British Land Share Discussion Threads

[jonwig] 22/5/2022 07:42

Interesting article, thanks. The "long term" is important - eight years for Canada Water to be fully utilised, I think.

[philanderer] 22/5/2022 00:36

MIDAS SHARE TIPS: British Land, founded to help individuals buy plots of land so they could vote in General Elections, thriving 70 years after listing

[ram376s] 19/5/2022 13:20

Pop up BLND .300 nurses to train with GDR new game changer test . Multibagger possible .Anticipated news .

[jonwig] 18/5/2022 07:35

FY results:



Look fine to me, which would make the nav discount (30%) a bit excessive.

[jackdaw4243] 26/4/2022 15:18

Rachman :-) showing your age, and so am I.

[williamcooper104] 03/3/2022 15:03

At least Rachman made money :)

[jonwig] 03/3/2022 14:52

... which would give BLND a new reputation, Rachman II, maybe?

[williamcooper104] 03/3/2022 14:10

Should just change the locks over night and tell them to sue

[polar fox] 03/3/2022 14:06

Not a holder, but this in the FT:

British Land, one of the UK’s biggest landlords, said it was planning to axe its rental contract with Gazprom217;s global trading arm based in central London as a growing number of businesses seek to cut ties with the Russian state energy company over the war in Ukraine.

Gazprom Marketing & Trading (GM&T), the Russian gas giant’s global energy trading business, is based in London and occupies the top floors of 20 Triton Street, a block on the east side of Regent’s Park.

British Land said it would try to quit the agreement as soon as possible.

more....

[williamcooper104] 04/2/2022 21:05

and the 15 IRR on developments is a nonsense as it's calculated up to the PC of each development and Bl won't sell them so the long term returns will be a lot lower Earnings yield on total development costs is what's more interesting and closer to the actual long term returns from their developments

[williamcooper104] 04/2/2022 20:19

What's annoying is that we are all guessing what the P&L impact of this transaction is - whereas if it was an American REIT the AFFO/FFO (industry standard earnings yield) would be disclosed

[ericshunn] 02/2/2022 23:34

BLND seems to have lost its way and seems to be a very dull, expensive rent collector these days. £74m of admin expenses to collect £478m of NRI in 2020 (15%) and £367m in 2021 (20%).The 3.6m rent and 2.7% yield on this simple let industrial acquisition reduces very significantly.

[nickrl] 02/2/2022 19:02

Williamcooper took another look and and the 2.7% figure is with the JV debt but in their own name it is 2.2% at Sept 21. Best debt instrument is LIBOR+1.03% although be surprised if they would be able to better that today but your right its probably just about possible to make a small margin over borrowing.

[williamcooper104] 02/2/2022 14:29

Can't open that - sounds like that's there current P&L cost of debt, which isn't their incremental borrowing cost - which is likely lower - BL are not borrowing at near 200bps/what I can borrow at on higher leverage

[essentialinvestor] 02/2/2022 14:20

nick, exactly what I am thinking - looks a bit bubblicious in logistics,
even allowing for undersupply. BLND better served elsewhere.

But, it looks good on those shiny big presentations beloved of City types,
expansion in logistics etc,

Perhaps a tad cynical on my part!.

[nickrl] 02/2/2022 14:15

weighted average interest 2.7% at Sep 21 update

hxxps://www.britishland.com/investors/debt/key-financing-statistics

costing them money.

Site looks developable as Amazon shed is old fashion looking compared to one Amazon use on other side of road but that need vacant possession and then capex but guess they would get more than the 14.70/sqft the current rent implies.

Its still toppy and they are late to party so must be getting worried they have too much in offices.

[jonwig] 02/2/2022 14:13

William - in the HY to 30/09/21, their WA interest costs were 2.7%, so they'll obviously need that reversonary potential.

I think with BLND we have to look at the future development at Canada Water which will be some years in the making.

[williamcooper104] 02/2/2022 13:54

That's the thing though - haven't checked but BLs interest costs will be c1.5 percent so it's still a positive carry even without the higher development yield

[williamcooper104] 02/2/2022 13:53

As often said; compare DV4 - which you can't easily as it's the Riblats run private evergreen fund, to BLs performance since Sir John and Jamie were booted out of BL Compare Andrew Jones/London Metrics performance relative to Chris Gregg - Andrew left when he didn't get the CEO job at BL They've gone for box ticking, institutional friendly management every time over entrepreneurial leadership with absolutely disastrous consequences; unless your a Blackstone LP that is :)

[nickrl] 02/2/2022 13:52

umm needs decent reversion otherwise costing more than interest costs.

surely a sign this part of the mkt is getting overheated

[williamcooper104] 02/2/2022 13:47

Hard to say - as a pure standing asset looks terrible, but it seems to have some development upside so depending on how that plays out it may be a reasonable investment They are totally late to the party - it does seem though that the whole UK CRE market is finally pricing in QE just at the point that the Fed maybe goes QT Generalist REITs underperform specialist REITs BL are also coming to the life sciences party We will see if BL manages to be the exception - but retail, warehouses, offices, labs, mixed use development

[essentialinvestor] 02/2/2022 13:17

Does not even touch the sides, very late to that party.

Find it difficult to believe better returns are not available on
large residential build to rent units than logistics.

[8w] 02/2/2022 13:09

This is more of a jam tomorrow investment. Buy the location and build it out to achieve higher yield in the future.

That said BLND are late into this sector which is disappointing as perhaps they shoud have seen the direction of travel somewhat earlier in the process.

[jonwig] 02/2/2022 07:56

Urban logistics acquisition:



Paid £157m for £3.6m rent - ie. 2.3% yield. Maybe rises to over 3% with reversion. Is this good value, even in London? with prime tenants They are late into the sector, certainly.

[nickrl] 19/1/2022 22:34

Brookfield offloaded 2% over the last two days not that its harmed share price