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Yep, that seems to be the market view on this too. It must be exasperating for the CEO when the business is performing well, paying a decent (fully covered) dividend, paying down the debt to reduce gearing and yet the shares fall further behind NAV. IMHO fair value here would be c.45p but don't hold your breath waiting for it because the market is pricing in a crash and we all know it could happen. That's the game here, take it or leave it.
Nothing wrong in trying to reduce portfolio LTV below 40% .However breaking ng up parades and selling off anything to make a book profit is all very well including some of the crown jewels but does nothing to enhance the overall value of the portfolio Just get left with the dross
The sale of the Burger King at Crewe a case in point
Apart from lease renewals , some cap ex in a damage limitation exercise on Titan House very little asset managment taking place
They havent bought anything in a while despie some decent opportunites being available preferring to buy back shares
All these salaes just fat fees for Bond Wolfe
Jon/Paul, I think you've got all the information you need now:
- Dividend c. 9%, fully covered (I'm working on 3.25p for the year, rather than the 3.5p quoted on this site)
- Significant discount to NAV
- Debt reduction to reduce gearing whilst maintaining dividend
- Possibility of special dividend or share buy-back later in the year
FWIW, I've been adding recently and will look to sell a few at 40p if it gets back there, sentiment very much against this area of the market though so I'm not expecting to cash in any time soon.
As always the devil is in the detail
Retail investment values have been downgarded and they have been busy breaking the parades where the maj of ofproceeds will be appearing in H2
A great opp for Bond Wolfe agency and auctions to cream off fees
The big sale in H1 was thge BurgerKing in Crewe which sold well .Yet that ahs resulted in a loss of car parking income and a negative effect on the value of the reaminder of the Market Cente Crewe which is currently full of voids
Another classic Bassi
Contracted income £14m pa not actual received . Included in there is some hefty rent free periods and concessions
I wonder if Vine Hotels are paying any rent yet on West Plaza?
jonathb
I was looking to get into REITs, but have been generally uneasy with those connected to retail, and office space, as I think there will be an increase in vacancy.
I think at the moment health care and life science looks safer as a REIT, with high occupancy levels which are unlikely to decline.
There are a few to look at but personally I picked PHP in the end, but as I said there are a few to look at.
My portfolio was lacking REIT, and it was something I had meant to address for a while.
Ok
Company final results 2021.
DIV PS shown as 3.0625p
Pre tax profit £13.9m, against a loss of £20.2m the previous year. The 2021 profit included a £4.9m increase due to revised property valuations, and £1.2m in investment property sales.
There were also 15 disposals valued at £17.55m which will result in £977,852 in loss of rental income.
£11.9m in debt paid down from disposals.
NTA 58.8p
It does look cheap, I do like the NTA when compaired to the SP, but the loss in 2020 and the disposal of assets makes my uneasy.
I think for the moment its only one to watch for me, but I would welcome other views.
I agree this appears to be good value on paper, perhaps too good?
I've done some very brief research, but need to go through the last company reports to confirm the data from 3rd party websites, but so far preliminary (unquallified) data suggests.......
SP 34.5p (52 week low/high = 34.5p/42.75p)
PE 4.45
NAV 58.5p
EPS (Basic) 7.76p
Retained profit PS 4.1p
DIV PS 3.06p
DIV Cover 2.53
I can only assume these figures are in error, and the company report will show this up, because at the moment this looks like an unbelievable bargain.
Perhaps someone will be kind enough to enlighten me as to why this is so cheap.
Can someone illuminate? Their ER isn't much help. A transcript of the AGM might be handy, but I don't see it on their website. Maybe I'm missing something?
?
So this year a continuing progarme of shifting some of the more saleable individual shops as investments when there is a bit of length in a lease so perhaps put another £6m into the coffers with a small profit over current book .to come there on top of the Burger King sale
Walsall. Bearwood .and A****s Green and perhaps Kings Heath provding the ammo They have achieved a number of lettings of the vacant shops there .Nothing wrong with that
Having failed to add any new trading stock they are now relaint on just filling up empty space in attempt to regain value
However it.s no change at the big one in Crewe where unrecoverable service charge is eating into revenue They really can't afford to sit back without undertaking some new iniatives in an attempt to fill the huge voids .This really was a bad purchase and will be hanging around their neck like a millstone
According to Bond Wolfe's website they have the smaller of the 2 buidings at Oldbury under offer.Good news certainly but no doubt will come with a hefty rent free period and still the big loss of rent from Npower who occupied the larger one to fill l
Yes damage limitation exercise last year but rental income now diminished to £14.3mpa Cant see them being able to add much value to £190m unless they get Oldbury away
This year maybe another £12m in sales as they knock ou the shops at Bearwood Walsall and A****s Green but fast running out of tradeable stock unless they want to take a hit
Cash available but didnt buy anything
Herin lies the rub Bassi wears so many hats who gets first dibs at the tastiest morsels ?
Some classic Bassisms
Desperately trying to avoid stating that the rent achieved on the hotel at West Plaza was below that being paid by Premier Inn when he stuffed this one into the portfolio he trots this out at a "RENTAL LEVEL ABOVE INDEPENDENT VALUER ERV."
