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Regional REIT.

OldPlodder
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Re: Regional REIT.

#360805

Postby OldPlodder » November 28th, 2020, 10:29 am

richfool wrote:
ReallyVeryFoolish wrote:Hmm, the recent and welcome revaluation of RGL seems to have come off it's tracks today. Down nearly 8 per cent. It went ex dividend over a week ago so nothing to do with that. Nothing I can see in the news. Perhaps just a buying opportunity if anyone wants to top up on this stock. Hopefully the revaluation here will resume shortly. Still too cheap. Dividend looks pretty safe.

RVF

Yes, it's 6% more down than SLI today (7.75% in total, versus SLI's 1.78% down), so it must be something peculiar to RGL. I couldn't find any company news or announcements today, though Arcadia Group has collapsed, - whether there is any connection there?


The only RNS I can find which might have dampened things a bit, was on 12/11, hence not really recent enough to be the cause, the relevant extract being:

Q3 2020 Dividend Declaration

As previously indicated, the Company is pleased to declare that it will pay a dividend of 1.50 pence per share ("pps") for the period 1 July 2020 to 30 September 2020, (1 July 2019 to 30 September 2019: 1.90pps). The dividend payment will be made on 8 January 2021 to shareholders on the register as at 20 November 2020. The ex-dividend date will be 19 November 2020. The entire dividend will be paid as a REIT property income distribution ("PID").

Further to the announcement made on the 17 September 2020, the Board will pay a dividend of 6.4pps for the full year 2020, which it is expected will be fully covered from EPRA earnings, and equates to an annualised dividend yield of 8.3% at the close of 11 November 2020.


This means that the Q4 financial 2020 payment will also be 1.5p(making it 1.9p and three 1.5p over Fin. 2020), whereas normally it is higher than the other three quarterly payments.

At this new overall level of 6.4p, the board clearly think that the Divi should be sustainable. Hence the SP drop is strange considering what they are invested into.

Plodder

Disc: I don't hold, but my wife has a smallish holding in her ISA, which she will top up next week. (So far, at portfolio level, on a rolling year basis, in our ISAs, I have not had any divi cut, in fact a small increase(and roughly 80% of that Divi income funds our income needs), and she has only seen a 2.7% reduction, (and that Income is not required for our income needs anyway, and not likely to be).

ReallyVeryFoolish
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Re: Regional REIT.

#360810

Postby ReallyVeryFoolish » November 28th, 2020, 10:39 am

Given the ongoing high level of rental collections, I think the dividend is likely to be more than sustainable. I consider RGL management to be amongst the best out there, I imagine they're being pretty conservative on dividends until the worst of the covid upset dies away. Perhaps we can look forward to a growing dividend again from RGL later in 2021.

RVF

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Re: Regional REIT.

#360887

Postby shetland » November 28th, 2020, 2:57 pm

The fall might have something to do with govt announcement that RPI will no longer be used for index linked gilts. Instead they will link to CPIH which is always a lot lower. Many rental agreements have rises linked to RPI which might now be linked to CPIH

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Re: Regional REIT.

#360893

Postby ReallyVeryFoolish » November 28th, 2020, 3:12 pm

shetland wrote:The fall might have something to do with govt announcement that RPI will no longer be used for index linked gilts. Instead they will link to CPIH which is always a lot lower. Many rental agreements have rises linked to RPI which might now be linked to CPIH

But not till 2030, if I understand correctly?

RVF

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Re: Regional REIT.

#361040

Postby shetland » November 28th, 2020, 10:34 pm

Correct

But I can’t think of any other reason why the shares would fall so much.

Can you ?

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Re: Regional REIT.

#361049

Postby Spet0789 » November 28th, 2020, 11:07 pm

shetland wrote:The fall might have something to do with govt announcement that RPI will no longer be used for index linked gilts. Instead they will link to CPIH which is always a lot lower. Many rental agreements have rises linked to RPI which might now be linked to CPIH


Very few of RGL’s leases run to 2030 (WAULT < 4yrs) so I’m pretty sure this had nothing to do with it. Also, the RPI announcement took place on Wednesday IIRC.

As I have said before, it was probably just a chunky position being sold in an illiquid stock on a quiet day. No need to spend hours reading tea-leaves to look for meaning!

