Member Info for SD235

Nobrain

Did your mummy wipe her hand on your trousers!?

CarpeDiem1

With SUPR such low risk (based on past performance) I expect it to go to a premium first and from there start to expand by selling shares at a premium.

The only thing holding them back at the moment is the extreme discounts available.

Nobrain

Unlike your mother who will no doubt hold something else.

Nobrain

"Like I said Axe - it's gone waaaaay over your head - never mind - as they say, you don't know what you don't know. Not your fault - I guess you were sent to some crappy comprehensive school eh? LoL"

what a nasty snob. Your parents must have been very abusive, hopefully only verbally but I have my doubts.

An example of actual low risk REIT is probably SUPR supermarket Income REIT.

100% rent collection from day one.

8% dividend rising every year (last 5 years) not quite fully covered.

BUT only 16% discount.

If this traded at present NAV the dividend would be 6.8%. Hardly unreasonable.

Note I own SOHO SUPR and RESI. SOHO is my largest holding

NAV 129p

Share price 62.6

Discount 52.15%

Dividend 5.46p

Dividend based on NAV equals 4.26%

Would you pay NAV for 4.26% ? Remember the NAV is supposed to reflect the present gilt returns (the discount rate). As this investment is clearly not a low risk investment then I don't see any chance of this hitting NAV.

If/when interest rates fall the discount rate will fall and the NAV will rise. So my personal opinion is this should never trade at NAV.

That's not say its not a bargain, it is but NOT the bargain the discount to NAV suggests.

Clearly the market is underwhelmed by this announcement. Probably because Westmoreland isn't required to pay the full rent immediately.

In fact after one year it may still only be paying 90% of rent. Of course that's better than Parasols at 60%.

Best to look on the good side. IE I am up 11% on 9.45% dividend!

"The transfer completed on 19 August and, up to the point of transfer, Parasol continued to pay rent in accordance with the existing creditor's agreement, being 60% of full lease rent. Following the completion of the transfer, we expect rent collection to increase to between 75% to 85% of existing FRI lease rent during an initial stabilisation period (expected to last approximately 12 months), and thereafter up to at least 90% of existing FRI lease rent. In turn, this will help ensure that dividends paid by the Company are fully covered."

New peak after some falls

£31.98 I started buying at £11.07

Sold lots but still my biggest holding in my ISA.

I will try Not to sell again till it passes £40.

Lots of buyers coming in.

Milkwood 8%

Second Liontrust bought 4.5% 15th August

And today Almitas Capital (a US company) bought 4.2%

Note Aviva PLC sold 7.92% of the shares on the 23rd July.

Way back Oakbloke clearly stated that DEC should reduce the dividend and increase debt payments. Simply because the excellent dividend was simply not doing the share price any good.

When they reduced I bought.

DEC don't own the land they own the right to the oil under it.

I haven't read the article yet but it starts with link to....this forum!!

https://theoakbloke.substack.com/p/diversified-to-the-joke-bloke?utm_source=post-email-title&publication_id=1859293&post_id=147817761&utm_campaign=email-post-title&isFreemail=true&r=35hz0d&triedRedirect=true&utm_medium=email

And a reduction in fees.

Gresham house is a possible.

They charge 1% at RESI.

0.5% of NAV and 0.5% of share price.

Fair in my opinion

Https://theoakbloke.substack.com/p/dec-ent-more-than-decent?utm_source=post-email-title&publication_id=1859293&post_id=147734174&utm_campaign=email-post-title&isFreemail=true&r=35hz0d&triedRedirect=true&utm_medium=email

Economies of scale should reduce costs often by telling the managers they will have to take a reduction in assets over a certain price.

Yes it probably is better to spend on buybacks. But that last purchase was an excellent price.

6.3% starting yeild borrowing at 4.4% for 7 years.

Https://theoakbloke.substack.com/p/can-you-be-crazy-on-resi?utm_source=post-email-title&publication_id=1859293&post_id=147103147&utm_campaign=email-post-title&isFreemail=true&r=35hz0d&triedRedirect=true&utm_medium=email

R e s i up 6.25% today. See write up by oak bloke.

This has been a long drawn out affair BUT virtually all owed money being returned. A lot of cash a lot of cash drag!

See rns

Not certainty could merge with impax

See Quoteddata on YouTube

" The Notes have a maturity of seven years and a fixed rate coupon of 4.44%."

I would have my doubts that a revolve credit facility will be available at that intersest rate within the next 3 years.

I expect sonia to fall to 3% in the next 2 years. I doubt the extra will be any less than 1.44%.

Looking at the rest of the loans, the intersest rates are extremely low, which implies this is very low risk investment.