RGN - Region Group

SilverRanger said:

Maybe they saw a shopping centre and wanted a 50% share?
$20 million is hardly anything compared to their market cap (it's not even enough to pay the dividend!). It really makes me wonder why they are even bothered.

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I agree that it's a bit strange. Just double checked to see if I misread but booklet definitely states 20 million. I'll try contacting them to see what the money is for and why it is so low.

gavmit63 said:

Does anyone know how they are going to use the money they raise. Is it to pay off debt or are they building up cash for future purchases? As far as I can tell the offer booklet doesn't give a reason for the capital raising.

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I emailed and asked them for the reason. Their reply was "used to pay down debt used to fund prior acquisitions and to provide additional capacity to take advantage of appropriate opportunities"

I'll try for the maximum $15,000 in the SPP,too.Mainly for the 5% plus yield.My 4% on-line account expires in June,don't expect to find another paying even that miserable rate of return on my cash,so....it'll be interesting to sit back and watch the scale back.As noted here,earlier ,$20 mill for a $billion mkt cap trust is hardly anything.One of the least informative SPP's I've ever seen.

dyna said:

I'll try for the maximum $15,000 in the SPP,too.Mainly for the 5% plus yield.My 4% on-line account expires in June,don't expect to find another paying even that miserable rate of return on my cash,so....it'll be interesting to sit back and watch the scale back.As noted here,earlier ,$20 mill for a $billion mkt cap trust is hardly anything.One of the least informative SPP's I've ever seen.

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The letter from the chairman, as part of the ASX announcement, makes it pretty clear that "the directors in their absolute discretion" can accept all offers if the offers exceed $20 million or scale them back as they see fit. It is likely that the offer will be oversubscribed and all offers to a maximum of $15,000 per eligible unit holder will be accepted. Good luck.

nulla nulla said:

The letter from the chairman, as part of the ASX announcement, makes it pretty clear that "the directors in their absolute discretion" can accept all offers if the offers exceed $20 million or scale them back as they see fit. It is likely that the offer will be oversubscribed and all offers to a maximum of $15,000 per eligible unit holder will be accepted. Good luck.

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With 4 more days to go my rough calculation shows the current offer price is $1.98, so roughly 1.9%. But who knows what will happen in the next 4 trading days.

SilverRanger said:

With 4 more days to go my rough calculation shows the current offer price is $1.98, so roughly 1.9%. But who knows what will happen in the next 4 trading days.

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I should have picked them up at $1.96 on Wednesday 18th March, then sold them today at $2.06 for a quick 5% profit before brokerage. Another lift across the A-REIT sector today before it settled back before the close. it will be interesting to see whether SCP pushes higher this week.

nulla nulla said:

View attachment 62092

I should have picked them up at $1.96 on Wednesday 18th March, then sold them today at $2.06 for a quick 5% profit before brokerage. Another lift across the A-REIT sector today before it settled back before the close. it will be interesting to see whether SCP pushes higher this week.

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Interesting that SCP outruns almost all other REITS now that it is in the VWAP calculation period.
The size of the raising is tiny, so I won't be drawing too many obscure conclusions - but it might line up some good trading opportunities.
BWP outperformed today too..shopping centre's had a good day!

So the issue price according to my calc should be $2, a whopping 2% return based on current share price ($2.04)

Recent fund raising heavily oversubscribed. Directors decided to accept all applications. Yesterday's price was 2.08 meaning that gain so far is 4% as weighted average price was 2.00.

nth brisbanite said:

Recent fund raising heavily oversubscribed. Directors decided to accept all applications. Yesterday's price was 2.08 meaning that gain so far is 4% as weighted average price was 2.00.

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Yes much more generous than GPT!

At 2.1 it's looking toppish, but should be happy nonetheless

There hasn't been a lot of recent activity in this thread so I though it may be worthwhile throwing up a long term chart as well as a table comparing the share information over the past three or so years.






Disclaimer: The table information is taken from the A-REIT Tables posted previously. Accordingly if there were any errors in those tables then they have been repeated in this table.

nulla nulla said:

There hasn't been a lot of recent activity in this thread so I though it may be worthwhile throwing up a long term chart as well as a table comparing the share information over the past three or so years.
View attachment 70408


View attachment 70410


Disclaimer: The table information is taken from the A-REIT Tables posted previously. Accordingly if there were any errors in those tables then they have been repeated in this table.

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nulla nulla said:

There hasn't been a lot of recent activity in this thread so I though it may be worthwhile throwing up a long term chart as well as a table comparing the share information over the past three or so years.
View attachment 70408


View attachment 70410


Disclaimer: The table information is taken from the A-REIT Tables posted previously. Accordingly if there were any errors in those tables then they have been repeated in this table.

