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Thanks saintly, continued good fortunes to you and yours. Last week of the month, let's hear it for UKW, HFEL, AIRE, API, TMIP, CTY & a couple of funds paying dividends!
Krusty - Totally agree with your comments. This is going to be a watch, wait and keep collecting the dividends. I think the board are looking at getting this wound down sooner rather than later so they can reap the financial rewards. Be a shame to lose RLE as this has been an excellent earner for me but as you say "Hey Ho" . Continued good fortune in all your dealings and may your gains exceed your losses. Rgds, S
All pretty positive under the circumstances, despite further disposals totalling £5.44m contracted rental income has remained unchanged at £10.9m. Hopefully this means the dividend can be maintained for a bit longer yet. Such a shame this is being wound up, RLE has survived the crisis pretty well and after the recent "housekeeping" looks set to prosper as things gradually improve and interest rates begin to fall. Hey ho, it is what it is.
Krusty - Would be good if someone suddenly showed an interest in RLE though that is just wishful thinking. Happy to take the dividends in the meantime though a spike in the share price would be most appreciated lol. Continued good fortune to you. Regards, S
At least RLE has been moving in the right direction over the past 3-6 months though saintly, unlike RGL and many others. Long way to go to get back to pre-Covid levels but going the right way. Shame it's being wound up really. If VSL is anything to go by, it's going to be a long, slow process.
Well hard to believe it is that time already - dividend day!!!!! Monies already in the accounts and it's Friday. where has the time gone? Well needless to say the share price has been pretty flat over the lasts few months but in all honesty that is no big surprise. Still happy to enjoy the excellent return (more so to those who got in at this price!) that this company affords. As a healthy cash earning share I am still happy to have this in my portfolio's. Continued good fortune to all those invested in RLE, those considering getting in, those watching or those who just enjoy reading the board. Rgds, S
Am also mostly an income chaser and have several of the shares you discuss (including RLE). Do you look at US and Europe too. And if yes, would be interested in some ideas. Thanks!
Haha, a month without receiving a dividend would be a bloody disaster saintly! A week makes me twitchy. Which reminds me, EAT should be paying out today...
Krusty - A month without receiving a dividend is a month wasted!!!!!! Rgds, S
Thanks saintly, I've still got a few shares that are keeping my head well above water for now at least. Hope you're doing ok and keep banking those dividends! K
Krusty - Looks like we are similar stocks and on a similar journey so it is going to be interesting times ahead for sure. Given the number of stocks I hold I am not looking to add any more new companies until such times as I lose some of the poorer performers. Oh hang on that could be most of them lol lol. Though I will have a look at those you mentioned so thanks for that. Keep the faith and may your gains always exceed your losses. Rgds, S
Interesting saintly, I guess we're both looking for income so there's bound to be overlap. My REITs also include AIRE, AEWU & RGL, but also SERE, IHR, THRL & SUPR. All have been flattened in the past 12 - 18 months but most (accepting RGL is a basket case) seem to be recovering slightly now. And all paying a decent dividend too, for now at least. My "ones to watch" for income (not REITs) include FAIR, SDIP, BATS and TFIF so as my existing investments (VSL, RMII, RLE & TENT) wind down and start returning cash, I'll most likely look to make investments there to maintain diversity rather than topping up existing investments. Still undecided on FAIR and BATS for now though, pending more research & news.
Like you say Krusty it is getting harder to find decent payers. Amongst my reits I have Aire, lxi, aew and rgl. All decent payers but all could possibly do with merging or be subject to takeover. Perseverance is the word we need to use lol. Continued good fortune with your holdings. As for RLE just watch this space.
Rgds, S
Yes, API being merged into CREI currently too saintly, so it's possible. However, I have API, VSL, RMII & TENT in my portfolio, apart from API all are being wound down. All are paying decent dividends currently, mostly covered, but are disappearing within the next couple of years making it harder for income seekers to maintain a diversified portfolio. Anyway, it is what it is, I've still got alternatives where I'm not currently invested but it's getting harder to pick safe investments for decent income.
Krusty - Maybe I am reading too much in to this but I think a takeover is on the cards. I read and reread the latest update and it just had something about it. Now as for your comment about merger's I think that is likely. We are already seeing LXI being courted by London Metric and I can see a few others going down this route. Makes sense surely from a synergy point of view.
