Often investors are faced with the difficult decision of having to choose between growth and value. Rarely is it possible to get the best of both worlds, but we think Watkin Jones is one such stock. Not only do the shares trade on a FY20 adjusted PER (ex cash) of 12.0x and pay a 3.6% dividend yield. But also the firm is benefiting from long term tailwinds in its 2 key markets of Build to Rent (BtR) & student accommodation (PBSA). In turn, offering opportunities much larger than we’d previously thought.
Indeed, there are now 148,046 BtR homes in the UK at varying stages of construction, up 19.8% from LY (source: British Property Federation) – worth in aggregate around £10.6bn.