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Regional REIT.

Spet0789
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Re: Regional REIT.

#351986

Postby Spet0789 » October 30th, 2020, 3:16 pm

Dod101 wrote:
Spet0789 wrote:My yield on purchase is 10%... that's what I focus on. But yes, I think that at this level, the dividend is very secure, looking through the potential noise of the next 1-2 years. I think the market is wrong on RGL. Time will tell...


I know little about Regional REIT and your opinion is all that matters for you. If you are right then you will do well. I wish you well.

Dod


Thanks Dod! The power of your good wishes has lifted the price by 4% since yesterday...

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Re: Regional REIT.

#352010

Postby SKYSHIP » October 30th, 2020, 5:56 pm

Supported today by QUESTOR in the Telegraph.

Essentially saying the dividend looks safe; and why wouldn't you buy for a 10% yield!

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Re: Regional REIT.

#354799

Postby Spet0789 » November 9th, 2020, 2:00 pm

RGL loving the vaccine news! Up over 6% today.

My investment thesis still remains intact... back to normal for RGL's offices by 2022. No doubt more WFH nationally, but demand for lower-density, low-rise offices should be robust. Let's see how things play out!

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Re: Regional REIT.

#354861

Postby richfool » November 9th, 2020, 3:53 pm

Spet0789 wrote:RGL loving the vaccine news! Up over 6% today.

My investment thesis still remains intact... back to normal for RGL's offices by 2022. No doubt more WFH nationally, but demand for lower-density, low-rise offices should be robust. Let's see how things play out!

Oh, goody goody! I topped up last week, both RGL and SLI, and thought I was getting in a bit late paying 64p for RGL. Now at 74.3p.

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Re: Regional REIT.

#355194

Postby Spet0789 » November 10th, 2020, 12:28 pm

richfool wrote:
Spet0789 wrote:RGL loving the vaccine news! Up over 6% today.

My investment thesis still remains intact... back to normal for RGL's offices by 2022. No doubt more WFH nationally, but demand for lower-density, low-rise offices should be robust. Let's see how things play out!

Oh, goody goody! I topped up last week, both RGL and SLI, and thought I was getting in a bit late paying 64p for RGL. Now at 74.3p.


Still available there if you want to add some more. No reason not to be over 100p by year end. BoE will remain very accommodative and businesses will have no reason to default on leases.

One other point that occurs to me... the fact that office workers usually can work from home should help the companies employing them keep generating cashflows. So to some extent, the credit-worthiness of most office-based companies should hold up. RGL quite nicely diversified by tenant business type anyway, as their recent investor day presentation showed.

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Re: Regional REIT.

#360685

Postby richfool » November 27th, 2020, 5:11 pm

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?

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Re: Regional REIT.

#360691

Postby Spet0789 » November 27th, 2020, 5:30 pm

Just someone selling, I'm sure. It's pretty illiquid.

OldPlodder

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).

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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.

#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.

#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.

#413784

Postby richfool » May 21st, 2021, 9:51 am

I came across this in today's Telegraph, though haven't seen it in an RNS:

Questor: at last, a big dividend rise from one of our holdings

Questor Income Portfolio: Regional Reit's 6.7pc increase in this week’s quarterly payment signals returning confidence

After all the dividend cuts our Income Portfolio suffered last year it’s a relief to be able to report an increase – and a substantial one at that. Regional Reit is the holding we have to thank for this welcome news.

It said on Wednesday that it would pay a divi of 1.6p for the first quarter of the year, compared with the 1.5p it paid in each of the last three quarters of 2020. In the first quarter of last year it paid 1.9p but then announced a cut, as we reported in August.

Last year it also abandoned its previous practice of paying more in the final quarter. The result was a total divi of 6.4p for the year to December 2020, a fall of 22.4pc compared with the total of 8.25p paid the year before.

The increase announced this week in the quarterly payment was 6.7pc but what can we expect for the year as a whole?

The company has dropped no hints as to its plans for the next three quarters, but judging by its past habits Questor expects that same 1.6p for the second and third quarters. The question is whether in the final quarter it sticks with 1.6p, mirroring last year’s uniformity, or reverts to its previous practice and pays more.

https://www.telegraph.co.uk/investing/s ... -holdings/

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Re: Regional REIT.

#413826

Postby richfool » May 21st, 2021, 11:03 am

ReallyVeryFoolish wrote:Yes, good news from RGL. Like Questor too, I am unable to understand the low rating of RGL shares in the market. It is a really well run business as far as I can see. Still holding too many RGL shares, but I will continue to enjoy the income.

RVF

Yes, "moi aussi". I just wish that SLI was doing as well.

I did note a comment at the end of the DT article, about RGL being very highly geared.

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Re: Regional REIT.

#414157

Postby Gerry557 » May 22nd, 2021, 2:56 pm

richfool wrote:
ReallyVeryFoolish wrote:Yes, good news from RGL. Like Questor too, I am unable to understand the low rating of RGL shares in the market. It is a really well run business as far as I can see. Still holding too many RGL shares, but I will continue to enjoy the income.

RVF

Yes, "moi aussi". I just wish that SLI was doing as well.

I did note a comment at the end of the DT article, about RGL being very highly geared.


I suppose it depends on your definition of "very highly" . Just over 40% LTV???

I have seen rates from 60% down to 20% for REITs This level seems to be the normal range for a reit. This has risen somewhat since the lock downs to more normal levels and hopefully there is some more to come when things finally get back to pre covid trading.

SREI have been buying back their own shares as the discount was 46%, I think, when it started. Normally I'm against buybacks generally as it not often done when it benefits shareholders. I was buying both as it seemed a temporary problem for good companies. Of course it depends on your definition of temporary. The rise in the dividend wasn't on my radar this soon but I'm pleased it's risen. Still off that 1.9p though.


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