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Morning 1msn. I wouldn't quite say "strong", but then I have been here for so many years I have purchases over £3 and used to receive a 21.6p annual dividend! Summary:
UFFO: 4.4p
Div: 3.5p ("up" from 3.3p, but not comparing against a stable dividend year imo)
LTV: 33.8% (good, well within range and comfortable)
No refinancing required for 5.2 years (good, hopefully can pass over the rising rates "blip")
Interest rate: 3.5% (similar to other REITs)
Cash: £95 (over 30pps)
NAV: 132p (all REITs trading at big discounts)
Rent collection: 97% (good enough)
Occupancy: 96.3% (always high, good but leaves NRR open to it falling as it can't increase much)
Recent management contracts based on % of rental income. No guide though.
Overall, it's steady but uninspiring. It is a long road ahead in my opinon (unless they go for SD's liquidation, which they won't). I do struggle to read the updates without wanting to puke at the management-speak drivle.
Guitarsolo
Very strong set of results
So we are here again ... NAV 131 a near on 10 % dividend and a 40 % discount to NAV... crazy really
So we are here again ... NAV 131 a near on 10 % dividend and a 40 % discount to NAV... crazy really
You are absolutely right guitar solo..they have caused a greater loss to shareholder wealth over the past couple of years than even Bitcoin has ! Despite this , their presentations are filled with self congratulatory statements .. the fund managers don't hold them to account because it is not THEIR money which is being lost
The foray into pubs has to be one of the most crass investment decisions made by even the most mediocre of company management boards ..take a look at admin costs and remuneration packages ..we are all being taken for fools..
SD235 has the best strategy from here. Sell off the portfolio property by property and downside staff to just those required to sell the properties... and pay back shareholders the funds that remain , which should at least provide some comfort to the long term shareholders who misplaced their trust in a management board that should switch to renting out garage space ..
True, SD, not much movement. But it's probably not the sort of deal that would move the needle much. I remember when they announced the Canterbury deal and that didn't either. Presuming that NRR has negotiated a reasonable fee for managing these assets it's the sort of thing that gives a nice guaranteed income for the company but doesn't expose it to the bigger wins/losses of being the landlord owner. What could be good though is that they will gain insightful knowledge during the management so that, if one of the assets becomes available to buy, they can cherry pick those where they see the best potential to exploit.
Besides that, it was just nice to have an announcement from NRR about anything!
Guitarsolo
Worth looking at RNS for today.
The market isn't overwhelmed by it!
Found it 30 days
Not talking about old bed and breakfast nor am I talking about moving into isa. In the past you could do it overnight now you have to sell and wait, how long before capital gains tax isn't applied to a repurchase. Thought might be 3 months?
Not a lot of logic in today's fall.
Looks it
Never thought I would get a chance to buy at this level when all UK reits trading near their yearly highs again... NRR is mispriced.
back to 80's after that CPI number
Hammerson is back to August levels... we were 90 p in August...
Being left behind again...
I think interest rates may need to come down first before we would see a significant rise in the share price. I think eventually NAV will fall as opposed to share price rising. Ignoring increasing profits countering that.
I think interest rates may need to come down first before we would see a significant rise in the share price. I think eventually NAV will fall as opposed to share price rising. Ignoring increasing profits countering that.
https://www.stamfordmercury.co.uk/news/discount-supermarket-could-come-to-town-centre-9281579/
Many REITs are trading at huge discounts to NAV. It's not just REITS either. I guess its symptomatic of the risk-off environment.
I'm invested on a long time horizon (10 years+) so rebuilding EPS and DPS will carry the share price back up. At least, I hope it will.
So are we saying the the NAV which was valued 7 weeks ago has gone down,, Nav was 133.. we are trading at 68p.
We have 130 million in cash... crazy really
Ii would to but I don't think it's possible within 2 to 3 years. Interest rates will have to stabilise and be seen to stabilise.
SD, to be honest I would rather they rebuilt the business in the mould that Alan Lockhart did. Good quality retail parks, convenience-led, focus on groceries etc. Covid shattered a business like this and it was just unfortunate. They need to keep debt down, occupancy up and rent affordable (so you don't get defaults). Build EPS from 6p to 8p to 10p etc.
It will take time.
Sell sell sell sell sell!!
Supposedly during the very low interest rate period, some investors put there money into property REITs as they were considered lower risk than stockmarket in general. Got that wrong! although who would have come up with covid.
The main thing to note is that NAV have stopped falling which is a clear statement that share prices have fallen to far.
Buying shares at this price means that gap between gilt returns and reit dividends is to wide.
Or NAV have further to fall.
I suspect that when interest rates stop rising then and only will we know what NAV really are, as they must be based on the selling price of the properties which is set by the returns.
No time soon I suspect.
Personally selling up is by far the best option. Offer for each and every property.
1msn, I would say it is unloved because there are many here who have suffered massive capital loss. It might be OK for those that jumped on board at 40/50/60p, even sub £1.....but remember pre-Covid, pre-pubs, this was trading at over £3 and paying a 21.6p dividend! It was a stable company then and obviously factors since then have hurt it very badly.
As smorrisjones says, we need that clear strategy to regrow the business. I accept the fact it will take a long time but the basics are still there.
Management need to be super-smart to maximise returns. That can include buybacks if the share price doesn't reflect value. Unfortunately, they seem more interested in using management speak to paint over the fact that some of their shareholders have suffered paper losses of 70%!