British Land Share Discussion Threads

[essentialinvestor] 08/10/2018 07:13

The other options was just to hold the cash and wait.

Now perhaps that was the better option.

[eriktherock] 08/10/2018 07:12

Maybe The Board are buyers as a drop from 693 on the day of announcement to 580ish must represent even better value. What has changed in the High Street recently (House of Fraser, Debenhams possible defaults) was factored-in was it not?

[essentialinvestor] 08/10/2018 07:10

That's not the full context of the statement though, is it?.

British Land's rationale was/is their shares represented better value than...
new asset acquisitions.

[eriktherock] 08/10/2018 06:54

'The Board believes that investment in the Company's shares at the prevailing discount to net asset value offers attractive value.' 14th June 2018.

[essentialinvestor] 08/10/2018 06:13

FT - Landlords struggle to sell billions in UK retail space.

High street woes prompt rush to reduce exposure to sector..

[essentialinvestor] 05/10/2018 11:21

Joe, thinking along the same lines.

Without doubt Brexit uncertainty has caused some of this -
and that's not intended as a political point. Just referenced re the share price

If you are bullish on the sector, you may see that uncertainty as opportunity.

[contrarian joe] 05/10/2018 10:20

Intu up 30% on takeover approach,might put the spotlight on BLND,LAND.

[skyship] 05/10/2018 09:39

"...higher interest rates are on the way, possibly much higher than flagged..."

Just plain wrong and unduly alarmist. There is now pretty well universal acceptance that the higher interest rates being flagged are to perhaps 4%...5% at the very highest.

The reasons are obvious:

# The Developed World private sector is flush with cash

# Very few borrowers due to uncertain economic outlook

# Federal bank balance sheets swollen with debt which must therefore retain "affordable" floating rates

[jonwig] 05/10/2018 09:13

Porsche - up to a point, yes. lenders will benefit, borrowers not. And recession means increased voids for renters. The question about LAND and BLND is whether their share prices are discounting the next recession and then some more.

They must have dusted off their merger plan for another look.

[porsche1945] 05/10/2018 08:54

Financial stocks can do just fine in a recession....higher interest rates are on the way, possibly much higher than flagged and rising bond yields are good for financials as well, no mystery why financials are up.

[1nf3rn0] 05/10/2018 06:45

But again, financial stocks also don't fare well in recessions so it doesn't explain the disconnect.  My view is this move has little to do with NAV and is more related to pushing up dividend yields in reaction to the US treasury yields rising. Once investors wake up to the fact they can buy £1 for 60p and that divi yields at BLND and LAND are higher than they've been for many years (and higher than many now get for the stresses and risks of BTL) the tide will turn and there may be opportunistic takeover bids / sector consolidation.

[porsche1945] 04/10/2018 22:22

Blnd and land have form, highly dilutive capital raises during recessions, brexit a disaster for the uk and commercial property, these could take a serious hit in the downturn thats already started, time to exit.

[1nf3rn0] 04/10/2018 19:10

It's odd that banks and financials were one of the better performing sectors today, generally closing up on a day the FTSE was down over 1%. If property prices (and with BLND and LAND we're talking prime office and retail space) are expected to tank you'd expect banks to have followed suit today, directionally at least.

[contrarian joe] 04/10/2018 18:41

EI,

I have company refs going back to 2000,one main reason for not initially investing was your "very good wealth destroyers point".Shares in issue 2008 517M,2010 874M,2007 NAV 1678p,share price 1212p mkt cap £6.265bn (a 37% discount to nav),by 2009 shares had tumbled to £3.20p, "extraordinary times".

[thebullhunter] 04/10/2018 17:21

I can't see why Blnd has had such a bad day. I can't see any property value news or retail rent news that would cause this. It's got to be a hot favourite to recovery over next few days. Indicators say it's bottom or near.

[essentialinvestor] 04/10/2018 17:13

This is the question you need to ask imv,
can Land and Blnd trade through the next cycle without
needing an equity raise?.
The highly dilutive rights issues of early 2009 were pernicious wealth destroyers.
They are the primary reason their respective NAV's remain nowhere near 2007 levels.

[essentialinvestor] 04/10/2018 17:01

Joe, what makes me pause for thought is US markets are just
a smidge off all time highs here, what happens to the UKX
if say even 10% came off stateside.

[contrarian joe] 04/10/2018 16:52

Pays most of the time to have a wad of cash in Oct,never seems to let you down!!.

[cmackay] 04/10/2018 16:24

In all honesty I didn't expect to see this breach 600 by much but when I saw the drop, although I was tempted to buy back in, I couldn't help but think I might still get a better entry if I wait.

[contrarian joe] 04/10/2018 15:47

Been waiting for that 40% discount,can't remember many times it's traded on that!!,might look foolish short term.

[skyship] 04/10/2018 10:37

# BLND - down 28 (4.6%) @ 580p
# LAND - down 24 (2.8%) @ 850p
# HMSO - down 12 (2.7%) @ 443p
!!!

Must be a big bearish broker report out somewhere...

[jonwig] 04/10/2018 10:36

Most procos seem to be down today. Maybe ...

"End of Austerity" = More govt borrowing = Higher interest rates

More Fed tightening = higher US rates = (usually) higher world rates.

Brexit seesaw still a wild card.

[wookie77] 04/10/2018 10:29

Why is tanking can’t see news?

[essentialinvestor] 04/10/2018 10:04

Land NAV also around 40% Lower than '07.

The highly dilutive financial crisis rights issues caused much of the damage.