British Land Share Discussion Threads

[pinkie] 11/6/2013 11:47

Is there anyone out there who can explain why this conservative Blue Chip is behaving in this volatile way and under performing the Blue Chip market so market so drasticly

[1nf3rn0] 05/6/2013 23:28

The toppy valuation of the whole FTSE didn't last long - it just seemd to go up to quickly for my liking. Thankfully due to my suspicions of the rise I sold some of these at a good time, and even more fortunately I chose a good moment to sell a chunk of Tesco shares! If this goes back to the low-mid 500's I'll be buying more as I believe quality UK property, esp in London, will always be attractive to investors worldwide. Plus I like to have a reasonable amount invested in physical assets, directly or indirectly.

I also think the current market sell-off will not last too long and that after a period of stabilisation we'll be strongly moving up again in the next couple of months, the money printing presses are sure to keep on.

[skyship] 31/5/2013 14:16

Well, that absurd over-valuation didn't last long! Now back to 606p - a 7% fall over the past week.

CIC still standing on a 28.6% NAV discount @ 120p; and a Tip of the Week in today's IC. Could be the next minor for another run.

[skyship] 26/5/2013 08:20

Well done all those with the perspicacity to stay with these all the way up from the 550p level just a few weeks ago. But has the time come to take profits and move on, at least for a while.

Herewith the Summary extract from a good article in this week's IC - comparing the attractions of the two leading REITs - BLND & LAND:
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"In truth, I find neither company attractive at today's giddy valuations. Land Securities' shares now trades on a 7 per cent premium to next year's book value, using a top-of-the-range forecast from Investec, while British Land trades on a 6 per cent premium. Such premia may well persist as long as monetary expansion depresses funding rates and forces investors to look for alternatives to bonds - which is why we rate both companies a hold. But in the absence of much portfolio growth, buying in at these levels looks speculative.

Fund managers have to invest in British Land or Land Securities, because they alone offer the liquidity needed to fill a big portfolio. But private investors have the privilege of being able to ignore them.

We recommend they do now. Better growth prospects can be found further down the capitalisation scale in specialist players such as Unite or Workspace. And there's no shortage of value in the bombed-out regional property markets, which investors can access through listed companies such as Hansteen (HSTN) and Development Securities (DSC). The latter's shares also trade on a 33 per cent discount to book value - a valuation anomaly so striking we have written up the full story in our tips of the week."
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DSC - of which I wrote here recently - has now risen 35% in just 3 weeks; yet still stands at a 20% DISCOUNT to NAV - and that NAV looks to be rising rapidly as their development programme bears fruit. News on Friday that they may be cashing in their Paddington development by selling to BLND, or could be a JV.

Plenty of better yields and better discounts available in the secondaries; though they too have risen well over the past year. PCTN & SREI always worth watching - many update posts on their individual threads & the CP+ thread...

[1nf3rn0] 21/5/2013 20:58

Lol. I stopped taking seriously any of that person's posts a long time ago, once I realised quite how blinkered he was. He has gone very quiet recently - maybe his ego got bruised. (Personally I'd be embarrassed to continue posting if I'd repeatedly called things that wrong)

I sold 1/3 of these today. It's been a good run from 550p and I think we've probably had the majority of the quick gains. I'm looking at topslicing some BP, BG and Tesco soon (tomorrow even).

Some of it will go into MML when I am more confident that it has bottomed out, and some into RRS. I think I'll be remaining clear of HMB!! CEY just seems too risky due to location, but may be worth a look after the court case is sorted (obviously it will be at a higher price in the event of a favourable outcome, but that'll be worth paying to know it isn't going to zero).

Back to BLND, my other 2/3 will now stay in for a long time, years I expect. This will be my core commercial property holding (in addition to my smaller more speculative holdings CAL and THG).

[pineapple1] 20/5/2013 21:46

Inf3rno.....yes its doing well at the moment.I also bought into DSC on the break of resistence and that to seems to be going higher.
The gold miners have been awful investments .I have caught a cold on AMA and CEY .
Luckily you nor i followed a well known guru's strategy like his legions of followers of averaging down week after week thinking they were more correct the cheaper it became.But i am not bearish on them any longer as most people hate them now.
The HMB bb was hilarious .........

[1nf3rn0] 20/5/2013 21:18

British Land : JP Morgan raises price target to 720p from 665p

[1nf3rn0] 17/5/2013 19:59

Pineapple, seems property is a much more solid investment asset than gold at the moment doesn't it. Just don't let them know on the gold threads ;)

To be honest this has risen much faster than I expected. I'll most likely top slice a few next week if we see a continuation of this rate of increase. I'm looking to build up a side pot of cash from blue chip profits to load into a couple of goldies once the bottom is in (whenever that may be, I'm happy to wait).

[harrodsfree] 17/5/2013 17:42

All part of the recovery. This will re-rate.

[nil pd] 17/5/2013 16:35

We're in. Apart from the fundamentals, the chart looks clearly like a cup + handle formation and a potential 800p area result in short time. Which will see BLND re-rated to where it should be (IMO).

Seen this before on various stocks. If I'm wrong I'll admit it. No advice given.