Congratulations to RLE on increasing the dividend. Yet again this share just keeps on giving. Would like to see a more proactive approach with regards adding to the portfolio and occupancy levels but overall well done to RLE.
Increased Dividend
Final dividend of 0.8125p per share, payable in April 2022 as a Property Income Distribution (PID)
Total fully covered dividend per share for 2021 of 3.0625p (FY 2020: 3p) up 2.08% and reflecting a yield of 7.90% based on a mid-market opening price of 38.75p on 21 March 2022
Total declared/paid to shareholders since commencement of dividend policy of £41.9 million
One bit of good news they will no doubt be reporting tomorrow is the sale of The Burger King investment in Crewe which is now in sol's hands where they were asking £1.35m Should imagine they will be making great play of that despite the fact that it's only partially mitigating the damage elsewhere in the centre where there is a swathe of empty units
In an attempt to clawback some value for Crewe they have put the Burger King on the market who will be paying £82,500pa on completion Hoping to get £1.35m which will be a nice result but really doesnt offset the voids or loss in value of the whole
Update shortly. As all the other REITs currently enjoying the fruits of their industrial property purchases which have outperformed all other sectors .RLE shreholders can only rue the fact that their BODS decided to go fishing in unchartered waters. Hooking the £20m whale the Market Centre Crewe which has jettsioned value ,stuffed full of expensive voids and will be a managemnet headache for many years to come .At least someone is making some management fees!
On a more positive note at least they got most of the valaution impairment into FY 20 .Be interesting to see if they have managed to reduce the dangerously high 49% LTV in FY21
What is for certain is that revenue has taken a big kicking in 2021 with loss of substantial rents from Npower, Premier inn Hewlett Packard and Aldi
Seems like only yesterday since the last dividend but here we are once more. Another healthy increase to the coffers and once again grateful to RLE for it's contribution. In my view this really is a welcome addition to any portfolio and generates a very decent return on investment. Continued good wishes to all investors, potential investors or those just monitoring this stock..
Have also added more RLE to the pension fund. Healthy 7.5% return is certainly putting some really decent monies in to the coffers. And dare I say it - Its dividend month fast approaching - 21 Jan 22 here we come again. Continued good wishes to all be you either investors, potential investors or those just reading.
Currently busy breaking up the retail portfolio in Bearwood ( now the Aldi has completed)" ,Walsall and A****s Green in order to book a small book profit where possible and put some money in the Tommy Couple of retail lets too
Nothing wrong with that and all nice investment sale fees for Bond Wolfe ! Once they are gone they are gone though
It looks as if they or a Bassi company as they havent reported it have bought the Moorlands Centre in Leek in the Allsopp's auction off a yield of 14% .Have to say whoever did they landed on their feet on that one .Former Co op store which got reconfigured in 2001 ,anchored by a Wilko Rents have gone down and you would have paid 8% for that only a few years back
Pea****s are exiting but nevertheless off that yield all risks catered for
However unfortunately it doesnt put the Market Centre in a good light .The flawed jewel in the crown Wouldn't be surprised if the value of that has now depthcharged well below £13 m even taking on board the Burger King deal.
If you look on the letting agents Creative Retail site they have a cluster of units to let.Ouch
With 2 empty Oldbury buildings,the upper floors at TItan House to let and no doubt a long rent free period on the old Premier Inn at West Plaza A big chunk of space at Peat House Lecister too it's fair to say revenue has taken a big kicking
I wonder what rent they are actually receiving from the indoor market at Walsall
No rent from Aldi anymore either
So they can only play the cards in hand .Still not a particuarly attractive point with interest rates heading up and threats of lockdowns
Have also added the last couple of weeks. One has to be patient with the low liquidity....
Just added another 5000 @39p for my Xmas Treat.
Think you have strayed onto the wrong board .Very unlikely Kevin M cgrath would be hauling up here as Chairman let alone buying any shares
And it gets even better -
The Company announces that Katherine McGrath, PCA of Chairman (Mr Kevin McGrath) purchased 24,971 Ordinary Shares in the Company on 1 November 2021 at a price of £0.8797p per share.
The Company announces that Kevin McGrath, Independent Non-Executive Chairman of the Company purchased 24,971 Ordinary Shares in the Company on 1 November 2021 at a price of £0.8797p per share.
That's almost £22000 of his own money. Confidence in the company.
Q4 will get the full impact of all the voids ,unrecoverable service charges .The Market Centre Crewe the company's main asset raely getsmentioned Shareholders are kept in the dark of the full impact on revenue of the voids,service charges Just a quick viewt hrough Jackson Crissand Creative Retial its diffcilut to establish how many are up for grabs
What is certain is that some newinitaives are needed to breathe in some life here
Well once again dividend day comes and goes and is really great in my opinion. A dividend is good but when it is excess of 7% then that is absolutely brilliant and this really must catch the attention of investors. I appreciate some people are more concerned with other aspects of the books but for me I bought in at a price I liked, I am receiving a great return on my investment and I just think RLE are one for anyone's portfolio if you like a decent return. When interest rates are still so low it makes sense (in my opinion) to look at obtaining a decent return. This is a share to give you all a very decent return if that is what you are seeking. Regards to all investors and those considering getting in to this share.