REITs buyout feeding frenzy signalling long term bottom?

[vand]

Feels like we are at a level where most of them will just be scooped up by US raiders - the likes of Blackstone knows a bargain when it sees one.

Looking at recent offers on WHR, AGR and CRT:

https://perepodcast.podbean.com/e/this- ... -uk-reits/

[Aurelius]

What these three REITs have in common is they are all specialist funds- primary healthcare, care homes and warehouses. I think other specialist funds still trading at a decent discount are most likely to be snapped up, while diversified funds may be left to languish or more likely end up merging with other diversifieds, or opting for runoff like RESI. I bought AGR and CRT this year, which worked well, and now see THRL, PHP, SOHO, SUPR and LABS (now up for sale) as most likely targets.

[BullDog]

Similar story in renewable energy trusts. Sub scale, can't raise capital, sitting ducks for a predator.

[vand]

What these three REITs have in common is they are all specialist funds- primary healthcare, care homes and warehouses. I think other specialist funds still trading at a decent discount are most likely to be snapped up, while diversified funds may be left to languish or more likely end up merging with other diversifieds, or opting for runoff like RESI. I bought AGR and CRT this year, which worked well, and now see THRL, PHP, SOHO, SUPR and LABS (now up for sale) as most likely targets.

Yes, on the podcast episode it was mentioned that the specialist funds make more logical sense for takeovers at this particular point of the cycle.

Nonetheless I think the 4 diversified plays remaining (CREI, AEWU, SERE, PCTN) are all ripe for consolidation, given their modest size.

Similar story in renewable energy trusts. Sub scale, can't raise capital, sitting ducks for a predator.

Couldn't agree more.

[brightncheerful]

I doubt SOHO will be taken over until it has been tidied up. The new managers are intending that this year. I bought some more when it went x d recently expecting the sp to fall. it did but only slighly as others had the same idea. Nice thing about the stock market: you're rarely alone!

[vand]

UK REITs are somehow managing to buck the trend in the wordwide bloodbath taking place today..

[monabri]

UK REITs are somehow managing to buck the trend in the wordwide bloodbath taking place today..

Some duplication in the list (eg PHP 3 times..CREI 2x )

[brightncheerful]

[quote="vand"]UK REITs are somehow managing to buck the trend in the wordwide bloodbath taking place today..

Something to do with the higher yields ?

[Stolenscone]

You can add Urban Logistics to the ever growing list.

[SKYSHIP]

Not appearing on that list is:

CLS Holdings (CLI): 70% NAV discount; 72% NTA discount. 8.9% yield on the reduced dividend, covered 1.7x

The Morstedt family control 60%. They bought a chunk on the way down at c120p. They are now 59,5p. About time they took it private or sold it on.

[scrumpyjack]

Not appearing on that list is:

CLS Holdings (CLI): 70% NAV discount; 72% NTA discount. 8.9% yield on the reduced dividend, covered 1.7x

The Morstedt family control 60%. They bought a chunk on the way down at c120p. They are now 59,5p. About time they took it private or sold it on.

51% is in a family and charitable trust run by Anna Seeley, Morstedt's daughter who is also on the board of CLS. It seems the family is more interested in medical research and charitable activities and probably does not have the finance or inclination to buy out CLS. Perhaps a more realistic strategy for CLS woud be to sell out all the properties in one country (eg France) to an institutional buyer. That would put CLS on a firm footing and no doubt reduce the discount significantly. But perhaps they think they can trade through the current property malaise and so prefer to do nothing and wait it out? In these situations, family sentiment can very much outweigh rational decision making.

[SKYSHIP]

Well, anything would be better than sitting on their hands doing nothing. Totally inert!

One of the Morstedts retired from the BoD last year; hadn't realised that Anna Seeley is the founders daughter - so a Morstedt still represented on the Board.

Selling off the French operation would be a good and radical idea. Should be able to get it away at a 15% discount and totally transform the BS.

[vand]

Did we just see REITs put in a generational low during the Apr 2025 selloff? The index briefly visited levels last seen during the European debt crisis in 2012.. and has has already bounced back higher now.



(my screenshot)