"the dilution" was over 2 years ago and was a dilution of about 16% in exchange for £236m of new assets i.e. an acquisition. The reversionary yield of that acquisition was 11% and it provided further diversification geographically and by customer while still being complementary to the existing portfolio. I don't understand what part of that you are not a fan of? See RNS dated 31/08/21 https://www.research-tree.com/newsfeed/article/regional-reit-ltd-236m-regional-office-portfolio-acquisition-1262641
Firstly interesting article and good to lay out analysis. To my mind this acquisition is the root of their problems it came with a load of vacancies right at the wrong time. Im sure some of the buildings can be repurposed but many aren't suitable. Empty buildings aren't just nil rent they are a rates and service liability.
What i find laughable here is how many people couldn't see this was going to be the outcome and have now run for the exit. They have a bunch of big expires over next 12mths and if all those tenants walk the divi will have to be chopped again. Big question is how much of this is now in the price though?
Not a fan of the dilution
"the dilution" was over 2 years ago and was a dilution of about 16% in exchange for £236m of new assets i.e. an acquisition. The reversionary yield of that acquisition was 11% and it provided further diversification geographically and by customer while still being complementary to the existing portfolio. I don't understand what part of that you are not a fan of? See RNS dated 31/08/21 https://www.research-tree.com/newsfeed/article/regional-reit-ltd-236m-regional-office-portfolio-acquisition-1262641
All of it
Firstly interesting article and good to lay out analysis. To my mind this acquisition is the root of their problems it came with a load of vacancies right at the wrong time. Im sure some of the buildings can be repurposed but many aren't suitable. Empty buildings aren't just nil rent they are a rates and service liability.
What i find laughable here is how many people couldn't see this was going to be the outcome and have now run for the exit. They have a bunch of big expires over next 12mths and if all those tenants walk the divi will have to be chopped again. Big question is how much of this is now in the price though?