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Sain
If you are so sure of all of this a result of your research, why are you invested here?
If not invested, why are you posting ?
Kristof
The problem is that many of the properties have been pure gambles bought on short leases in the hope that they re new leases or forego break clauses Some of those recently purchased have been bad choices Telford Crewe Redditch Oldbury Wolverhampton &,Nottingham where they failed to undertake due diligence The Sainsburys convenience store had been trading badly and they broke their lease at the first available opportunity
A right bag of spanners
You would never know it by the updates which only contain good news .As ever DYOR.
The problem is when they are located in off prime position any slackening off in demand the freeholder is left holding a very expensive baby Telford being a prime example
The situation hasn't of course been helped by COVID but the writing on the wall came into play well before then for the largest asset Market Centre Crewe which is now a real problem.A situation far beyond their skillsets inhouse
PlazaWest,W.Brom the white elephant the CEO owned who stuffed it into the portfolio they now have a real problem filling the lumpy gap to be left by Premier Inn leaving who have exercised their break
Good luck with your investment
This share continues to deliver on my dividend policy. It pays out, it increases the dividend return and its consistent - whats not to like? The net asset value is less than the current share valuation - whats not to like? I appreciate not everyone on this room is comfortable with how RLE are doing but from my point of view - whats not to like! To all genuine investors in this company I wish you well and hope you keep the faith. Whats not to like!!!!!! Regards from a genuine investor :-)
Sain, what is your agenda here ? No doubt like a lot of others I bought into RLE at + 50p but I’m not getting all bent out of shape about the effects of a pandemic that no-one could have forecast last year. C’est la vie. Hoping for recovery one of these days and meantime I’m thankful that the dividend continues to be paid for the time being. Stay safe all.
ADV
"I have been very impressed with RLE in the way they have kept paying a dividend and have been honest with investors."
Clearly someone who is impressed by a company where the RNS are little more than a PR exercise where bad news doesn't
exist.
"You don't hear things that are bad about your company unless you ask. It is easy to hear good tidings, but you have to scratch to get the bad news." Thomas J. Watson
Yesterday W H Smith announced that they had successfully negotiated on average 45% rental haircuts on lease renewals
during the last 12 months
On RLE's shop in Rugeley W H Smith lease expired in August and were paying £42,500 pa .I wonder what they will be paying now .I guess we won't find out
ADV : Keep burying the bad news
It's a pity LSE don't act on non-investors using these facilities to de-ramp companies."
"You can’t bury a mountain, whatever games you play in the sun."
What is particularly surprising is the absence of ind'l property in the folio or perhaps not as Bond Wolfe have little exposure to this sector despite being located in the heart of metal bashing country
Andrew Osborne RLE's Investment Director of 6 years has considerable experience, contacts and success in this sector having cut his teeth at Kenmore and Highcross
Both companies building up substantial portfolios of industrial property
As with the way of all flesh many industrial property opps. would have come his way. Frustrating he has been unable to use his expertise in securing any .
Shareholders can only wish they had spent the £20m on ind'l estates in the Black Country rather than the Market Centre at Crewe elsewhere just as the smart money was leaving the sector
Fully agree saintly, I have been very impressed with RLE in the way they have kept paying a dividend and have been honest with investors. They put some bigger companies to shame.
I was referring to putting an end to "Doom and Gloom the Undertaker" (I can't remember his user name since I blocked him), who frequents this board despite not being an investor, and having a personal grudge against Paul Bassi. It's a pity LSE don't act on non-investors using these facilities to de-ramp companies.
"Office and retail property in the West Midlands continue to struggle with further drops in demand but industrial property is already showing solid signs of recovery, new figures show."
https://www.thebusinessdesk.com/westmidlands/news/2045635-region%E2%80%99s-industrial-property-bounces-back-as-investors-eye-warehouses
Saintly Good luck with your holding
"I genuinely think the doom and gloom is now firmly behind us. "
What is not to like?
