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Started: Krustysmegma, 23 May 2024 09:31
Last post: Krustysmegma, 28 May 2024 09:41
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.
Started: saintly, 26 Apr 2024 08:52
Last post: saintly, 1 May 2024 12:24
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
Started: Krustysmegma, 29 Jan 2024 08:33
Last post: ScandiExpat, 31 Jan 2024 19:39
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
Started: ScandiExpat, 11 Dec 2023 16:03
Last post: ScandiExpat, 11 Dec 2023 16:03
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.
Started: sain@vision, 8 Nov 2023 06:35
Last post: sain@vision, 8 Nov 2023 06:37
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
Started: saintly, 27 Oct 2023 08:27
Last post: Krustysmegma, 2 Nov 2023 23:25
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
Started: sain@vision, 25 Sep 2023 07:32
Last post: sain@vision, 25 Sep 2023 16:48
"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
Started: sain@vision, 19 Sep 2023 13:12
Last post: sain@vision, 19 Sep 2023 13:12
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 ?
Started: ScandiExpat, 15 Sep 2023 10:38
Last post: ScandiExpat, 15 Sep 2023 10:38
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!
Started: saintly, 28 Jul 2023 07:18
Last post: saintly, 1 Aug 2023 13:31
Krusty - Fully appreciate your point in how the share price has reduced over x period. I am fortunate in that I have a low average so happy to continue here and indeed am going to be topping up very shortly. Until October!!!! Good luck with your investments in the meantime. Rgds S
Well if you'd invested 5 years ago you'd only have half your money left now, so it hasn't been a great long-term investment. However, now they've slashed the dividend payment to a level that's fully covered and at this stage of the investment cycle, I think there's a pretty good chance of better things ahead for RLE. I'll be hanging on to the shares I didn't sell after the cut in the dividend, and may even add a few at this level. See you in October for the next divi saintly.
Well here we are once again on dividend day. Where is the time going as it seems like only a very short time since the last dividend. Monies are already in my accounts so thank you RLE for your contributions. On a serious note though this has to be one for anyone who is looking for a very decent return. If you were to buy in to RLE at this price (30p) then the dividend return is eye watering. Continued good fortune to all who hold RLE, are considering buying in or those just watching. Really pleased to have this company in my portfolio. Rgds S
Started: saintly, 28 Apr 2023 09:52
Last post: saintly, 28 Apr 2023 09:52
Well here we are once again on yet another dividend day. Monies in all accounts already and gratefully received as always. When it comes to generating a decent dividend return, and not to mention 4 times a year, what is not to like. As always continued good fortune to all RLE investors, potential investors or those just watching this share. May your gains always exceed your losses. Rgds S
Started: Krustysmegma, 4 Apr 2023 11:42
Last post: Krustysmegma, 4 Apr 2023 11:42
Lots of institutional buying this week, perhaps they know something I don't.
Started: sain@vision, 31 Mar 2023 15:02
Last post: sain@vision, 31 Mar 2023 15:02
Good news reported on Redditch with the new supermarket trading well
No takers for the Wetherspoons yet though where at least the rent of £97.500pa will be paid until lease expiry in March 2024
https://search.savills.com/property-detail/gb0456l118527
The best they can hope for is someone pops their head up during the marketing campaign and perhaps be willing to pay £50,000pa
Started: sain@vision, 30 Mar 2023 09:56
Last post: sain@vision, 30 Mar 2023 09:56
"You couldn't wish for a more honest company"
Still none the wiser
CREWE
As it's only good or bland news reported its an impossible task trying to asses the value or income . The best they can offer is the car park income is resilient failing of course to flag up to investors this will be due for a sharp haircut when the site for the Burger King changes hands
We dont know what rents have been agreed on lease renewals or new lettings in order that we can get a feel of the tone or told how much of the service charges are non recoverable and whether or not that is likely to increase?
https://www.cheshire-live.co.uk/news/chester-cheshire-news/high-street-chains-shunning-crewe-26553270
Sure there is always info which is commercially sensituve but RLE go to opposite extremes
Is it because Bassi ego won't allow him to admit he has bought a pup .
Started: sain@vision, 28 Mar 2023 08:45
Last post: sain@vision, 29 Mar 2023 18:16
Yes I hadnt read the full text before commenting so yes amazing Crewe features as there has been a bit of positve activity which is if course is good to hear.
Perhaps they have increased its book value on the strength of it ? Whether the new lettings will involve some lengthy rent free periods agreed below current rents or whether the service charges will be capped . in usual style this remains firmly buried
On one hand they highlighed the fact that the car parking revenue is resilent whether that is above or below the revenue when first acquired we only have to guess
However this revenue in the future will take a big haircut when they start on site to build the Burger King but lets not mention that
A little strange this has taken sometime to get going as the agents had announced the resultant investment was under offer last Spring?
Still plenty of voids to fill though and with further leases expiring this is going to take some sterling efforts to get it remotely back on track
CAP EX
One major concern is the portfolio of ageing stock Stuffed fullof 70/80s kit in W Bromwich where they will be hit by cap ex to bring them up to speed which wont be fully recoverable by way of service charge
Impacting both on capital value and revenue
As expected, another attack on REI from the resident non-shareholder(s).
