Shares in quality office landlords such as Helical (HLCL) and Derwent London (DLN) trade at sizeable discounts to NAV. Given the ultra-prime location of their offices, broadly stable asset valuations and solid balance sheets, that looks to be an overly harsh judgement of their prospects by the market.
Investors are likely to have to pay a high premium for exposure to safer returns from popular logistics stocks, but those willing to stomach greater risk may find more compelling value within the office sector. |
Derwent’s Network Building plans fall down on housing and public open space |
nick, agree with that , good summary. |
Office reduction, if its going to happen, will largely take place when leases breaks or expiry's come due and i remain of the view that DLN has one of the higher exposures to this over next 18-24mths. At best they won't get increased rents in future if they are going to retain tenants on existing floorspace.
DLN do have an advantage over the quality of there buildings so they aint going to disappear anytime soon but imv the share price doesn't reflect the downside risk here but probably supported by expectation of overseas buyer to take it out. |
GOLDMAN RAISES DERWENT LONDON PRICE TARGET TO 3,990 (3,693) PENCE - 'BUY' |
DLN has sold one of bigger properties at 4% below last valuation but in doing so has offloaded potentially 40% of lease breaks/expiries in 2021 so maybe a shrewd move.
However, separate RNS demonstrates that increasing rents at reviews/relets maybe becoming more challenging. OK they've increased the space let on this but at same rent and extended the lease by two years but at the cost of 11 months rent free.
DLN on forecast 2% yield feels overvalued for me but I guess share price is reflecting the income stream due from various developments which they've pre let. |
EI they know the price has got ahead of reality but thats the market for you |
Those recent director sales may be worth noting, unless you expect a bid |
And another...
Derwent London revealed on Tuesday that director Simon Silver had disposed to 12,170 ordinary shares in the FTSE 250-listed property investment and development business.
Silver, who will retire from Derwent's board in February 2021, sold the shares on Monday at an average price of 3,181.96p each, for a total value of £387,244.59.
Sharecast |
Indeed it has nick.
'New central London office construction falls 50% in six months - Deloitte' |
Philanderer thats raised him a fair few quid and clearly sees it as an opportunity not to be missed |
Non-exec chairman sold 163,000 @ £32.892559 yesterday. |
London landlord Great Portland Estates said it had written down the value of its portfolio by 6 per cent overall. The value of its retail properties has been cut by 18 per cent as vacancies in central London have risen and rents dropped.
“It is clear that the impact of the Covid crisis will persist for longer than we had hoped,” said chief executive Toby Courtauld, announcing first-half results. |
Derwent London and Westfield among landlords to cheer Pfizer update |
London’s commercial property landlords lifted by Pfizer update |
just extraordinary rise across all the heavyweights me thinks a few shorts now the way forward |
Wow.. are REITs meant to move like that?! |
Derwent London commits to developing a major office scheme on Baker Street |
Solid enough under the circumstances... will continue holding. |
Q3 update tomorrow |
“Brisk” pre-letting of London offices expected, analysts say |
BOFA CUTS DERWENT LONDON PRICE TARGET TO 3,170 (3,470) PENCE - 'BUY' |
Canny investors are betting the London office market isn't as dead as feared. Witness British Land, Land Securities and Great Portland Estates |
From LAND update...
On the whole however, Landsec painted an optimistic picture about its retail assets, despite its regional shopping centres being among the worst-hit by the pandemic.
Landsec also was bullish about the "quality of the central London portfolio", which accounts for 64% of its property assets by value.
Alliance News |
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