The Lemon Fool

I can't work out when this offer is due to take place. I haven't heard anything from my broker.

I spotted this re the dividend:
https://www.lse.co.uk/rns/RGL/dividend- ... 58zx4.html

ReallyVeryFoolish wrote:I am amazed at what has happened to RGL shares the last few days. If anyone has considered buying Regional REIT, now has to be an incredible opportunity. The yield is excellent and the share has fallen from a very recent premium. Nothing has changed with this property porftolio as fas as I can see. It's very well managed. I have too many RGL shares already, or I'd be buying more.

I think a major concern for investors is that REIT's and RGL hold retail properties, which are going to be further adversely affected by Coronavirus.

richfool - did you check the stats before your post?

SKYSHIP wrote:richfool - did you check the stats before your post?

I'm not sure what stats you mean.

When tinkering with my choice of words, I did lose the word "may" from my post, in that the sentence should have read:

I think a major concern OF investors is that REIT's and RGL MAY hold retail properties, which are going to be further adversely affected by Coronavirus.

I personally have targeted holdings which tend to avoid retail properties, e.g. RGL and WHR.

I suspect that the fund raise might be delayed too unless markets normalise, whatever form that might take. I was expecting it to be done in the new tax year at a slight premium, based on the older share price.

Having finally dropped, with the market, I decided to add more at just over 90p as I doubt the offer would have been as generous. I doubt that I will take part in the offer now although that depends on what the offer is. Double discount??

Im not sure where that leaves RGL and its pipeline buying. Will they be able to borrow more on the cheap instead? Its looking like money might start being pumped back into the economy. I suppose it depends on how long and how impacted the event becomes. I think we might have two peaks with a ease in the summer.

Hopefully most will just suffer a slight dip and change working practices for a while until we start to get back to some sort of normal and be able to pay the rent. Retail was only 6%. INTU might be fire selling properties soon too. So mixed feelings about REITs. I suppose they will run the numbers on any pipeline deals and proceed if they work favorably.

Richfool - OK - understood.

For the record the RGL sector split is as follows:

# Office - 78%; Industrial - 14%; Retail - 6%; Spec/Alt -2%

so whats the outlook for the office sector ?

My wife bought some today. Couldn’t resist the 10+% yield.

jackdaww wrote:so whats the outlook for the office sector ?

Won't be a need for offices if everyone works from home and the current situation could provoke a paradigm shift

BusyBumbleBee wrote:

jackdaww wrote:so whats the outlook for the office sector ?

Won't be a need for offices if everyone works from home and the current situation could provoke a paradigm shift

================

so does this look bad for RGL ??

Suggestions today that distressed cos should have a three month rent holiday.

Ahhh, those evil landlords, expecting rent.

V8

BusyBumbleBee wrote:

jackdaww wrote:so whats the outlook for the office sector ?

Won't be a need for offices if everyone works from home and the current situation could provoke a paradigm shift

I did have a think about this. Only a minority of their portfolio comprises offices, and offices are usually fairly straightforward to convert into residential if needed.

Spet0789 wrote:

BusyBumbleBee wrote:

jackdaww wrote:so whats the outlook for the office sector ?

Won't be a need for offices if everyone works from home and the current situation could provoke a paradigm shift

I did have a think about this. Only a minority of their portfolio comprises offices, and offices are usually fairly straightforward to convert into residential if needed.

I had a look through their Report & Accounts and noted that many of the office lets were to big companies, like HBOS, Lloyds and Gov departments.

88V8 wrote:Suggestions today that distressed cos should have a three month rent holiday.

Ahhh, those evil landlords, expecting rent.

V8

Many of the businesses occupying their premises will see large drops in their incomes. Landlords are going to have to share this pain, in the same way that lenders to landlords will need to take their share.

jonesa1 wrote:

88V8 wrote:Suggestions today that distressed cos should have a three month rent holiday.

Ahhh, those evil landlords, expecting rent.

V8

Many of the businesses occupying their premises will see large drops in their incomes. Landlords are going to have to share this pain, in the same way that lenders to landlords will need to take their share.

I would think that very much less likely where the tenants are large organisations like Insurance Coys, Banks or Government Depts.

RGL currently 53p!!

richfool wrote:RGL currently 53p!!

My guess would be that some of the open ended trusts have stopped redemptions for an unknown period and some investors have panicked and sold all their property trusts. The ones I bought today just under 53p will help bring my average down a bit. Currently I reckon a theoretical divi of 13.1% and a NAV discount of 44% at the closing price of 64p. Theoretical divi because who knows what will happen over the next 6 months or so.

ReallyVeryFoolish wrote:Mildly nervous that RGL has tanked and staying at a crazy price. Have I missed something or have the blue chip tenants all stopped paying rent on their office space?

I have the same thoughts. Noting that RGL has a very low exposure to retail, I am wondering if Mr Market thinks there will be a reduction in demand for office space and industrial units too, along with pressure to renegotiate rents downwards. Having to work from home may adjust paradigms and perhaps cause some parts of business to review whether they really need large office premises.

I'm still holding, along with Warehouse REIT.

ReallyVeryFoolish wrote:Mildly nervous that RGL has tanked and staying at a crazy price. Have I missed something or have the blue chip tenants all stopped paying rent on their office space?

I think the general uncertainty and the likely hood of companies struggling to pay rent will keep this depressed for a bit longer yet. Know one knows how all the tenants will fair but most will be worse off one way or another

I suspect that some will require some assistance, reduced rents, holidays, or deferred payments going forward and its how they manage this aspect going forwards. I still think they will defer or cut a quarter of divis to hold cash pending on how this pans out. Was surprised that this one went ahead

Just spotted this re Tritax Big Box trimming its dividend:

viewtopic.php?f=87&t=22848