Event in Progress:
Discover the latest content that has just been published on Research Tree
British Land benefited from the bottoming out the the operational performance in its Retail business although yield compression explained the entirety of the NAV improvement. This is likely to further increase the company’s vulnerability to rising interest rates.
Companies: British Land Company PLC
First signs of stabilisation in Retail, flattish in Offices. British Land is close to a copy/paste of LandSec (see our 19 November Latest on LandSec for further information on British Retail, London Offices markets and ECB’s first warning on commercial European Real Estate).
With retailers’ sales now above 2019 levels, tenants should soon be able to afford to pay rents in full, even if landlords may have to write off unpaid FY 20-21 bills. On the other side, rising vacancy rates in London Offices is a concern.
Grey space was increasing in H1 20. British Land now forecasts Offices’ prime rents “to fall 5-10%, over 12-18 months”. It will make the balance sheet more fragile as Offices weighed 65% of BL’s GAV and haven’t been hurt that much until now. The conjunction of cycles (Offices + Retail) becomes likely in H1 21. Retail has accelerated its collapse, once again. The recent share price bump was another opportunity for exiting, following the vaccine. Buy it later.
Ahead of the H1 20 figures scheduled on 18 November, British Land released a trading update in which it announced it will resume the dividend payment. We interprete this move as more of a strategic one.
Aside from its FY 19 earnings presentation, British Land has adopted a more cautious anticipation about Offices in the City of London. We share this pessimism and have been surprised by the recent share’s bump. The latter is the opportunity to turn negative, again, and update our divestment case.
The covid-19 pandemic has had a devastating effect on the share price of property companies, with 31% wiped off the value of their total market capitalisation during the first quarter of 2020.
Companies: AEWU CREI CSH BOOT INL HLCL THRL SUPR RESI RGL GR1T SOHO PHP EBOX ASLI UTG AGR BLND CAL SHED WHR EPIC WKP GRI HMSO PCA NRR
British Land closed the British earnings season with no major surprises. The good news was the stable Offices segment. The bad news was the 10% negative revaluation in the Retail business. Once again: wait for the Brexit consequences.
British Land is the first in months to feel “that some of the short-term operational headwinds impacting retailers are easing”. The signs are, nevertheless, very shy and the bulk of UK Retail assets are still, and will remain, under pressure, while London Offices are very resilient for now.
British Land published uncomfortable H1 18 results, but its long-term strategy should push up its operating profitability and asset value in the future. Underlying profit decreased by 14.6% yoy to £169m. The diluted underlying EPS dropped by 10.4% yoy to 17.2p, lower than expected by analyst consensus. It was negatively impacted by one-off surrender premia received last year.
The value of the portfolio was down by 1.9%, mainly due to the lower valuation of the Retail assets (-4.5%). Office valu
British Land posted an annual profit hike of more than +100%, mainly thanks to property revaluations (+2.2% yoy) which reached £13.7bn in FY17/18 (967p/share). The company’s good numbers were backed by London’s brisk office market which has absorbed the negatives of retail’s challenging environment due to the ongoing Brexit negotiations and increasing online pressure.
British land published its Q1 (end June) interim results. Retailers' conditions remained strong with footfall up 0.9% (+240bp above the market) and retailers' sales up 3.3%. Cost of debt is now at 3.6%, down 20bp following a £350m convertible bond issue and LTV stands at 36.5% (on March 2015 valuations). The Leadenhall Building is now 90% let from 84% at FY 15 and the Q1 interim dividend is confirmed at 7.091p, up 2.5% yoy.
Research Tree provides access to ongoing research coverage, media content and regulatory news on British Land Company PLC.
We currently have 0 research reports from 8
The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.
Companies: Lloyds Banking Group plc
Revolution Beauty has announced a downgrade to the outlook for FY23 driven by retailer challenges and the unprecedented macroeconomic backdrop. It has confirmed it will now report FY22 results on 30 August 2022.
Companies: Revolution Beauty Group plc
Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy
Companies: EQT IES DRX NESF PHE SAE
Cenkos:Duke Royalty Ltd -Record revenues keep on rolling
Companies: Duke Royalty Limited
Management’s reluctance to commit to precise short-term guidance signals that the strong first-half operating performance cannot be taken for granted. The return to a sustainable decent profitability level (above 10%) remains a distant objective as reminded by the management itself.
Companies: Barclays PLC
Companies: Renewables Infrastructure Group (TRIG:LON)Oakley Capital Investments Limited (OCI:LON)
Market performance washed over Liontrust and was the primary detractor as AuM fell by 11% organically (+2% incl. Majedie completion). There were net outflows (£541m) which are never ideal, but exploring this further we see that these are distributed across products/channels, making them relatively near-negligible despite prevailing caution. The AuM outturn was lower than our £35.7bn estimate, driving a 5-6% reduction to our earnings estimates. We think the current 8x PER is pricing in “worst cas
Companies: Liontrust Asset Management PLC
Singer Capital Markets
Dish of the day
No joiners today.
No leavers today.
What’s cooking in the IPO kitchen?
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
Companies: SDI FUL PURP OSI IXI BSE BRSD ATM
A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F
Companies: FOUR JIM JIM CODE PEN PTD WATR SPSY
This quarter’s key observations
• Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move.
• Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1
Companies: CNIC BIG DEVO LBG OTMP SYS
NESF has boosted its effective electricity price hedging with the winning of 86W under the UK’s CfD renewable support scheme. This provides an index-linked 15-year income stream providing a strong underpinning to the fund’s earnings.
Companies: NextEnergy Solar Fund Ltd
Trident Royalties Plc (AIM: TRR) has, this morning, provided an update on its activities undertaken during the quarter ended 30 June 2022. Most of the elements of the update had already been announced in another busy quarter for the company as management finessed existing contracts. Momentum remains powerful with a 155% QoQ (15x YoY) increase in net revenue to $5.7m. The contributory components of this were varied with Koolyanobbing comfortably ahead of our forecasts whilst the gold offtake port
Companies: Trident Royalties Plc
Enclosed is our weekly round-up of news and updates from the professional services sector.
Companies: Personal Group Holdings Plc
The global provider of cloud-based secure payment solutions for business communications has given a positive post-YE update for FY22. We had expected a good year after the strong interims, but sales rose a stunning +60% yoy, while TACV and ARR at YE both jumped c.40% yoy. The financials will beat current market expectations, leading us to upgrade our forecast revenue by 3% and reduce our forecast Adj. LBT by 7%. Cashflow seems to have been particularly positive, with YE net cash £0.7m ahead of e
Companies: PCI-PAL PLC
Foxtons is the best known estate and lettings agent in London. Whilst its track record since the 2013 IPO has been turbulent, the turnaround is well underway, with a return to profitability delivered in 2021 and today’s interims confirming continued momentum (PBT +16%; guidance unchanged). We believe the Group has very strong foundations to build from in terms of its brand and infrastructure and we expect strong earnings growth across the forecast period. We believe the strategy to expand the Le
Companies: Foxtons Group Plc