You couldn't wish for a more honest company.
Regional is down from 100p at float to 56p today. Great company !
REI was 44p in 2013, it's 29p. now. Without bothering to check I'd say it has paid it's price in dividends during that time.
Regional has a market cap of £292 million. Real Estates is a minnow at £49 million.
Dividend Cut ? Wasn't that all explained in the last quarters update ?
Now we have directors buying, talk of more buy backs, possible cash return to investors ?
Crewe never gets a mention - There is a whole section on Crewe ! How easy it is to not see what you aren't looking for.
QUOTE*****Crewe - The former Argos unit became vacant after the store consolidated to the local Sainsburys and we are now under offer to a national occupier for the ground floor of this unit. Additionally, we are in solicitors' hands for a new lease agreement to Bodycare to take the former Clinton Cards unit with anticipated opening during the summer. We currently have two vacancies in the indoor mall which occurred after Christmas, but we are working hard to find occupiers, with ongoing interest. We have agreed to sell the consented new drive thru land in the rear car park to a well-known fast-food operator and once completed we feel that this will have a very positive effect on the scheme. Parking revenue has been resilient and we have recently renewed our parking contract with an operator which includes brand new parking machines and improved car park signage.
A top up here for me today. Now I am off to find another source of share price information, where hopefully people don't try and destroy companies just to amuse themselves. Over and Out.
Interesting to compare the miserable results here with the year-end at RGL (also released today). No dividend cut, no forced disposals to pay down debt, just a strong set of numbers and fully-covered dividend yielding over 10% currently. We can but dream over here.
Looks like the larger of the Oldbury office buildings is away to a Gov't department which would account for a big chunk of that income in solictors hands( £400kpa ) and a few more floors at Telford
Assuming there is a bit of length in the lease at Oldbury that will certainly put the wheels back on the bike on its investment value with a 7 figure enhancement I wonder how much of that valaution increase has already been reflected in the portfolio value uplift notified ?
The constant referral to "contracted income"in usual style does inducate there is plenty of rent free deals floating around
Again the elephant in the room Crewe never gets a mention
despite it being the largest asset and full of voids. Maybe it just might go away
It's a big welcome back to the dividend traders. Top of my leader board this morning. Don't forget to let us know when you leave.
Started: Krustysmegma, 16 Feb 2023 16:29
Last post: Krustysmegma, 16 Feb 2023 23:12
Sorry Scandi, just type in HOME in the search box above and have a look at Home REIT. The share was suspended last month after they were only able to collect about 20% of the rents due in December. They are also investigating potential wrongdoing (which usually means suspected fraud). Very different to the investment here, but sometimes mud can stick and give other REIT's a bad name. In the mean time, back into the 30's here which is good news. There was a big sell reported this morning so hopefully now that's cleared we can make some progress on bridging the gap to the NAV.
Hope that makes more sense. K
What do you mean? Am foreign investor and not as familiar with the news...
What a mess at HOME REIT! Looks like someone has been selling their holding here in response. Now that's cleared, things seem to be picking up a bit - let's hope it continues! Still a big gap to the NAV.
Started: sain@vision, 30 Jan 2023 04:20
Last post: sain@vision, 30 Jan 2023 04:20
I suspect the acquisition pf the Market Centre Crewe in 2016 wasn't the main motivation for most investors for parking their money here. Stretching way outside their skillsets chasing yield .They have caught a cropper probably .dropped over £5m in value since purchase
Break up potential limited at Crewe to jettisoning the Burger King in the car park which has had a negative impact on the overall value of the remainder. They could conceivably split the covered shop area and the outlier larger retail stores but there are significant unrecoverable service charges
This is now a heavy management burden for years to come .
All that good work farming the area around Colmore Row undone
On a more positive note they are getting stuck into breaking up the individual shops at Leamington Spa which they should exit out with a book profit .
Started: sain@vision, 19 Jan 2023 15:17
Last post: Krustysmegma, 20 Jan 2023 16:14
I'm not sure a candle shop in Crewe Market Shopping Centre was my main motivation for investing here, but it's obviously sad news for the people directly involved. People moaning about shops closing when they're clearly not spending money there is an all-too-familiar story though. You might even say they're beginning to get on my wick...
Despite it being the largest asset in the portfolio there is never much comment about Crewe You would have thought bearing in mind their "asset mangement "capabilities they might have some interesting ideas how to inject some life into it
A much-loved shop in a Cheshire shopping centre has confirmed its closure, leaving heartbroken customers 'devastated'. The Candle Shop, based in Crewe's Market Shopping Centre, announced that the business will no longer be trading from the premises.
A statement posted on social media blamed the decision on the 'current retail climate' and 'high energy costs' which have made the store 'untenable'.
There is no such thing as bad news at RLE
Thanks K. Lets remain optimistic and keep everything crossed!!!!!!
