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you need to take action if you wish to sell any - via your nominee account holder
I note that the company are proposing to buy 1 in 40 shares @ 250p.
This seems like a hybrid dividend / buy back move. I suppose it makes sense for the company given that they reckon their NAV/share is 329p.
If this happens - does it just happen automatically or is some action required ?
CLS is now a REIT.
I have noticed that they are contemplating a tender offer due to the share price being well below asset value - they did tender offers every year at one time instead of dividend payments.
A good thing to do if the gap remains.
at just over 187p
Having watched the webcast one thing stands out. Annual spending is circ £20M but for the next couple of years its going to be £60M+
Could this extra spending, some to go more green be part of the reason
Hi everyone. Just joined you this morning with my first batch of these. Mainly due to the large discount and possibly of it converting to a Reit.
Hopefully I can learn a bit more from experienced heads here as I've only speed read the last couple of reports.
I'm not too clear why this is struggling so much right now. Covid has had an impact but there seems to be something else.
Having multi bagged a great deal over the last 21 years, I am still prepared to top up from time to time - may well do so again if it went a bit under 200p.
longtime, you are quite right, CLS is not a REIT.
Unfortunately an edit function is not available on LSE.
looking rather tasty down here.
yesterday (averaging up)
Not today it seems
The company that keeps on giving
I looked at the share graph this morning following the results and noticed, as with many shares at the moment, it is at the end of an ascending triangle phase where it has been suppressed around the 216p level for the past 5 months. Sellers have managed to pull the price down to 168p at close on 14 May, 185p on 30 June, 188p on 24 July, 192.5p on 26 August and 205p at close yesterday. With a PE of 9.3 (on TradingView) and steady financials throughout COVID, I am confident that this will break-out in the next couple of weeks. Please note, that it may have a false break-out below the current levels, but if this happens it will be a buying opportunity in my opinion. GLA!
fp
''No other UK REIT ''
CLS is not a REIT
The rent collection % stats.
No other UK REIT I'm aware of has collected rent at this % over the last
two Quaters. Not even Segro comes close.
Had a big Covid19 led drop.
Didn't post at the time, but I bought more at 188p on the 26th June.
They certainly must know what they are doing at this company.
First bought 20 years ago. Have no desire to sell, ever.
particular
Any particulat reason for the SP rise in last couple of days?
20 bagger in 20 years
"..disposals put the Group in a strong position with cash and liquid resources of c.£185 million, which we intend to reinvest in further acquisitions."
The company is doing very well but with the director selling £1.3m, a new high hit, the large debt and PE going over 20 I've decided to sell. Mat re-buy if it drops to 210p.
gla
Today's share price down on the acquisition RNS which is no surprise after the rise on friday, breaking through resistance on what was almost certainly leaked news.
What is interesting is the share price retraced back to the old high and bounced off it. This is a classic move where after a break out the share price retraces back to previous resistance, now support, before continuing to climb. This move is often watched for by traders and a signal for them to buy.
Possible moves from here could be a new side ways trading range of 250-265 while the sp consolidates. Sensible stop losses would be set some where under 246p.
Interims | Latest purchases highlights attractive strategy
Asset recycling continues at pace.
CLS has unconditionally exchanged contracts to acquire 2 London office buildings for a consideration of £66.65m, excosts. The deal adds nearly 4% to the Net Rental Income and is c3% EPS enhancing in a full year. As a result, we raise our Target
Price by 10p to 310p, implying 30% upside. This brings the total to 8 properties bought this year, with 7 disposals. We believe CLS Holdingsshould be a core holding in any investor’s exposure to the commercial property sector. BUY
6 Lloyds Avenue; 2nd site in East London
The first London acquisition is at 6 Lloyds Avenue. It is a 34,640 sq.ft multilet office in the east of the City of London. It is 72% let to 27 tenants with a WAULT of 2.2 years. There is a clear opportunity for CLS to invest in refurbishment that is likely to lead to higher rents and an improved yield. It is located in an exciting area identified by CLS.
The Clockwork Building, W6
The 2nd is the Clockwork Building that has recently been refurbished, having the pillars and ceilings stripped back to exposed concrete. It consists of 39,626 sq.ft of office space that is 100% let to 6 tenants. It has a WAULT of 3.2 years. It is located west of Hammersmith Broadway and is less than 5 minutes’ walk from Ravenscourt Park tube station (District Line), in Zone 2.
Unwarranted 28% discount to NAV
The combined deals offer a NIY of 6.2%, rising to 6.8%. We have raised our NRI by c4% and EPS by c3% (see table of page 3). Consequently, we have also lifted our Target Price by 3% to 310p which implies 30% upside. CLS is currently trading on a 28% discount to our estimated EPRA NAV of 332.1p.
The dividend yield stands at just over 3%.
The 5% YoY increase in EPRA NAV highlights the strength of this diversified property group. CLS’s drive to recycle value is very evident with 6 properties bought and 2 sold in H1, with another purchase and 5 disposals announced since period end. The shares should be a core holding in any investor’s exposure to the commercial property sector. BUY
CLS delivered solid interim results, with EPRA NAV increasing 5% to 325.3p/share. This healthy increase was primarily due to portfolio gains of £36.9m, and a strong £21m increase, in the value of the company’s shareholding in Swedish logistics company, Catena AB. Contracted rents increased by 6% in the period to £116.2m. Basic NAV increased 4.5% to 287.8p/share
The focus of investment for CLS is likely to remain Germany, the UK’s South East and France for the foreseeable future as demand remains robust. The markets in Germany and France in particular are undersupplied, with the former currently attracting rental rates that are significantly below both those available in the UK and France implying that some growth in rates is probable. The sales of Catena shares for c£114m adds to the ‘war-chest’.
CLS’s office portfolio continues to produce impressive returns in all three geographies. This good trading and a weak share price have led to CLS’s discount to EPRA NAV of 309.8p widening to 24%. On a FY 2019E basis, the discount is even wider, at 30%, due to the anticipated growth in the value of the assets and the appreciation in the value of the company’s 10.6% holding in quoted Swedish logistics company, Catena AB, now sold.