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Re: Regional REIT.

#403820

Postby airbus330 » April 13th, 2021, 10:47 am

Nice to see RGL ticking up over 80 and holding. Hopeful for the future!

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Re: Regional REIT.

#403827

Postby Spet0789 » April 13th, 2021, 11:14 am

airbus330 wrote:Nice to see RGL ticking up over 80 and holding. Hopeful for the future!


FT reports that Goldman Sachs opening up an office for 500 people in Birmingham.

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Re: Regional REIT.

#403950

Postby airbus330 » April 13th, 2021, 4:55 pm

Spet0789 wrote:
airbus330 wrote:Nice to see RGL ticking up over 80 and holding. Hopeful for the future!


FT reports that Goldman Sachs opening up an office for 500 people in Birmingham.


Interesting and led to 30mins of educational articles on the continued expansion of Brum, which is good for RGL, although no direct benefit from the GS move unfortunately. Sign of the new rush for space around us. Wish I owned a house in Richmond-upon-Thames!

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Re: Regional REIT.

#403960

Postby Spet0789 » April 13th, 2021, 5:09 pm

airbus330 wrote:
Spet0789 wrote:
airbus330 wrote:Nice to see RGL ticking up over 80 and holding. Hopeful for the future!


FT reports that Goldman Sachs opening up an office for 500 people in Birmingham.


Interesting and led to 30mins of educational articles on the continued expansion of Brum, which is good for RGL, although no direct benefit from the GS move unfortunately. Sign of the new rush for space around us. Wish I owned a house in Richmond-upon-Thames!


I see offices in smaller cities (basically those other than London) as being given a helping hand (relatively speaking) by the improvements in remote working. Personally I know a number of people looking to move from London to Cambridge / Bristol / Manchester...

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Re: Regional REIT.

#409211

Postby Spet0789 » May 4th, 2021, 11:41 am

Having bought at 61p, my wife sold 25% of her RGL at 86.3p today. Happy with the performance and happy to hold on to the rest but it was a large position! Around 7% of our liquid net worth, now 5%.

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Re: Regional REIT.

#409222

Postby ReallyVeryFoolish » May 4th, 2021, 12:48 pm

Spet0789 wrote:Having bought at 61p, my wife sold 25% of her RGL at 86.3p today. Happy with the performance and happy to hold on to the rest but it was a large position! Around 7% of our liquid net worth, now 5%.

That was an absolute bargain. And the income from the shares you still hold will be excellent too. I have too many RGL but they were bought prior to covid. Still holding them and looking forward to the income stream once I start my drawdown.

RVF

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Re: Regional REIT.

#409226

Postby Spet0789 » May 4th, 2021, 1:00 pm

ReallyVeryFoolish wrote:
Spet0789 wrote:Having bought at 61p, my wife sold 25% of her RGL at 86.3p today. Happy with the performance and happy to hold on to the rest but it was a large position! Around 7% of our liquid net worth, now 5%.

That was an absolute bargain. And the income from the shares you still hold will be excellent too. I have too many RGL but they were bought prior to covid. Still holding them and looking forward to the income stream once I start my drawdown.

RVF


Don’t worry - we have our share of underwater holdings too! Don’t mention IMB...

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Re: Regional REIT.

#409274

Postby ReallyVeryFoolish » May 4th, 2021, 3:24 pm

Spet0789 wrote:
ReallyVeryFoolish wrote:
Spet0789 wrote:Having bought at 61p, my wife sold 25% of her RGL at 86.3p today. Happy with the performance and happy to hold on to the rest but it was a large position! Around 7% of our liquid net worth, now 5%.

That was an absolute bargain. And the income from the shares you still hold will be excellent too. I have too many RGL but they were bought prior to covid. Still holding them and looking forward to the income stream once I start my drawdown.

RVF


Don’t worry - we have our share of underwater holdings too! Don’t mention IMB...

If you don't mention Petrofac, we have a deal then.

Actually, because I reinvested RGL dividends back into more RGL shares, the averaging down effect means I am just about breaking even in capital terms. Not too bad then.

I have been tempted to sell some RGL, but I can't really think of anything with as good, fairly safe income stream. I originally bought it as a diversifier from usual suspect income shares and it's still good for that.

RVF


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