Little prospect of any growth in 2021 just damage limitation Many prudent companies took the opportunity to acquire industrial property to diversify where RLE have bypassed for reasons best known to themselves
The problem is that RLE have a nasty habit of burying any bad news which doesn't do them any favours
Well last month their largest single office building at Telford (33,164 sq,ft) is empty and a loss of £277,000 pa income no income .With holding costs now producing a negative return on capital employed
In West Bromwich Premier Inn have exercised their break which hits next April with the loss of £310 ,000pa
This is their largest single tenant and rent
At Crewe the Market Centre their largest single asset which they paid £20m they now have some substantial voids and loss of revenue and service charge contributions They have their work cut out there to prevent any further decline
Capital value of this asset has plumetted only slightly mitigated by a potential Burger King resulting in loss of car parking
Units currently being marketed by Jackson Criss
Address Rent Status
Crewe Shopping Centre
Unit 16-17, £85,000 pa Available
Unit 18-19, £100,000 pa Available
Unit 21, £27,500 pa Available
Unit 6/7, £80,000 pa Available
Unit C £130,000 pa Available
Adv, I genuinely think the doom and gloom is now firmly behind us. As I see it we have a share that is sitting well below NAV, is paying a very decent dividend and must be on the radar of a few companies for a possible bid. RLE is not afraid to make decisions and will actively seek to cash in or exploit the current market situation. All in all this is one share I am glad to have in my portfolio. What is not to like? Good luck to all fellow investors :-)
Yet again more positive news. This is a share I am happy to hold in my portfolio for dividend yield and for growth. Long may the rise continue.
Let's have a party when the CEO actually spells out the full picture -that is all investors want to know
BEARWOOD
Good news with Aldi and the price agreed looks fair but how much has the value of the remaining shops deteriorated ?
LEICESTER
Until today's RNS was announced about the delayed completion investors were unaware that it had not been sold last year having been advised it sold for £2.6m on the 26th Sept 2019
Kept in the dark
Let's have a party when we get back to 50p. Put an end to doom and gloom ??
Well nothing wrong with the Aldi deal but unfortuantely they don't receive the monies until next September but a good move nevertheless
As usual we dont get the full story
West Bromwich sounds carbon zero so thats OK
Counting chickens before they are hatched
Coseley
Its not clear whether this was a conditional sale and monies received or a sale with a top up payment or whether or not the price is above or below book
Leicester
This was due to be completed 15 months ago and still not completed so lets see if the monies arrive in December
"False optimism sooner or later means disillusionment, anger and hopelessness." ~ Abraham Maslow.
Everything looking good today. Positive on both retail and offices, rent collection improving, dividend fully covered.
Paul Bassi, Chief Executive, commented:
"Management's experience and proactive approach to asset management and the ongoing strategy to operate a diversified portfolio has supported our robust levels of occupancy and rent collection."
"We also remain confident that occupier demand for our assets will continue and we are mindful that the current environment may create opportunistic sales and acquisitions for the Group."
Here is a more balanced view of The W Midlands market where unfortunately the portfolio is devoid of industrial property
"The West Midlands’ rental growth projections also remain in negative territory for office and retail"
https://www.thebusinessdesk.com/westmidlands/news/2045635-region%E2%80%99s-industrial-property-bounces-back-as-investors-eye-warehouses
As usual a trading update which raises more questions than answers .Unacceptable .No update on Leicester on the sale which should have completed in Sept 2019
RENT COLLECTION
Again failing to advise shareholders on the deferrals and adjustments and the impact of revenue . notably Travelodge at
Hollywood where they have taken a sword to the rent
"Updated rent collection for the March quarter (March to June) is now 93.44% (ADJUSTED FOR MONTHLY AN DEFERRED AGREEMENTS ) up from 90.7% reported on 21 September, 90.16% reported on 15 July and 81% reported on 15 June.
June quarter (June to September) rent collection has now risen to 90.23% (ADJUSTED FOR MONTHLY AND DEFERRED AGREEMENTS ) up from 86.9% reported on 21 September and 81.94% reported on 15 July.
Occupancy and Wault
27 lease events but no mention of what concessions have been offered to extend WAULT
Brushes aside yet again that Sainsburys ,Premier Inn have exercised breaks
Office Portfolio
"We anticipate strong ongoing demand and the potential for rental growth and capital appreciation."
