| 11:29 12/03/2012 | LSR Good ISA & SIPP Buy |
| As it's that time of year when everyone is scratching around trying to fill their ISA allowance here is my suggestion which I have bought this morning. I have tracked this share for 3 years and finally bought it now that it has dipped under 50p. The financial press are continually advising that one should hold fixed income products within an investment portfolio but I have very little for 2 reasons; Certain shares like this produce better yields and secondly I don't understand or get excited by bonds/gilts. This share is perfect for a SIPP and can also be held within an ISA which is unusual given that it has a market cap of £40m but this is due to its REIT status. This is a well run property business run by an experienced team who conduct fairly conservative/small deals and have built a commercial retail portfolio with target yields of 6.6% and IRR's of 15%. (Hedge Funds promise over 20-30% but rarely deliver these returns yet still take huge fees) Local Shopping Reit (LSR) 47.25P * Discount to NAV (65P) of 27% * Progressive Dividend policy with last years dividend of 4p producing a yield of 8.4% * Strong Corporate Partnerships having just launched a £60m retail fund with Schroders and a jv with Pramerica * Solid business model with fees generated from multiple sources; rental income, Property management fees, joint venture partnership development deals which produce acquisition fees and profit share fees. As a little footnote, I had a target price of sub 50p yet my broker (HL) showed the price as 51.5p to buy this morning yet when I bought the share at 47.25p. Both this buy and my buys last week have been recorded as sells on various financial websites (as they simply guess from the price the deal was traded at). The morale of the story is to not believe all the transaction prices you read but to focus on what level you're comfortable at and trade accordingly. By Deadly Dom |
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| 13:46 27/05/2011 | Local Shopping-an income buy |
| http://www.investorschronicle.co.uk/Tips/Buy/TipsOfTheWeek/article/20110527/1a802382-8788-11e0-b922-00144f2af8e8/Local-Shopping-an-income-buy.jsp Created: 27 May 2011 Written by: Stephen Wilmot Local Shopping Reit sounds like a play on the UK high street, which is suffering the well-publicised retrenchment of national retail chains like Mothercare and HMV. Fortunately, it is not: the group owns much cheaper outlets, typically occupied by corner shops, hairdressers and takeaways. That's a more resilient market, partly because the tenant base is so diverse - 70 per cent of tenants are independent - and partly because convenience 'top-up' shopping is back in vogue. Recurring profits (which Local Shopping Reit pays out fully in dividends) were up 16 per cent to £1.6m. That was due to acquisitions in the second half of last year, as like-for-like rental growth was flat. Joint chief executive Mike Riley thinks rents will continue to flat-line, so the key to increasing rental income will be reducing voids - currently 11.1 per cent - and bad debts. He also hopes to start generating a new income stream from the asset management of joint ventures, including with banks keen to manage their bad debts without selling. A first joint venture, with Pramerica Real Estate, was announced last November to invest £100m in the 'neighbourhood retail' sector. Local Shopping Reit will stump up just 20 per cent of the equity (£7.5m), but will manage the whole portfolio - a capital-efficient way of earning income. Brokerage Evolution expects year-end adjusted net asset value (NAV) of 85p (31 March 2011: 79p). LOCAL SHOPPING REIT (LSR) ORD PRICE: 63p MARKET VALUE: £52m TOUCH: 62-63p 12M HIGH / LOW 64p 47p DIVIDEND YIELD: 6.0% TRADING STOCK: NIL DISCOUNT TO NAV: 11% INVEST PROPERTIES: £191m NET DEBT: 211% Half-year to 31 Mar Net asset value (p) Pre-tax profit (£bn) Earnings per share (p) Dividend per share (p) 2010 78 7.5 9.2 1.7 2011 71 2.5 3.0 1.9 % change -9 -67 -67 +12 Ex-div: 8 Jun Payment: 30 Jun Guide to the terms used in IC results tables. More analysis of company results More share tips and updates... SHARE TIP UPDATE: Buy Although NAV and reported profits took a hit from the dip in property valuations, Local Shopping Reit remains a well-run company in a resilient sector. Trading 26 per cent below adjusted NAV forecasts, the shares continue to rate an income buy. Last IC view: Buy, 56p, 6 December 2010 By SpikeyDT |
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| 12:39 27/05/2010 | Local Shopping into the black |
| Local Shopping into the black http://www.growthcompany.co.uk/news/1256983/local-shopping-into-the-black.thtml By InvestingGarden |
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| 11:36 12/11/2009 | Picking AIMs property performers |
| Picking AIM’s property performers http://www.growthcompany.co.uk/features/1089047/picking-aims-property-performers.thtml By InvestingGarden |
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| 9:29 10/02/2009 | Interim's |
| http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=2087369&source=RNS Looking good so far. By Ekati |
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| 16:56 25/01/2009 | Re: Time to buy? |
| I purchased a small holding at marginally below this price in Nov (although I have had a near 3p divi since).Frankly it is difficult to put a price on the shares.There appears to be a seller around perhaps Property Unit Trusts who need to raise cash.Interestingly LSR is still buying back shares.I dont see much reason for the shares to increase in the near future.A fall could present a buying opportunity but I would not make this more than a small investment. By TX2 |
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| 16:48 24/01/2009 | Time to buy? |
| or waiting till they hit bottom for the second time? THX. Ekati By Ekati |
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| 19:48 05/12/2008 | info |