Rgds, S
"Disposal strategy" over 3 years. It's been coming, but why can't some of these property businesses merge to gain scale & reduce costs? Anyway, there you go, over & out from RLE.
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.
AVAILABILITY
Crewe Unit 6/7 Market Centre, Crewe, 2,205 Lease £80,000 AVAILABLE
Crewe Unit 16/17 Market Centre, Crewe, 2,860 Lease £80,000 AVAILABLE
Crewe Unit 18/19 Market Centre, Crewe, 3,796 Lease £100,000 AVAILABLE
Crewe Unit 21 Market Centre, Crewe, 835 Lease £42,500 AVAILABLE
Crewe Unit A Market Centre, Crewe, 5,596 Lease POA AVAILABLE
Crewe Unit 4/5 Market Centre, Crewe, 3,945 Lease £85,000 AVAILABLE
Crewe Unit 12 The Market Centre, 1,473 Lease £35,000 AVAILABLE
Crewe Unit D Market Centre, Crewe, 36,117 Lease POA AVAILABLE
Best outcome for shareholders here is for the Bassi family to pick up the rump for a modest premium over and above current share price .
Thier policy of selling anything which can achieve book value or over has been relatively successful with the shopping parades broken up.
The problem is the majority of the kit left unsold is a bag of spanners .
They have even set to selling off bits of the Market Centre Crewe which will leave a right pig's ear behind .
With the value & size ofthe portfolio diminishing to the point that its too small for the maangement team to remain viable especially as they have stopped buying .
Asset managment bascially boiled down to the odd lease renewal and then ready for Bond Wolfe to trouser some more sale fees
Meanwhile Crewe which is nearly 10% of the whole portfolio looks a sorry sight
Thanks saintly, yes I'm holding on here. It's like many of my other investments currently, inexplicably down way below the NAV. I'm hoping the current wave of optimism regarding interest rates will continue and hopefully things will settle down a bit. In the mean time, my dividends seem to be holding up quite well so I'm not too concerned about the capital decline, I've been here before & it's always temporary.
Hope things are going ok for you and your investments, roll on the next divi here.
Seems like only yesterday since the last divi but here we are once again. Monies in accounts already so thank you once again RLE for these healthy contributions. Not really one to set the heather on fire, the last 3 months have seen very little movement on the share price. Given the overall state of the markets and REIT's in particular I am actually surprised that we have not seen more of a downward push so all in all that is something positive. Slow and steady seems to be the mantra for the moment. Continued good fortune to all RLE investors, those considering getting in or those simply watching. May all your gains exceed your losses. Rgds S
Krusty - Hope you are continuing with RLE and having success with whatever other shares you continue to deal in. Rgds, S
"No mention of the loss of Wilko at Crewe ?"
They do in fact mention it someway into the detail saying ius a loss of 2% of income Whether or not that includes unallocated servuce charge is unclear .
"Management have focused efforts on an opportunistic and targeted sales programme with a view to significantly reducing debt and leverage and returning capital to shareholders."
So effctiyvely giving up on asset management and adding value or using cash proceeds to make some selective purchases
"This will provide us with a reduced portfolio, which assuming a more normalised marketplace, may attract a corporate or portfolio buyer."
Is there likely to be a corporate buyer who will take on those ageing office assets in W Brom where heavy cap ex is likley in the future? Looks like the most likely buyer is Bassi for the rump if a substantial discount to BV is going begging
No mention of the loss of Wilko at Crewe ? They are now trying to sell some of the shops individually on the edge of the centre in Crewe ?
A task more difficulut for those inside and the complication of dealing with the apportionment of service charges A right old mess
Yet another killer blow for the Market Centre Crewe
https://www.mirror.co.uk/money/wilko-shutting-another-38-stores-30974288
Wilko closing on the 21st Sept a loss of a 6 figure rental and also now *a big chunk of unallocated service charge to absorb .
Foolishly RLE made this their largest single asset purchase just as the smart money was leaving .
i wonder what it's currently sitting in the books at £12 /13M ?
Has anyone seen an analysis of the impact of the new net zero law on REITs?
Or even an analysis of the costs involved previously?
Many thanks!