 Crystal Amber have gone below 3%
From citywire
UK activist investor Richard Bernstein reduced his holding in the UK’s largest listed residential landlord Grainger (GRI), which recently reported a 39% jump in earnings growth, benefiting from record levels of renting.
Bernstein and co-manager Jonathan Marsh reduced their stake to below 3% of the business. The company’s share price is up 19.5% over the last six months. The shares are held in their £214.5 million Crystal Amber fund.
Grainger recorded a 13% rise in pre-tax profits in the six months to 31 March to £41.2 million, from £36.6 million year-on-year.
In its half-year results, CEO Helen Gordon said the company is expecting to complete a new private rental sector building every two months over the next year and has secured £439 million from a total £850 million target set for 2020.
She added: ‘Our strategy to grow rents and simplify and focus the business puts Grainger in a strong position to deliver further sustainable income led growth.’ |
its a transforming operation - a long way to go and a lot longer to prove that this bandwagon that they were a bit late to jump on will prove to be the cash cow that the regulated tenancy market was for so much of its history. |
Buy in todays IC
"Forget the old Grainger (GRI), the manager of a stodgy regulated-tenancy property portfolio, and say hello to a transformed operation focused on the private rental sector (PRS), currently one of the hottest parts of the housing market. With a chronic shortage of new housing, demand for rental accommodation is growing all the time, and Grainger is more than halfway towards its aim of investing £850m by 2020" |
indeed, they have reduced exposure in the regions which is ironic as much of their new PRS investment appears to be in that direction. interesting that the last six months sales were only 2% above their last September's valuation - the lowest increase I've seen for a long time. good to see the increasing dividend though |
One thing to watch though, is that a large percentage of their real estate is not surprisingly in central and inner city London, where (as you probably know) there are concerns that house prices are overvalued and set to decline (or at least pause) for a while |
Grainger not really in a similar business to British Land or Daejan -although Grainger are diverting into the PRS sector their wholly assets are manly modest properties let to regulated tenants who have been resident since before 1989 when this tenancy type ended. importantly they have security of tenure and the properties are only sold at open market value when vacant - when the tenant has usually passed away or gone into care. the property assets have to be discounted to reflect the fact that if the company had to be liquidated tomorrow the assets could only be sold with the tenants in occupation. saying that though the company has for years had a share price which doesn't match even its true "discounted" value. good to see the recent rise though and will hopefully step up again when the world knows what the heck Trump is doing! |
Yes, so you just need to read the latest update. The number I suspect you're looking for is the EPRA NNNAV - or 295p/share. |
@Brummy_git: Thanks, but don't they revalue the portfolio to market value every year for the accounts? |
Apollo- Need to look at the open-market value of their assets, not their book value in the accounts |
Can anyone explain why Grainger is valued at a such a high P/B of 1.5? Land Securities is trading at 0.8 and Daejan is on 0.7. Why should Grainger be trading at double their valuations while running a very similar business? |
Great results today I think share price will gain some traction now new strategy seems to be working well |
New 7 year highs ahead of next weeks results. |
Just remember that retreats and hesitations are all part of the journey. Bon voyage! |
Its on its way.
Good to see the confident purchase by the non exec this week. |
Well it has hit Peel Hunts old forecast - let's hope they are on target with their new one. |
Nice upgrade from Peel Hunt.New target 300p from 250p |
Now 235p to buy.
Can see this attacking the 240p range today and high's from 6 months ago. |
indeed. slow to climb but gets knocked back on any old bit of bad news, the trouble with a niche company I guess, perhaps its new direction of PRS focus will provide more stability |
BUY recommendation by Simon Thompson at the IC this week in one of his columns.
Up 10p on the week to 230p.
Not sure why this doesn't get more attention/comment here. |
BUY Recommendations from Investor's Chronicle yesterday and also today in Simon Thompsons' column:
(Subscription might be needed)
Bearing in mind the ex-dividend date I can see these clearing the recent highs and moving on towards the 245p area again by the end of the year.
NAI - DYOR etc. |
Ahead of FY16 earnings
The Co. have been quite positive of late, stating good rental growth has continued, our sales performance has remained strong.
Co. expect to report modest growth in market value of our property assets in second half of year and expect to report high single digit year-on-year growth in NNNAV for full year.
In terms of price action we are at the mean value area on the daily chart but on the 1HR chart we are currently above value. A good result will surly push price into a new distribution area at the 230 level but the 226.26 level could provide some resistance.
On the downside the key support will be at the value are of 220.30 and the low of 214.42
hxxps://uk.tradingview.com/chart/GRI/wcqQFkOD-Ahead-of-FY16-earnings/ |
Trading statement today, guiding to upper end of expectations |
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