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Here we go again.Two years since the last Share purchase Plan.Now this one at what looks like$2.32 for a maximum of $15,000 for the mums and dads,to raise $50 million.The instos have already grabbed $262 Million at S.P of $2.32.Strange that SCP is currently trading at its near record high of $2.65 at a time like this, of doom and gloom everywhere, for retail real estate. Anyway,I'll be following the smart money and try for the full $15 grand's worth. You get the December dividend,too,for an annual 6% yield,I think.

SCP's mum and dad shareholders(all nine and a half thousand of 'em) put in $111 Million into the Share Purchase Plan,double the $50 Mill wanted.All applications accepted in full,up to the $15,000 Maximum.So that's a nice 31 cent profit on the $2.63 S.P. Plus next month's dividend.So long as Woollies customers keep spending in the shops,this business should be a steady,long-term bet.

$180m Retail Divestment at 24% Premium to Book Value
• Five shopping centres divested to SCA Property Group; collective $180m; 24.1% premium to book value1
• Compelling returns for unitholders; both trusts delivered double-digit Internal rates of return
• $5.7m performance fee generated
SYDNEY (Monday, 20 June 2022) – Centuria Capital Group (ASX: CNI or “Centuria”) subsidiary, Primewest,
has divested five neighbourhood shopping centres on behalf of two unlisted wholesale funds, to SCA Property
Group, for a collective $180 million, representing a 24.1% premium to book value1
.
Collectively, the divestments will generate a $5.7 million performance fee for the Group.
The assets were held across two unlisted closed funds. The first, a single-asset fund, which owned the Fairview
Green Shopping Centre. The second, Primewest Retail Trust (PWRT), a multi-asset fund comprising four
geographically diversified shopping centres as outlined below.
The divestments provide an exceptional result for both fund’s unitholders, delivering double digit internal rates of
return (IRR).
Jason Huljich, Centuria Joint CEO, said, “These daily needs retail neighbourhood shopping centres have proved
resilient throughout the past few years as local communities continued to rely on the supermarket anchored
centres for their non-discretionary shopping. Both funds have been held for long-term periods and the sales
provide compelling returns for our investors.”
Divested Properties State Value Premium to book
value1
Fairview Green Shopping Centre, Fairview Park SA $39.5m 34.4%
Dernancourt Shopping Centre, Dernancourt SA $46.0m 30.7%
Brassall Shopping Centre, Ipswich QLD $46.5m 18.9%
Port Village Shopping Centre, Port Douglas QLD $36.0m 16.1%
Tyne Square Shopping Centre, Northbridge WA $12.0m 16.3%
Total / weighted average $180m 24.1%
-ENDS

i hold SCP

SCP Final June 2022 Distribution Reinvestment Plan (DRP) Issue Price

SCA Property Group (ASX: SCP) (“SCP”) announces the issue price of Stapled Units to be
allocated under SCP’s DRP on or about 31 August 2022 is $2.80 per unit.
In accordance with the DRP Rules, this issue price has been calculated as the arithmetic
average of the daily volume weighted average price of all sales of Stapled Units sold through
a Normal Trade recorded on ASX for the first 10 ASX Trading Days following 1 July 2022,
less 1.0% (1.0% being the Board approved DRP discount for this distribution) and rounded to
the nearest whole cent.
The Distribution Reinvestment Plan (“DRP”) is in operation for this distribution, and SCP
security holders holding 23.8% of the units on issue have elected to participate in the DRP.
This means that 7.6 million units will be issued to these unit holders on the distribution
payment date raising $21.3 million. In respect of this distribution, SCP has entered into an
underwriting agreement with MA Moelis Australia Advisory Pty Ltd (“Moelis”) to underwrite the
remaining 26.2% of the total distribution amount of $89.3 million. This means that the total
units to be issued in respect of this distribution and the DRP will be 15.9 million units at $2.80
per unit raising a total of $44.7 million.
Stapled Units allotted under the DRP will be issued on the distribution payment date and will
rank equally with existing ordinary units from the date of issue. The intended distribution
payment date is 31 August 2022.
Under the DRP Rules, units issued will be rounded down to the nearest whole number of
unit(s) with the residual amount carried forward to the next distribution.
This document has been authorised to be given to the ASX by the Board of SCP.
ENDS

=========================================================================================

DOYR

i hold SCP ( and participate in the DRP )

On November 28th, 2022, Shopping Centres Australasia Property Group (SCP) changed its name and ASX code to Region Group (RGN).

