Sapan Ghai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Real Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a portfolio of 1.6 million sq ft of investment property across all sectors, announces that, on 20 October 2020, it purchased 6,250,000 ordinary shares of 10 pence each (the "Buyback Shares") on the London Stock Exchange through Liberum Capital Limited ("Liberum"), in accordance with the terms of its share buyback programme announced on 20 October 2020 (the "Programme"). The Buyback Shares acquired will be held in treasury for cancellation.
ADV
Forever clutching at straws with your unswerving loyalty to a set of BODS who have made some poor investment buying decisions
Any spare monies should be used to payback debt or retained for Cap Ex With capital values heading south and more voids LTVS are heading into dangerous territory .
Tenants under more pressure with more lockdowns ever present so revenue under the cosh .
In addition a market which is likely to throw up some buying ooportunities where cash is king
Disappointed that he has failed to mention anything in the RNS about the voids appearing in the portfolio and how rent collection is faring
Now that is really showing faith in the company. If anyone knows the true value of our shares, it is the company itself. A massive buy went through yesterday afternoon.
The CEO could do worse than read"Chairman's Ramblings" in Panther Securities latest update . Andrew Perloff says it exactly as it is on the tin He calls a department store , a department store .A shopping centre,a shopping centre
Keeps shareholders up to speed when gaping voids appear or valuable leases are broken
https://www.lse.co.uk/rns/PNS/interim-report-8211-six-months-ended-30-june-2020-94lf3dm30c8n5uv.html
Panther very much like RLE, a small opportunistic value seeking property company seeking to add value by asset management. Chairman's son is the CEO with a similar portfolio but more geographically diverse but with some more robust industrial
" Oh Mr Porter what shall I do ,I want to go to Birmingham and they're taking me on to Crewe"
The CEO waxes lyrical about the Commonwealth Games dividend for Brum .He can only hope some visitors alight the train at Crewe as yet more bad news emanating at the Market Square ,shopping centre at Crewe .
Pea****s who are a paying a 6 figure, £175,000 pa rent at Crewe.Lease expiring in Feb 2021 acc. to the tenancy schedule when they acquired this shopping centre investment in 2016 for a thumping £20m .
Https://www.jacksoncriss.co.uk/images/investments/pdf/1458812826_JC0082_Crewe%20Brochure_v10.pdf
The lease renewal to Pea****s there looks extremely doubtful on similar terms.More worryingly a distinct possibility that RLE are not even going to enjoy what's 'left of that income 'til then either .Yet another 6 figure rental in the portfolio under threat
https://www.bbc.co.uk/news/business-54477265
"Edinburgh Woollen Mill, owner of the Pea****s and Jaeger clothing brands, says it plans to appoint administrators in an attempt to save the business.
The move puts 21,000 jobs at risk amid what the company described as "brutal" trading conditions."
21st September CEO
‘We do not have any large property like department stores or SHOPPING CENTRES ,’ he said. ‘I hope [investors] fully realise our retail is very different and it has stayed open [during lockdown] and tenants have paid rent, and not gone bust.’
Not very different at all !
In denial this statement already wearing very thin as Brighthouse had already headed for administration. It seems from this statement he wishes that they didn't own Crewe and wind the clock back to before 2016 .The time the smart money heading out of shopping centres
Crewe the largest single asset in the portfolio with ever increasing voids .Not a very good purchase at all
Well ADV "I can't read the negativity because I blocked him," Then that sounds very much you are jumping to conclusions but by all means keep your head firmly buried in the sand and shoot the messenger on what is taking shape at the coalface
We have a situation at RLE where any bad news occurring is firmly buried .Its difficult times investors need to know both the good and the bad
What I certainly have a personal grudge against when investors are told blatant untruths liker RLE don't own any shopping centres when their largest asset in the portfolio is a shopping centre
I can't read the negativity because I blocked him, but I can see that the man with the personal grudge keeps on with his vendetta. Mr. Bassi should take legal action.
"We do not have any shopping centres," the CEO recently advised investors treating them like mushrooms
Wishful thinking as the unit occupied by Brighthouse comes back to Daddy
adding to the others Creative Retail are currently marketing .
Crewe Unit 6/7 Market Centre, 2,205 sq/ft Rent £80,000 pa
Crewe Unit 16/17 Market Centre, 2,860 sq.ft Rent £80,000 pa
Crewe Unit 18/19 Market Centre, 3,796 sq.ft Rent £100,000 pa
Crewe Unit 21 Market Centre, 835 sq.ft Rent £42,500 pa
There does seem to be a lot of negativity for RLE but over the last couple of weeks there are a lot more buys than sells, anyone any ideas?