Good luck to you too saintly. Personally I don't think there's a cat in hell's chance of a decent rise here but you never know how things are going to work out, so who knows? Perhaps someone will come in with a takeover offer at or close to the NAV?? Sooner or later the value has to come out.
Here is hoping that 2023 see's a steady but decent rise in share price. Not going to set targets but I would like to see a decent rise for RLE. Continued good luck to all on this board be you investors, potential investors or those just watching. Good luck and success to one and all. Per ardua ad astra!!!! Rgds Saintly
Started: Krustysmegma, 22 Dec 2022 09:00
Last post: Krustysmegma, 22 Dec 2022 09:00
VSL has announced this morning that it is proposing winding down. Wish it had been RLE instead.
Started: sain@vision, 14 Dec 2022 10:23
Last post: sain@vision, 14 Dec 2022 10:23
The recent lettings of a floor at at Titan House and Birchfield House would have been accomapnied no doubt with lengthy rent free periods and/or capital inducements
Forsome reason best known to themselves I guess because they consider it to be perceived negatively rarely mentions the details.
So the £384,00 pa they refer to as"contracted income" won't be actually receivable for sometime so cashflow is a little tight.
Again we arent given any detrails on the letting on Birchfield House which fair play is a result.If it's been let to a half decent covenant with some years on the lease without break this could have added a significnat uplifyt to its value perhaps 7 figures
Just guessing as usual because there is no transparency !
Started: Krustysmegma, 13 Dec 2022 10:38
Last post: ScandiExpat, 13 Dec 2022 21:34
When a company states "The Company will maintain flexibility when considering all future options including a return of capital, special dividend to shareholders or further share buybacks, with the view to maximising shareholder returns", after the share price has halved in a decade, it is probably not advised to double up but actually cut exposure. This company feels like a job enrichment scheme for the management as opposed to a solid investment for shareholders.
I don't understand why directors have been buying at 28p, then slash the dividend? Makes no sense to me!
It's tough out there. It's ironic I am less negative than you Krusty
Well from a property perspective in a challenging market they have had a satisfactory year. They have got LTVs down below that important threshold of 40%
This augurs well for any future loan negotiations
They have some cash to buy a building or 2 and managed to get away 1 of the old chestnuts at Oldbury
The value of this would have received a huge haircut with vacant possession so any letting even with a lenghty rent free adds a considerable upside
They have done well to get that away
Any lettngs recently elsewhere (Titan House) would have been accompanied with a hefty rent free hence the referral to "contracted income"so its going to be some time before these go cash positive
This is unravelling rapidly. Shareholders have endured months of value dilution through the sp dropping (nearly 25% in the last 9 months), now the dividend has been cut by almost half. Quarter 3 dividend of 0.4375p compared with previous 2 quarters of 0.8125, reducing the f.y. yield from 3.25p to 2.5p. Expected dividend for 2023 also reduced to 2.5p. More disposals planned which, once the debt has been payed down, can only reduce the amount available for shareholders.
I've sold some this morning and will sell down the remainder over time. Sad day, but better to take a small loss than continue to see an investment dwindle away. GLA. K
Started: sain@vision, 13 Dec 2022 07:55
Last post: sain@vision, 13 Dec 2022 07:55
Yes they have done well to get that LTV below 40% ,.some decent sales and confirmation of some damage limitation in getting Birchfield House away after all these years
Should think the market will look at this favourably
Just the hefty Birch House to get shot off at Oldbury
In usual Bassi style light on the information about the terms of the deal on Birchfield House ,rent .rent free etc,length of lease in order to get a stab on its valueThe phrase "contrarcted income"indicating probably alenghty rent freeperiod involved as you would expect in today's market
The value of Birchfield House would have been writen right down so should be abe to book a decent profit on this
They need to formulate some sort of plan to reduce the voids at Crewe Never any mention about the Market Centre
Maybe use some of that cash to buy some new kit
Started: sain@vision, 6 Dec 2022 08:01
Last post: sain@vision, 6 Dec 2022 08:01
Bassi and Daly taking the opportunity to pick up the share dump by M&G An institutrional investor with a wealth of property knowledge.
This year has been a successful exercise in dismantling the retail parades at A****s Green, Bearwood and Kings Heath and are now settting to on Leamington Spa which will have helped keep the banks happy and some reduction in LTVs
Some decent fees being earned by Bond Wolfe.
They are now geting busy on the office portfolio which will prove to be a little more difficult .Filling some of the voids will of course assist on that.
Birchfield House at Oldbury one of the 2 empty office buidings at Oldbury has been under offer for some months. It will be very welcome getting one of these old chestnuts away.
Titan Hiouse Telford The lease to Hewlett Packard expired over 2 years ago Since then they have got the ground floor away and recently the 3rd floor has gone under offer They will be keen to get this over the line which leave the other 2 floors to let
Another dice roll purchase which has backfired.
There is never any mention of course about the ailing Market Centre Crewe or any initiatives needed to address the voids
They haven't acquired any new stock for years .All sorts of opportunites will be presenting themselves lets hope they have a decent enough warchest to take advantage