| Retail property trust Local Shopping REIT is continuing to pump out dividends and buy back shares despite slumping property values tipping it further into the red. A £44.4m hit on the value of its property portfolio saw loss before tax widen to £40.47m from £4.26m last year, when losses were deepened by a £6.4m dive in property values. What the company calls its recurring profit rose to £5.1m from £1.7m a year earlier. In keeping with its policy of distributing 100% of recurring future profits as dividends, the company has upped the full year dividend to 5.75p from 3.42p a year earlier. Gross rental income rose to £16.69m from £13.1m while net rental income improved to £14.1m from £11.5m. The company’s net asset value slipped from £152m, or 156p per share, to £93m, or 112p per share. Net asset value per share was boosted by 12p through the company’s ongoing share buy-back scheme. The void rate on its properties increased from 5.6% to 10.6% of market rent. “However, we believe that our diverse occupier base, with its non-discretionary bias (71.7% of whom are local independent traders), coupled with our affordable rental levels (the average shop rent is below £13,000 per annum) will prove resilient in the tough trading environment that lies ahead,” said company chairman, Graham Whateley. Company borrowings totalled £116.9m at the end of September, with a loan-to-value ratio of 55.9%. The company’s two fully drawn loans expire in 2016 and have an effective interest rate of 5.69%; neither loan has loan-to-value default provisions and both have low interest cover tests, providing “comfort in these unpredictable times.” By forwardloop |
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| 15:36 19/10/2008 | Re: is there life out there? |
| I was a shareholder in LSR until early this year when with luck I bit the bullet and took a 20% loss.I never imagined it would fall so low.I suppose the point comes when it becomes good value.The problem is I suppose gearing and property valuations at year end-or indeed next year.How far are they going to fall and each 10% fall after gearing effects leads to a 20% fall in NAV.Borrowing seems in place but I am not sure of valuation covenants.I feel most of its properties would only find buyers on a 10% or better yield which may mean their book value is too high.Does the present share price compensate for the risks?Thoughts welcome! By TX2 |
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| 13:56 16/10/2008 | is there life out there? |
| Been following this stock for a while now, having almost bought in pre-crash. Is it going places or is it in hibernation? Is anyone on this BB following it? By montague h withnail |
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| 14:24 09/12/2007 | Re: Mail on Sunday |
| Not directly.LSR is a standard closed ended property co not an open ended fund.Selling of shares in REITs by open ended property funds to maintain liquidity has in my opinion depressed share prices and obviously if they are also forced to sell properties in a hurry this could effect asset values of properties directly.However the props held by LSR are not typical of those held by most property companies and are more likely to be affected by general market conditions.LSRs shares are decent long term value and offer a reasonable yield although I dont expect a great increase in value at present.At least they have moved up following results. By TX2 |
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| 23:18 04/12/2007 | Mail on Sunday |
| How relevant? Trust forced to sell off property: Property funds lashed with further bad news lasat week as at least one confirmed it was a forced seller of buildings in a weak market. Invesco Property Income trust - selling to meet the requirements of its lenders. Trust borrowed substantially in the summer just before the credit crisis rocked the financial sector ... IPIT's lenders do not want the borrowing to exceed 65% of the value of its assets. Now 63% Investors are so negative about the funds prospects that its shares are worth 40% of the trusts property assets at £465m. Forced sales of property into the current mkt is bad news for all property investors. incl thousands of small investors who have given £billions to investment houses such as New star, M&G, Scottish Widows to put in funds that buy commercial property. Most have seen values fall, some have seen substantial withdrawls. Several fund mgrs have told corporate investors that there will be delays if they want to cash in their holdings. However they are seeking to reassure investors. Invescos Angus Pottinger said "we have hasd assets for sale for some time. This is undoubtedly a sticky patch, but occupancy is high & tenants are not going bust. We do not see a commercial property crash" John Cartwright head of property at M&G said "What we are seeing is a short sharp correction, but this also means that recovery is likely to be quicker. The beauty about property is that it generates an income that is always stable, and that remains attractive". But not all observers are so upbeat. Analysts at brokers Winterflood sec published a note last Tues saying ; "Since the start of 2006 there has been inflows of £6.2 bn from private investors. Confidence in aset class has been shattered. We believe there will now be a rush to exit these funds." GRAPH Paid in Jul £54m, Aug £69m, Sept £62m Oct TAKEN OUT £159m By forwardloop |
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| 14:55 04/12/2007 | info |
| http://incomemonkey.blogspot.com/ commercial property income By forwardloop |
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| 19:04 31/08/2007 | Thanks |
| Thanks for that, much appreciated!! By NewTrader2006 |
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| 17:11 31/08/2007 | Re: A good company |
| Decent long term value & a good dividend promised.Difficult to say where they will go in the short term as property shares are all over the place(mostly down!).But at least we are in at 20%+ below opening subscription price.Good luck with your Henry Boot shares(i saw your posting) I have been a shareholder there for a good few years,they have been one of my best investments. By TX2 |
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