The Lemon Fool

MDW - Yes, a good update from CREI too; though sure needed to be.

Personally I would never touch CREI other than to short. The yield ok but not special at 4.74% on the sp up at 105.5p. But the big problem is that they trade at an NAV premium - 3.7%. Another problem is that CREI anchors the sp with its regular equity issues. I would expect another in the near future after the recent rise.

To my mind a propco at a premium is an absurdity; though CREI nothing like the absurdity of LMP - a 30% premium and a yield of only 3.4%.

Yes apologies MDW, I was in somewhat of a hurry.

The importance of the second one is that an institution had woken up to the fact there is good value on offer combined with a ready seller (Stadium).

We now have that seller out and hence the uptick as more investors realise after the last update that this is a well run REIT with a good story to tell.

With a likely further rise in the dividend post September we are at a purchase today looking at a monthly dividend giving an annual 7% income.

Now at 75p; but with an annual dividend of 5.5p (looks wired in; subject to confirmation post 30/09) the yield is a very healthy 7.33%.

SKYSHIP wrote:Now at 75p; but with an annual dividend of 5.5p (looks wired in; subject to confirmation post 30/09) the yield is a very healthy 7.33%.

Hi Skyship, Any thoughts on this and its possible affect on EPIC?

viewtopic.php?f=87&t=30565&p=432489#p432489

I did read somewhere, (but can't remember where) that one REIT had successfully sold a property and re-let it at a higher rent.

This is an encouraging article
https://www.trustintelligence.co.uk/inv ... l-jul-2021

I noticed in the Sharecast Tip ticker earlier today that Royston Wylde is now tipping Ediston as a buy. A bit late to the party, and I haven't seen the text of his recommendation but hopeful if he still think it has legs despite the tap having been removed then we may get to 80p yet.

Spiderbill

Richfool - I think PeanutMolloy's last post on that thread (4th August) made a good response re PetsatHome.

The problem PaH will find is that on the few less attractive retail parks they may have some success; but on the leader parks which EPIC has in abundance, other retailers will eagerly snap up any site they may threaten to discard. The positive footfall stats in Retail Warehouse suggest PaH have rather miscalculated the opportunities for rent reductions.

Clearly EPIC are no longer the short-term outstanding bargain they were when I started the thread; but for the medium term they are still cheap on a 15% discount and a prospective yield of 7.4%. The target of 80p would still provide an 8.2% discount and a 6.9% yield - good value versus many peers trading on a premium and a far lower yield.

SKYSHIP wrote:Richfool - I think PeanutMolloy's last post on that thread (4th August) made a good response re PetsatHome.

The problem PaH will find is that on the few less attractive retail parks they may have some success; but on the leader parks which EPIC has in abundance, other retailers will eagerly snap up any site they may threaten to discard. The positive footfall stats in Retail Warehouse suggest PaH have rather miscalculated the opportunities for rent reductions.

Clearly EPIC are no longer the short-term outstanding bargain they were when I started the thread; but for the medium term they are still cheap on a 15% discount and a prospective yield of 7.4%. The target of 80p would still provide an 8.2% discount and a 6.9% yield - good value versus many peers trading on a premium and a far lower yield.

Thank you for your thoughts, Skyship.

Yes, I noticed that on one of our local retail parks, (where there is a Pet store, along with an Aldi, Curry's, Carpetright and Matalan), that when Aldi moved out to a much larger premises, the old Aldi premises was quickly re-let to an Iceland Food Warehouse.

I was a bit late to the party, with EPIC, getting in at 73.65p, which I will stick with. I'm not too eager to add more REITs, as I already hold: RGL, SLI, WHR & PHP in that sector.

SKYSHIP wrote:MDW - Yes, a good update from CREI too; though sure needed to be.

Personally I would never touch CREI other than to short. The yield ok but not special at 4.74% on the sp up at 105.5p. But the big problem is that they trade at an NAV premium - 3.7%. Another problem is that CREI anchors the sp with its regular equity issues. I would expect another in the near future after the recent rise.

To my mind a propco at a premium is an absurdity; though CREI nothing like the absurdity of LMP - a 30% premium and a yield of only 3.4%.

MDW - you would have seen that this past week CREI found another route for dilution with an intended all equity offer for DRIP

Still standing at a premium, so a sensible thing for them to do; but yet again undermines any reason to hold IMO.

SKYSHIP wrote:

SKYSHIP wrote:MDW - Yes, a good update from CREI too; though sure needed to be.

Personally I would never touch CREI other than to short. The yield ok but not special at 4.74% on the sp up at 105.5p. But the big problem is that they trade at an NAV premium - 3.7%. Another problem is that CREI anchors the sp with its regular equity issues. I would expect another in the near future after the recent rise.

To my mind a propco at a premium is an absurdity; though CREI nothing like the absurdity of LMP - a 30% premium and a yield of only 3.4%.

MDW - you would have seen that this past week CREI found another route for dilution with an intended all equity offer for DRIP

Still standing at a premium, so a sensible thing for them to do; but yet again undermines any reason to hold IMO.

DRIP is tiny -- I looked at buying some last year, but concluded that it was just too small. So, in my view, CREI is a good wrapper for what were some interesting assets.

I think that we are looking at REITs through different lenses. My main focus is income, while your primary focus is more capital-centric. That's not a criticism, of course -- simply an observation regarding why we might see the picture differently.

Keep up the good work! I always find your views interesting.

MDW1954

Price has drifted back a little. Able to buy this morning at a 7% yield with probable 10% dividend uplift later this year.

Very interesting deployment of the proceeds of the Tesco site sale at Prestayn with the purchase of Stirling's largest retail park Springkerse, on a NIY of 9.54%. Anchor tenant B&Q but Halfords and Pets At Home among the others.
Net operating income from the new asset is 35% higher than the rent that had been received from Tesco, plus good scope for EPIC's active management to add value.

Thanks PeanutsMolloy, hopefully someone on these boards can visit the Stirling site and report back. The dividend rise looks baked in and expecting at least a 10 per cent rise. The market obviously likes the deal given the price action this week. Really glad I topped up on Monday

So EPIC reached 80p this morning. Looking good.

back down to 76.2 now

airbus330 wrote:So EPIC reached 80p this morning. Looking good.

Epic.

Have just spoken with Calum Bruce and know we are in good hands here. Very positive on the Stirling purchase and it's potential.

Next NAV update should be good....

pje16 wrote:back down to 76.2 now

I should have added the word 'briefly'. Trend looks good though.

agreed - the trend looks good
and I enjoy knowing their are a few of us here invested in it
Thanks @SKYSHIP for the OP which got me into it

I saw the spike in SP but couldn't find an obvious reason. Big buyer I suspected or some missed news. Anyway what ever it was has settled down.

The next buy inching further and further away.

Most of my REITs up today, so maybe its their time!