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My REIT spreadsheet as at 28-01-2022

MDW1954
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My REIT spreadsheet as at 28-01-2022

#477734

Postby MDW1954 » February 1st, 2022, 10:54 am

I thought I'd post one of these again.

Most of the data is automatically sourced from Google Finance, with the remainder automatically downloaded from the AIC site.

It's not every REIT in the UK; merely those that are members of the AIC.

And no, I can't explain 3IN's 52-week low, either!

MDW1954


Image

pje16
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Re: My REIT spreadsheet as at 28-01-2022

#477772

Postby pje16 » February 1st, 2022, 12:48 pm

MDW1954 wrote:I thought I'd post one of these again.
And no, I can't explain 3IN's 52-week low, either!

Thanks MDW1954
the 52 week low should be 283.00
You'e not going mad it is 2.83 on my google sheet
Google Finance does have it's moments

funduffer
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Re: My REIT spreadsheet as at 28-01-2022

#477805

Postby funduffer » February 1st, 2022, 2:18 pm

Amazing range of premia/discounts - something like +/- 30%!

I assume the big discounts are traditional high street retail and commercial REITs which have suffered in the pandemic, and the big premia are REITs covering things like warehousing, which has done well in the pandemic.

It will be interesting to see how the re-opening of the economy (retail and workplace) starts to narrow the discounts.

Maybe a time to consider getting a bargain.

The warehouse REIT's look very over-priced.

FD

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Re: My REIT spreadsheet as at 28-01-2022

#477810

Postby RockRabbit » February 1st, 2022, 2:31 pm

funduffer wrote:Amazing range of premia/discounts - something like +/- 30%!

I assume the big discounts are traditional high street retail and commercial REITs which have suffered in the pandemic, and the big premia are REITs covering things like warehousing, which has done well in the pandemic.

To a degree yes, but there appear to large anomalies.

For example, BMO has two REITs in the table. BREI (which is 70% industrial, logistics and retail warehouse) is on a 24% discount while BCPT (which has more of an office and retail focus) is on a 8% discount.

Or RGL (Regional REIT, offices outside M25) on around 8% discount, while McKay Securities (not in table but with offices in south-east + retail warehouses) is on around 30% discount.

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Re: My REIT spreadsheet as at 28-01-2022

#498635

Postby tramrider » May 5th, 2022, 12:58 pm

RockRabbit wrote:
funduffer wrote:Amazing range of premia/discounts - something like +/- 30%!

I assume the big discounts are traditional high street retail and commercial REITs which have suffered in the pandemic, and the big premia are REITs covering things like warehousing, which has done well in the pandemic.

To a degree yes, but there appear to large anomalies.

For example, BMO has two REITs in the table. BREI (which is 70% industrial, logistics and retail warehouse) is on a 24% discount while BCPT (which has more of an office and retail focus) is on a 8% discount.

Or RGL (Regional REIT, offices outside M25) on around 8% discount, while McKay Securities (not in table but with offices in south-east + retail warehouses) is on around 30% discount.


I think some of the NAV discounts might be explained by the gearing. Both BREI and BCPT have about 26% gearing. This must mean that the bank 'owns' 26% of the business NAV and the IT shareholders only 74% of the NAV, if it all had to be wound up. Compare this with RGL that has about 0% gearing.

https://www.theaic.co.uk/companydata/0P00008ZTB BREI
https://www.theaic.co.uk/companydata/0P00009ARG BCPT
https://www.theaic.co.uk/companydata/0P00017S0D RGL

Gearing might be another useful column to add into the excellent spreadsheet, next to the discount column. ;)

MDW1954
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Re: My REIT spreadsheet as at 28-01-2022

#498661

Postby MDW1954 » May 5th, 2022, 2:37 pm

tramrider wrote:
Gearing might be another useful column to add into the excellent spreadsheet, next to the discount column. ;)


I'm not averse to this. It's not difficult to do, although it does complicate turning it into an image. I'll have to investigate.

But... of what practical value is it? How does one interpret gearing in a REIT? Personally, I like gearing, and as SKYSHIP has observed, some REITs are ludicrously under-geared. Take UKCM, for instance.

MDW1954

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Re: My REIT spreadsheet as at 28-01-2022

#498670

Postby tramrider » May 5th, 2022, 3:01 pm

MDW1954 wrote:But... of what practical value is it? How does one interpret gearing in a REIT? Personally, I like gearing, and as SKYSHIP has observed, some REITs are ludicrously under-geared. Take UKCM, for instance.

MDW1954


I think that NAV 'True Discount' = Discount - Gearing, so that for
BREI true discount = 26.29% - 26% = 0.29%
BCPT true discount = 22.24% - 26% = -3.76% (Premium) (but gearing was 14.4% at 31/12/2021)
RGL true discount = 13.62% - 0% = 13.62% (but Loan to Value 42.4%)
UKCM true discount = 22.04% - 0% = 22.04% (but gearing was 13.5% at 31/12/2021; has it disappeared?)

If correct, this throws quite a different light on some of the simple discount figures.

I am not sure that the AIC gearing values in their tables are correct, when compared with the Factsheet documents. The gearing values seem a bit variable!

Tramrider

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Re: My REIT spreadsheet as at 28-01-2022

#498679

Postby RockRabbit » May 5th, 2022, 3:35 pm

tramrider wrote:I think that NAV 'True Discount' = Discount - Gearing, so that for
BREI true discount = 26.29% - 26% = 0.29%
BCPT true discount = 22.24% - 26% = -3.76% (Premium) (but gearing was 14.4% at 31/12/2021)
RGL true discount = 13.62% - 0% = 13.62% (but Loan to Value 42.4%)
UKCM true discount = 22.04% - 0% = 22.04% (but gearing was 13.5% at 31/12/2021; has it disappeared?)

If correct, this throws quite a different light on some of the simple discount figures.
Tramrider

I don't think your calculations are correct. NAV (net asset value) calculations already take debt (which results in the gearing) into account.

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Re: My REIT spreadsheet as at 28-01-2022

#498688

Postby tramrider » May 5th, 2022, 4:34 pm

RockRabbit wrote:I don't think your calculations are correct. NAV (net asset value) calculations already take debt (which results in the gearing) into account.


Oops! I think you are right and I am wrong. I suppose the key thought is the word NET in NAV, being net of debt.
Sorry.

Tramrider

MDW1954
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Re: My REIT spreadsheet as at 28-01-2022

#498764

Postby MDW1954 » May 5th, 2022, 10:06 pm

Taking BREI as an example, the gearing is 26.29%.

The company's website says this:

The Company uses gearing to enhance returns over the long term. Gearing, represented by borrowings as a percentage of total assets, should not exceed 60 per cent. However, it is the Board’s present intention that borrowings will be limited to a maximum of 45 per cent of total assets at the time of borrowing. The Board receives recommendations on gearing levels from the Managers and is responsible for setting the gearing range within which the Managers may operate.

The Company’s borrowings are represented by a £90 million term loan with Canada Life which expires in November 2026 and a £20 million revolving credit facility with Barclays which is available until March 2025.


In that context, I don't know how useful it would be for the spreadsheet to report gearing?

Personally, I do like to look at LTV figures. Gearing approximates to this, but is it the same?

Happy to amend the spreadsheet, but you'll need to convince me as to why.

MDW1954


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