Member Info for 67Sam

"less shares means smaller dividend payment on the next dividend payout"
If the amount of profit distributed remained equal then dividend per share would increase proportionately with the reduction in number of shares in issue.

https://www.theguardian.com/business/2022/dec/11/bank-of-england-set-to-spoil-the-festive-mood-with-another-interest-rate-rise

"I have a rabid hatred of authority" sorry to hear that and thanks for clear answer.
Can't see why they need to share anything other than your anonymised data and I wouldn't answer to cold callers either. Must have been targeting your postcode I guess.

" he was not at the premises for long."
Gaz, do you think ONS surveys aren't telling us anything useful? Or did you think it was fraud?
Just curious, not critical; no-one has to take part in them if they don't want to.

Ownership doesn't guarantee profit, but theres no profit to be had without ownership.
Increasing your ownership will proportionately increase the income you receive, from any profit made.
Whats the problem with that?

"These are shares that Lloyds receive money for."
No idea how it works; had assumed staff benefit was a performance related opportunity to buy at less than market value.
Good to remember they get income for it, I hadn't. But confidence must rest on being able to maintain successive reductions year on year in the number of shares in issue through buybacks. Otherwise it will be like just treading water, at the expense of making extra acquisitions or giving special dividends.

carllt
"paying dead money rent"
You might think it was good money if your transient and want to obtain a fixed, short term price for housing.

ff
"Why all those new shares? Do we need more?"
A good question that I have also asked and still feel ambivalent about. No, I'd prefer all expenses relating to staffing are included in that years costs; but yeah, Lloyds need to have staff that can invest in their own company to have more chance of retaining them in a competitive sector.
Regular new share issues dilute the effect of buybacks. So I would be hopeful this years programme is repeated in 2023, while the share price is still low.
And that it is maintained in the future subject to a progressive and sustainable dividend. So far that seems to be the Boards rhetoric, so still I feel positive about holding.

"Grenfell Tower Enquiry".
Inquiry.

"Go big or go home as they say.."
I imagine they wouldn't have said that at the Grenfell Tower Enquiry.

"Govt failed to follow its own guidance re a pandemic"
Poor governance
"Lloyds is not without some expertise in this field"
It has recently employed a handful of people with letting experience. It has no previous.
"Does it keep spending it on buybacks? extra dividends or expanding its businesses portfolio?"
Id choose the first and last, others here would like all three.
"how much gorilla glue you use"
where?

"Trouble with this country no can do mentality."
Best to thoroughly understand the problem before you embark on a solution. Ambition with no evaluation is a risk. Poor governance of new undertakings is a major risk. All these things were demonstrated in the UK's can do response to the pandemic.

"you’d be a complete idiot"
Lacking the means to purchase, not an idiot.

T
"buying Graingers management team and experience"
They would get the staff who decide to be TUPE'd across to LBG. You would lose anyone who opted for early retirement or managed to get a more senior job elsewhere in the sector. Its a competitive sector and if staff aren't confident in their employers competence they will leave.
LBG don't have a spotless record of putting customers first. CITRA don't seem to me to present that well yet. People move house more often than they change bank accounts, so it would be a mistake to assume customer or staff loyalty. Let's wait and see how they manage to resolve new build snag lists, operate lettings, collect rent and organise repairs in their first 1000 units.
I support the venture but am aware it comes with many risks; one of them is overconfidence.

T
"I would have liked them to have looked at a takeover of say Grainger to accelerate their plans"
Planning to expand a portfolio twelvefold before demonstrating competence as a landlord for more than eighteen months is a slightly arrogant target from LBG. I don't believe they could do this without purchasing another company. It would put the wind up me if I was a Grainger tenant and was suddenly told LBG was taking over.

"Easier said than done."
Opt in question on the tenancy application:
"May we contact you about other LBG products?"
Throw in discounts for tenants and it might work very well.

"What is not too like?"
For me, not much except corporate landlord inexperience coupled with very big expansion plans between 22 and 25.
It is a fair degree of risk but also a fair degree of possible success - if they perform good property management.
And if they make sure their tenants get targeted with other LBG products or preferential offers.

first posted 5/11
• 7/21 Established to “improve access to good quality and sustainable rental housing” in the context of an emerging “Suburban Build to Rent market”.
• 8/21 Announces strategic partnership with Barrett “to work together on a site-by-site basis to develop incremental housing stock for the rental market, with a focus on the environmental standards of properties”.
• 9/21 Announces £300M fund with Homes England.
• Citra Living will complete initial purchases but hopes to build the bulk of its portfolio through partnerships to develop new sites from scratch.
• 12/21 initial budget of £250M rumoured to be increased to £1B
• aim for 400 units owned and let by end of 2021
• aim for 800 units owned and let by end of 2022
• aim for 10,000 units owned and let by end of 2025
• aim for 50,00 units owned and let by end of 2030 *(Equivalent to about 1% of UK’s rental housing stock).
• The 4.4m households in England’s private rented sector are owned by 2.3m landlords
• Operators talk of 10,000 units being the level at which economies of scale kick in, but no private landlords have yet attained that in the UK.
• Grainger is currently the largest UK private landlord with 9,100 units worth approximately £2.1B
• Clarion is the largest UK Housing Association with 125,000 units and plans to increase by 50,000 units in the next ten years.

Reported CITRA Purchases:
• Nene Wharf, Flettons Quay, Peterborough 45 units completed by GRE - let
• Riverside Park, Ashford, Kent 110 units completed by GRE - let
• Ladden Garden Village, Bristol 150 units planned - Barratt 22/23
• Cramlington, Newcastle 58 units completed – let
• Wixams, Bedfordshire 66 units planned - Barratt 23/24

Annual Review 2021 – “Citra Living will form part of Lloyd’s approach to the decarbonisation of housing, focusing on buying and renting energy efficient properties, helping to reduce the environmental impact of the UK’s housing stock and contributing to the UK’s overall net zero goals. The Board was pleased that Citra Living was able to build on the Group’s existing support for the housing market, while also contributing to the Group’s environmental ambitions”.
My view is there must be an under reporting of purchases, or, for whatever reasons, they are not committing to the early level of expansion as originally expected.

"not building homes...."
making partnerships that provide finance for developers to build new homes

lloyds capital in citra will help bring forward new housing starts, so they will add to the much needed supply for working people.
It has no social housing aspirations and it certainly wont buy foreclosures on existing properties, usually referred to as repossessions.
It has made a modest start and has a few units already tenanted.