light at the end of the tunnel SP should start going back up .
🤞
Finally getting somewhere. £22 million under offerand another £20 million under negotiations.
Total £42m if LTV is 55% should leave £20m free after £22m is repaid loans.
With the other cash £35m+20m that should cover the £50m bond.
More sales to follow should turn round this sinking ship, shame inglis didn't do it 18 months ago, would have got much better prices.