Region Group (RGN) Announces 1H FY24 Results

Financial Performance highlights

• Statutory net loss after tax of $35.0m, up by 63.2% compared to 1H FY23
• FFO per security of 7.6 cps (8.4 cps in 1H FY23)
• AFFO per security of 6.7 cps (7.6 cps in 1H FY23) with distributions per security of 6.7 cps representing a 100% payout ratio
• Net tangible assets of $2.45 per security, vs $2.55 at 30 June 2023 impacted by a 2.0% reduction in likefor- like property valuations
• Proforma balance sheet gearing of 31.6% is at the lower end of our target range of 30-40%
• 97.7% of drawn debt has been hedged against market interest rate movements
• WACD headwinds from FY25 are reduced following the completion of a zero-cost hedge restructure

Operational Performance highlights
• Portfolio occupancy has improved from 97.8% to 98.0%
• Specialty tenant vacancy has reduced from 5.0% to 4.9% with 87% of expiring tenants retained
• 207 speciality leasing deals completed with 2.6% leasing spreads and contracted annual fixed rent increases of 4.3%
• Comparable portfolio MAT growth of 4.1% driven by supermarket sales growing by 4.2% and nondiscretionary specialty sales growth of 4.6%
• Comparable Net Operating Income growth of 2.2%
• Portfolio WALE of 5.3 years
• CO2 equivalent reduction of more than 2,500 tonnes during the period
• $77.2m of properties divested as part of our capital recycling program at an average implied cap rate of 5.23% which is below our incremental cost of debt.
• Commencement of construction on the $31.5m expansion of Delacombe Town Centre with the addition of 11,000 sqm of GLA

Region Chief Executive Officer, Anthony Mellowes said: “Our 1H FY24 results demonstrate the resilience and quality of our core portfolio of convenience-based retail properties, with 84% of our gross rent coming from our anchor and non-discretionary specialty tenants, providing stability to our earnings growth.
Our portfolio has consistently delivered 3.6% average comparable sales growth since FY19 with 53 of our anchor tenants currently generating turnover rent.
Our leasing strategy is underpinning our operational performance, where we are proactively remixing our product offering, securing quality everyday essentials tenants that meet community demands which is driving asset productivity.
This has resulted in the delivery of a record number of leasing deals, a reduction in vacancy and tenants on holdover, and adding value to our shoppers, retailers and investors.
Sustainability remains a high priority and we are on track to deliver our full year commitments and targets.
We have made significant progress to reach our Net Zero target by FY30, where we have 16.1MW of solar PV installed or under construction heading towards our 25MW target.
To date, 8 sites for embedded network upgrades have been complete and 7.2MW expected to be completed in 2H FY24.
We are actively recycling capital to drive portfolio performance and earnings growth by divesting non-core lower yielding properties and deploying into accretive opportunities.
We look to create value through targeted investment across sustainability initiatives, investing with our anchor tenants and repositioning our centres.
Ownership of the largest everyday essentials retail portfolio provides us with a competitive advantage to consolidate this fragmented market and we have sufficient funding capacity to quickly execute on accretive buying opportunities”.

Outlook and Earnings Guidance

We remain focused on executing our core strategy of delivering defensive, resilient cashflows to support secure and growing long-term distributions to our security holders.
We are targeting full year FY24 comparable NOI growth of 3% and expect leasing activity to be weighted towards renewals in 2H FY24. Our $200m capital recycling program will continue to progress subject to market conditions and our conservative approach to gearing will remain, which is expected to be at the lower end of our target range of 30-40%.
We will look to continue to diversify our funding sources with our expiring medium term note likely to be replaced with another should conditions remain favourable.

Assuming no significant change in market conditions, our FY24 earnings guidance is reaffirmed at FFO per security of 15.6 cps and AFFO per security of 13.7 cps with a target distribution payout ratio of approximately 100% of AFFO per security.


A link to pre-register for the webcast of the investor briefing will be available at www.regiongroup.au.


This document has been authorised to be given to the ASX by the Board of RGN.

DOYR

i hold SCP ( and participate in the DRP )

Establishment of Metro Fund 2 with GIC

Region Group (“RGN”) is pleased to announce that it has reached an in principle implementation agreement with GIC to establish Metro Fund 2 (the “Fund”).

Region Group will hold a 20% equity interest in the Fund, with GIC holding the remaining 80%.

Region Group will act as manager of the Fund, with the terms and size being broadly consistent with the existing Metro Fund 1, which has been in place with GIC since 2022.

It is expected that establishment of the Fund will take place before the end of August 2024.

No assurance can be given that the agreement will give rise to a transaction. As and when conditions are satisfied Region Group will update the market.
This document has been authorised to be released to the ASX by the Board of RGN.

ENDS

i hold RGN ( and participate in the DRP )

hasn't been shooting out many lights in the last 12 months

Region has cropped up in the reports from a few LICs , of late. buying for income , and stability, for that matter.

...material new portfolio additions were in ...neighbourhood shopping centre trust Region Group

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- Mirrabooka

Region Group owns a portfolio of high-quality grocery anchored neighbourhood and sub-regional shopping centres. The predominant tenant offering is focused on every day needs of non-discretionary retail spend.

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- AFI

Dona Ferentes said:

Region has cropped up in the reports from a few LICs , of late


- Mirrabooka



- AFI

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i have been focusing on REITs that cater for healthcare providers in the past year , i may be wrong but i think that may be better in the short/medium turn

interesting times coming for the various REITs and their strategies