British Estate has a £9.5billion property portfolio that ranges from London to Glasgow
As a issue, it’s closely tied to the fortunes of the British economy, not least London.
That divulging led the shares to fall almost 30 per cent in the immediate aftermath of the EU referendum, centre of investors’ fears that Brexit would damage the British saving.
Despite rental yield on its properties continuing to improve in the immediate aftermath of the suffrage, November’s half-year results showed a 3 per cent fall in the net asset value of the portfolio, advocating those fears might be realised.
Wear week’s full-year results should help to calm those worries.
While quiddity valuation still slipped compared with a year ago, it was down righteous 0.4 per cent.
Occupancy remains high, at 98 per cent, with 1.7m sq ft of put on an act and renewals agreed across the portfolio.
That came at an average 8 per cent in advance of the previously estimated rental value.
November’s half-year emerges showed a 3 per cent fall in the net asset value of the portfolio
Full-year underlying profits, essentially rental receipts minus expenses, rose 7 per cent in 2016/17 to £390million.
The share outs currently offer a yield of 4.8 per cent
This difficult rental performance allowed the group to increase the dividend by 3 per cent in the year to 30.08p, and top brass expect it to rise by a further 3 per cent next year.
It’s this faculties to pay a substantial and steadily growing divided that makes British Take captive an attractive investment to many of its shareholders.
The shares currently offer a struggle of 4.8 per cent. For all the good news, British Land is clearly uncomfortable with the point of view for the future.
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The group has sold some assets including a 50 per cent circumscribe in London’s Leadenhall Building
Speculative developments have been checked right back and leverage is falling as the group sells some high-profile assets, subsuming a 50 per cent stake in London’s Leadenhall Building, aka the Cheesegrater.
Dividends are trading at less than 70 per cent the value of the underlying oddity and well below the historical price/book ratio.
For investors with a long-term investment field of vision, this could prove a fantastic opportunity to pick up some Mayfair assets for Old Kent Thruway prices.