The lease expiry on one of the single largest occupations means they now now have an entire empty building in Telford
https://www.bulleys.co.uk/titan-house-euston-park-telford-1286-p
An entire empty office building In Oldbury since acquisition with no update on what Npower will be doing next year
Although in the property details it states
"8,244 sq ft to 52,333 sq ft" ?
https://bond-wolfe.com/properties/birchfield-house-joseph-street-oldbury-west-midlands-b69-2aq/
Half the space at Venture Court Wolverhampton
https://www.bulleys.co.uk/venture-court-1226-p
RETAIL
"As reported in September, a somewhat normal pattern of trading has been enjoyed by a large proportion of our occupiers for the last few months, with our neighbourhood and convenience retail portfolio in particular showing resilience and strong performance."
Bury the bad news!!!
Sainsburys showing resilience by voting with their feet to join Bathstore at Nottingham ,
https://www.realla.co.uk/details/17530157
Ex Bathstore at Newcastle under Lyme
https://masonowen.com/property/Retail-Warehouse-Barracks-Road/106030
Brighthouse in admin and a big question mark on Pea****s and the gaping voids in their major asset at Crewe
Jackson Criss marketing this extensive selection with a huge loss of rental income
Crewe
Unit 16-17, The Market Shopping Centre £85,000
Available
Crewe
Unit 18-19, The Market Shopping Centre £100,000
Available
Crewe
Unit 21, The Market Shopping Centre £27,500
Available
Crewe
Unit 6/7, The Market Shopping Centre £80,000
Available
Crewe
Unit C, The Market Shopping Centre £130,000 pa
Available
I guess it's the best investors can now expect the daily RNS advising them that the BODS have bought in yet another handful of shares
What they really want to know is the current state of play with lease renewals, voids leasebreak triggers and income
It really is unacceptable that value changing events are left buried and shareholders are not fully updated.
13 months ago shareholders were advised
13th Sep 2019 — The Company expects to complete on the sale of City Gate House, Leicester on 29 September 2019, for. £2.6 million to a residential developer.
However all these months later apparentally it has yet to complete the buyers have managed to kick the can down the road to the 20th December 2020
Don't hold your breath
One mightily relieved fund manager grateful that the company & Directors have taken the weighty burden off their shoulders
Sticking plaster .Certainly don't feel its the best method buying in purely to bolster the share price but at least it gives the opportunity for those wishing to sell the opportunity to do so in a more active market .
What I would like to see is some proposals on what they are going to do to try and fill the voids that are appearing and add some value to the portfolio
And it gets even better - Showing true faith in the company. The professional deramper must be seething.....
Real Estate Investors Plc (AIM:RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a diversified portfolio of 1.59 million sq ft of investment property across all sectors, announces that the Directors of the Company purchased, in aggregate, 1,364,928 ordinary shares of 10p each ("Ordinary Shares") at 28 pence per Ordinary Share on 20 October 2020:
Well Its the least Bassi can do is buy in some shares .He promised to do so when trousering a bumper profit when he offloaded his white elephant West Plaza into the company
MARCH 2016
"He said he intended to re-invest his part of the net proceeds into REI in the market, which would add to the 375,000 shares he purchased in December 2015. REI's other directors said they consider the terms fair and reasonable."
The break clause now exercised by Premier Inn and a gaping void to look forward to. I wonder what that will be valued at and whether that figure will be made known to investors.
A lot less than the £8m than RLE paid for it . They are going to have to produce a rabbit from a hat to salvage that
Backward step .Shareholders can only hope they chose their entry level well.
its a sad reflection that they are now unable to come up with any ideas to use capital to add value to the portfolio
especially as there is a whole wealth of opportunities appearing in the market to add value
They really missed a trick not filling up with industrial property .Big mistake as there is still a healthy investment market Opportunity lost
The Portfolio
Titan House where they will be extremely lucky to bag a single occupier so capital more than likely to be required to subdivide etc
The Market Centre Crewe which will require monies for upgaarding in an attempt to fill the voids They also have the difficult task of dealing with the soon to be mpty West plaza which will require a whole shedful of capital to regain any value
Good to see they are as good as their word and they didn't hang around. From a selfish point of view they could have waited until after I reinvested the dividend on Friday lol. Well done and good luck to all rle investors for the future.