It's a reverse form of alchemy.
How do you turn a high yielding investment into one producing a negative return ?
You buy one let to a single tenant on a short lease
Titan House officially on market .
https://www.bulleys.co.uk/titan-house-euston-park-telford-1286-p
This was inevitable as many developers been abusing PDR to create rabbit hutches.
Https://www.bdonline.co.uk/news/pd-rights-critics-claim-victory-after-space-standards-u-turn/5108243.article
Certainly brings into question the suitability and viability of many properties
Well Sept.quarter day has come and gone .The third payment day when tenants have been under stress .A step too far for many and difficult decisions to be made for some
One thing is for certain bad news doesn't exist at RLE .The Commonwealth Games and HS2 themes have been exhausted.T here is only so long you can beat this drum with tenants breaking leases and renegotiating rents in renewals
What is certain is the CEO will be spouting "permitted residential rights" as the saviour on the empty old spanners
CITYGATE HOUSE LEICESTER
Another Mississippi riverboat gambler purchase Bought In 2014 for £1.8m and they have enjoyed a healthy income from the SOS since
However unfortuantely the SOS have exercised their break clause so In April 2021 so Like Premier Inn at West Bromwich it reverts back to the landlord with a devestating loss of income
However all is not lost as 12 months they announced a sale at £2.6m yielding a decent profit Good news so far
"AIM-listed property investment firm Real Estate Investors is expected to complete the £2.6m sale of Citygate House in Leicester this month after a developer was given the green light to create 22 flats and 34 studios at the property.
Leicester City Council has granted Middlesex-based company Student Vault Management permisson to create the new residential development."
However yet to be announced whether they have got this over the line It's taking an awfully long time!
Here are their accounts
Https://beta.companieshouse.gov.uk/company/11339390/filing-history
Is the ball landing on black or red?
Unfortunately the current market tests the quality of a portfolio .Flouted as well balanced its now being exposed at anything but.
Some wildy speculative purchases have been made . They have been betting on black and the ball is landing on red
This is what the CEO has to say and you wonder why investors have lost some faith
citywire.co.uk/investment-trust-insider/news/midlands-reit-prepares-buyback-says-its-shares-are-best-property-deal/a1403370?ref=investment-trust-insider-latest-news-list
"We do not have any large property like department stores or shopping centres,’ he said
That is just totally untrue .Embarrassing.
Firstly they own a former BHS department store in Walsall which lay empty for some years and now let to a indoor market trader with little covenant so high risk
Secondly their largest single asset is the Market Centre Crewe where rental income has fallen off a cliff and increased vacancies
Both these properties have been downvalued in the latest valuation!
It gets worse .He then says
"The bit of the portfolio that’s done the best [this year] is anything that’s an essential service, like local retail, convenience stores, "
However in H1 which investors have not been informed their marquee convenience store operater Sainsburys broke their lease in Nottingham. RLE saying goodbye to £125,000 pa renal with a nigh on impossible task of replacing that income
He then says "Companies are more likely to consider regional offices post-Covid-19 but the demand will take ‘two-to-three years to cement’ as businesses cannot just ‘walk out of an office’.
That doesn't bode well for the 30k+empty Titan House at Telford where the lease to HP expires next month. Another large void
Yes -challenging times . Contracted revenue has fallen from H2 19 as total revenue was £17.7m pa last year but I guess it looks better compared with H1 19 in the results
So £9m worth of stock where open market value is close or above book ?
We of course never hear any bad news .The substantial loss of rent on Titan House impacts in H2 as well as tenants leaving in H1 where loss of rent has been temporarily obscured by dilapidations payments Further rent reductions on lease renewals and removal of break clauses
Unfortunately the small haircut on Book value which is referred to as "stable" is anything but in the market place where if some of the assets if tested investors will be in for a shock on what prices are achievable . Clearly they havent attributed any substantial loss in value in West Plaza to reflect the fact that Premier Inn have exercised a break
Seems to me that revenue for the year will be below £16.25 mpa
As for permitted residential value with the exception of St Pauls Square dont even got there
Under the circumstances.... a fantastic half year report, and continued dividend payments where much bigger companies have failed. Well done Mr.Bassi and the team.
