FRTEB
09 Mar 2018
ToyRus Hello all I'm not invested in SLI but thought I would make a post as I was passing through Luton last night and happened to call in to a Starbucks on a retail park owned by SLI (small plaque on the wall by the traffic lights at the entrance). Looks like it's possibly a new retail park as it has an unfinished look about it. There is/was a ToysRus store there. I don't know if SLI leases any other stores to them on other sites. Anyway - heads up and best wishes...
Stepenwolf
11 Jul 2016
Re: Any impact from fund redemptions? Yup. Hope it lasts. I also got the two F&C and the TR property IT's too
Kapulski
11 Jul 2016
Re: Any impact from fund redemptions? Stepenwolf - up nearly 9% today. Didn't we do well?
Stepenwolf
08 Jul 2016
Re: Good thoughts Or perhaps to scare investors off from selling ?
Greyinvestor
08 Jul 2016
Good thoughts A good series of thoughts. I was simply staggered to see in the FT that Aberdeen was talking about writing down property values by 20%. If this is true, I wonder on what basis? Surely you have to get external professional valuations done or to use a discount rate to revalue...........
He who cannot be named
08 Jul 2016
Re: First look I cannot tell if net rents do or do not cover the dividend, as 2015 was a year of change re scale of the trust, change to REIT status and issue of fresh capital/taking on debt re the significant acquisitions which appear to have taken place at the end of the year. There is a note in the accounts indicating the extra rentals etc the new acquisitions might have added if they had been held from 1/1/15. It looks difficult to determine on an ongoing basis from the data in public, I think we may need to wait on half year figures some time in August to fully understand what is covered what is not.What makes me think the dividend is possibly covered is that the REIT rules in effect require nearly all the net rentals to be distributed and I believe the trust would have given forward guidance if the existing dividend was being threatened by last year's purchases, I certainly have not seen such guidance.Appreciate this is a very weak justification , but at least SLI can, if need be, batten down the hatches , it has no need to be a seller of properties into what may turn into a hostile market, so for me, at current prices, it is a buy and I have rebought at 69.03p (inc costs) . This was a half holding to enable pound/cost averaging if my timing is wrong, which it usually is. (may be too early)HWCBN
Greyinvestor
08 Jul 2016
First look Has a quick look at these.I am only prepared to buy a REIT when the property income (rent) less costs exceeds the dividend. In this case it doesn't, as far as I can make out, which means that divis will slightly erode the NAV.My second criterion is to choose a REIT where the NAV is unlikely to fall. In this case there may be a risk of small falls, which will be magnified by gearing. However the profile of properties doesn't look too bad to me, and the discount to NAV helps. On balance I think the NAV is most likely to fall, so this is a modest black mark.I am already a big investor in HSTN, which in my opinion has a better profile, but a crazily expensive LTIP.So I'm not buying this one yet. But it doesn't look terrible.
Stepenwolf
06 Jul 2016
Re: Any impact from fund redemptions? I feel better already 
Kapulski
06 Jul 2016
Re: Any impact from fund redemptions? Well, I may be deluded, but I topped up today.
Stepenwolf
06 Jul 2016
Re: Any impact from fund redemptions? If the rental income is good and safe, and no need to sell the properties (as may be the case with OIECS) then these could be a bargain - or am I deluded ?
fieldsman
06 Jul 2016
Re: Any impact from fund redemptions? Looking on Morningstar, there seems little duplication between the oeic funds and IT portfolios.Discount to NAV looks attractive but of course property prices could fall, which, added to the flood of redemptions, increases the current downward pressure on the fund price.I am tempted to try my luck with the falling knife.
paulcynric
05 Jul 2016
Re: Any impact from fund redemptions? I you are holding short term then by all means sell, if I am being brutal I could do with picking more of these up cheaper by those who wish to sell, next tranche (if the opportunity arises at 60p). The commercial property market has had a good ride for a while now it may very well take a pasting short term, but people have to work/operate somewhere and property is a necessity. I had the same opinion when the BRWM trust was falling (We will fundamentally need the raw materials being produced from quality companies) bought in at 220p and rode the wave down and now up its been a year of pain but the gains have been worth it. I guess you need to look at the holdings of the fund and judge if you thin the assets are quality or not.
Dingledangle
05 Jul 2016
Re: Any impact from fund redemptions? They can borrow to pay sellers short term. With BoE lowering interest rates this shouldn't be too bad.
baylea
05 Jul 2016
Re: Any impact from fund redemptions? The SLI web site lists the top ten holdings. They look like small buildings, spread out geographically. If the fund and SLI are different properties then I'm not worried so much. I think the income will still flow. But my worry is if the fund is buying SLI and needs cash to pay sellers, then they will have to sell property. I have to admit I didn't realise the fund existed.
Koutousov
05 Jul 2016
Re: Any impact from fund redemptions? Even if there's no correlation, the outlook for commercial property looks pretty grim just now. Aviva Investors has followed Standard Life by suspending dealings on its £1.8 billion property fund, and more asset managers will probably do likewise. At some stage these open-ended funds are going to have to resume dealings and satisfy investors' demand for cash by selling properties. This has all the ingredients for a real property crash, just as we had when the financial crisis started in 2007. I'm inclined to sell.