[a0148009] 17/5/2013 09:15

freda

Thanks for the idea. I do not invest in VCTS have had a couple of bad experiences in the past, they rely partly on the tax break for return, Directors take out far too high fees and you are locked in for 5 years. I agree with you that to buy in the secondary market where there is no lock-in is probably the best way to invest and with VEN at 79p this is an effective tax break of 20%.
Liquidity in the shares make it difficult to deal in them.

AO

[a0148009] 17/5/2013 08:41

Understood - you may well be right, BLND did lose its way during the credit crunch.

AO

[miata] 16/5/2013 15:09

Actually the point I intended to make was LAND was outperforming BLND. Whether that makes BLND cheap or LAND a better share is debateable, I have a slight inclination to the latter.

[freda] 16/5/2013 13:41

AO wrote - where else can PI's have a stake in premier commercial property with a net yield of 4%.

Have a look at some of the second hand VCTs like Ventus (VEN), giving a 6.7% tax free yield and no CGT. OK, it's not property but wind farms. No need to put this into an ISA or SIPP as already tax free.

[a0148009] 15/5/2013 22:22

MIATA

Point taken but yield on LAND 3%, HMSO 3.3,BLND 4.15.

Perhaps there is more steam left in the BLND price to catch up.

Have not looked at all the NAV's BLND 596 which is a long time since the sp
has been at a premium to the NAV.

AO

[a0148009] 15/5/2013 18:33

I love this share, where else can PI's have a stake in premier commercial property with a net yield of 4%.

AO

[thumper1] 15/5/2013 15:24

what about a sipp

[unastubbs] 15/5/2013 15:24

Thanks sicker and MIATA - wish I had put it in the ISA when I bought in March. I will do so now as I intend to hold for years - it will be worth it - thanks again - Una

[miata] 15/5/2013 13:26

Stick it in an ISA and you get it gross.

[sicker] 15/5/2013 12:39

Hi unastubbs

I too was disappointed on receiving my first dividend from blnd.
Does the following I googled help you.


Tax treatment of investors
Distributions from a REIT in respect of tax exempt business are known as property income distributions (PIDs).
UK-resident individuals will be subject to income tax on PIDs at the normal rate of income tax, with a current maximum rate of 45%. Corporation taxpayers will be subject to tax on distributions from the REIT at the normal rate of corporation tax rather than being exempt from tax on dividends. For both individuals and companies this is higher than the rate of tax paid on dividends, but as the REIT itself will not be subject to tax there should be more income available to distribute.
The tax treatment of REITs is broadly comparable with direct investment in real estate. However one disadvantage for individuals is that capital gains from the tax exempt business are taxed on the investor as income, whereas reliefs such as the annual exempt amount or capital losses could be offset against gains from a real estate investment held directly. Another disadvantage is the REIT investors cannot claim capital allowances.

[unastubbs] 15/5/2013 04:40

Hi - beginner's question - "The PID element of the dividend however, will be paid net of 20% withholding tax (unless a shareholder is eligible for payment of a dividend gross" - and this I noticed to my surprise was the situation this morning when I found my didvidend payment 20% less than I expected. So I was just wondering if there is any way to claim this back or is it gone for ever. I am a BR payer - thanks in advance - Una

[miata] 14/5/2013 14:05

The quarterly dividend was increased to 6.6 pence per share in the final quarter of the prior year, bringing the total dividend for the current financial year to 26.4 pence per share. The longevity of our cash flows means we can preannounce the dividend for the next financial year. Pending further investment of the equity placing proceeds, the dividend for the next financial year will be not less than 26.4 pence per share.

The fourth quarter dividend of 6.6 pence per share, totalling GBP65 million, is payable on 9 August 2013 to shareholders on the register at close of business on 5 July 2013.

In respect of the 2013 third quarter dividend of 6.6 pence per share, totalling GBP65 million, 44% of shareholders elected for the scrip alternative in lieu of GBP29 million in cash dividends.

[miata] 14/5/2013 13:58

BLND reported an annual profits rise of 1.9%, driven by the strong performance of property assets.

Income statement metrics FY 2012/13 FY 2011/12 Change
---------------------------------
Underlying profit before tax(1) GBP274m GBP269m 1.9%
IFRS profit before tax GBP260m GBP479m
Diluted Underlying EPS(1) 30.3p 29.7p 2.0%
Diluted EPS 31.5p 53.8p
Dividend per share 26.4p 26.1p 1.1%
--------------------------------- ----------- ----------- --------
Balance sheet metrics
Portfolio at valuation GBP10,499m GBP10,337m 0.5%(3)
EPRA Net Asset Value per share 596p 595p 0.2%
IFRS net assets GBP5,687m GBP5,104m
Loan to value ratio 40% 45%

Investec moved from 'buy' to 'reduce'.

14 May British Land Co PLC BLND Investec Reduce 616.25 621.00 600.00 600.00
14 May British Land Co PLC BLND Liberum Capital Hold 616.25 621.00 528.00 - Reiterates
14 May British Land Co PLC BLND Espirito Santo Execution Noble Neutral 616.25 621.00 603.00 603.00 Reiterates
14 May British Land Co PLC BLND Morgan Stanley Overweight 616.25 621.00 630.00 630.00 Reiterates

[miata] 12/5/2013 18:23

Still yields over 4% and institutions can claim exemption from deduction of withholding tax. NAV probably out of date but RSI confirms richness of valuation.