Serious questions need to be raised about the purchase of the CEO's property West Plaza in 2016
First and foremost why did the company need yet another 70'/.80s building in West Bromwich when already stuffed to the gills with similar in the town? A building likely to be faced with high capex in the future to keep it sweet
The prospect of Premier Inn at the time of purchase in 2016 of exercsing their break clause 2021 was highly likely and then what a damage limitation exercise to look forward to .The position they find themselves in today
Premier inn had agreed to take a brand new spanker nearby and not only that had one just up the road at Black Lake
In addition Hinton Properties were already planning a Travelodge in West Bromwich
How many budget hotels does West Bromwich need?
This purchase should never have happened
The whacking £8m paid to the CEO's company is looking very expensive today Just pure damage limitation exercise to extract value
A huge loss of rent £311,000pa
Its quite clear who has ended up getting the best part of that deal . Disgraceful
Perhaps he would like to buy it back ?
The worst case scenario that has possibly happened has . Premier Inn have exercised a break clause to break their lease on West Bromwich shattering value .Goodnight Irene Quelle surprise !
Damage limitation exercise from here on in
Adv
Thank you for your concerns about my well being.
Maybe show your concern for those who have been suckered in here looking to cash in a few chips to venture into the High Street and look just beyond window gazing
Many faced with the prospect of taking a 100% hit on their investment at a time when they can least afford to should they need to raise some cash.
They have sat back and watch the story unfold read the RNS full of platitudes about the resilience and robustness of the portfolio.
Scratching their heads wondering why its devoid of industrial property as a safe haven during times like this
Watched as Directors cash in some juicy share awards the company having to pay a premium price in the market to satisfy them
Sat back and watched Director's family members employed ,personal property assets bought in by the company and personal estate agency services used enjoying lucrative fees in addition
Watching the fallout of a number of questionable high risk investments . Mississippi riverboat gambles where the bet is on read and its turned out black
It's Saturday for God's sake man, put your feet up and have a day off, or better still go and support your local high street. Being full of venom and hatred will only lead to high blood pressure, stress, strokes and heart attacks. Then you'll be a burden on the NHS, and we'll all be paying.
Https://bond-wolfe.com/wp-content/uploads/2017/04/Brook-Square-Rugeley-Investment-Details-2.pdf
I wonder if they are managing to shift some of the drier stock to demonstrate that the market is not quite moribund?
Small potatoes in the whole scheme of things but Bond Wolfe have been trying to sell this small retail investment in Rugeley for sometime with an asking tag of £950k
With the charity shop being on the market for nearly 2 years and the lease expiring tomorrow on the W H Smith providing the thick end of the total income it's hardly surprising there hasn't been many takers at anything close to that price
All very strange you would have thought they would have either renewed the lease by now and amended the details or be seeking a new tenant
I wonder if even the lovestruck Adv js getting disillusioned
New SP low today and time to stop burying all the bad news .Where are all the Non -Execs execs in this ?
Facts and figures required
APRIL
Trotting out fluffy statements like this when Sainsburys on their way out the door at the same time in a Nottingham neighbourhood with Bathstore in admin leaving just a small charity shop in occupation shattering its value
"Nationally, some neighbourhood and convenience stores (the subsector that underpins the retail element of our portfolio) have experienced a rise in trade during lockdown as they serve their communities, in the four weeks to 22 March 2020, sales have seen an increase of 45% on the same period in 2019 (according to the Sunday Times)."
What is happening with other break clauses and lease renewals at what rents ? Facts and figures please
W H Smith Rugeley lease ends next week
Halifax lease expires in Crewe at end of year
Has the break clauses for Premier Inn in W Brom and Npower in Oldbury now lapsed
Have the Pheonix company renewed Poundworlds lease at Crewe which has recently expired ?
Who has gone bust?
What has happened to the Travelodge rent at Hollywood
Whilst other propcos emerging from lockdown with an upward SP trajectory ,RLE in reverse
One of the primary reasons is that other property companies have invested wisely in the safe haven Industrial/ distribution sector
Much of it in the West Midlands ,the home of a thousand industries ,screws ,widgets,locks and fasteners The sounds of metal bashing deafening.
Alas RLE's property portfolio is almost totally devoid .I guess this is due to the fixation of utiliisng the services that Bond Wolfe offer who are lacking in this area .Missed out on valuable investment opportunities
Andrew Osborne must be gritting his teeth having had many successful years with other companies who were particularly active in the industrial and warehousing sector .Heh ho.
or maybe not so good news!
Https://www.retailgazette.co.uk/blog/2020/07/go-outdoors-creditors-to-recoup-just-1p-per-1-deloitte-says/
Oldbury ,Crewe Nottingham Telford.Redditch ,few in Walsall ,
The good news is that JD Sports have already stepped in to buy Xercise4 less from the administrator .lock stock and barrel so arguably RLE end up with a better covenant