Land Securities Share Discussion Threads

[barnes4] 07/11/2022 13:22

Is it 6 pounds today?

[barnes4] 07/11/2022 13:22

Is it 6 pounds today?

[barnes4] 07/11/2022 12:48

Looks like 6 quid is about to return

[giltedge1] 27/10/2022 09:56

Yes but Gilt yields are falling, so price up 2% today & will continue my guess good value up to £6.00.

[williamcooper104] 26/10/2022 19:41

That's been true in past recessions; but WFH plus prime property not yet anywhere repriced for higher gilts means it mightn't be true this time - plus in a deep consumer recession retail tenants are now used to just not paying the rent; and what's a landlord to do when most of the industry isn't paying rent That said; would be more surprised than not it LAND (BL too) stay at these levels/fall much further and don't get taken private; too much dry PE money and a $7-9bn fund can easily fund a buy and break up

[giltedge1] 26/10/2022 19:34

Apparantly LAND was offered over £ 1 Billion for Moorfields back in January, but decided to market instead, must be the most expensive marketing campaign in history - £200M. Anyway, besides that slip up in a good position as in past recessions grade A offices have held up well as trophy assets for Foreign Investors, so one of the few property companies in offices that will have liquidity.

[williamcooper104] 28/9/2022 09:41

Yep - have to give them credit for that

[williamcooper104] 27/9/2022 22:37

Also there's loads of PE dry powder still about At some point a break up/buy out becomes compelling Once PE too small and LAND plus BL too big But they could easily digest them now

[essentialinvestor] 27/9/2022 22:37

Their recent large asset sale very well timed!.


Remember gearing impacts NAV on the downside during falling values.

[williamcooper104] 27/9/2022 22:09

LAND has got an excellent balance sheet with well laddered debts But agree could easily fall further

[quepassa] 27/9/2022 21:56

It's not nonsense.

It's reality.

And the sky-rocketing interest rates will hit new financing and existing floating-rate financing costs hard.

When the sector tide is fast going out, it's very hard to swim against it.

7% yield sounded great a week ago. Now gilts are yielding 4.5% for a risk-free investment with the strong likelihood of gilt yields rising even further when the BoE increases rates again, as it soon will do. Gilts at 6% are being widely forecast which makes real estate at 7% look less enticing.

It's got further to fall in the ongoing rout. The market hasn't bottomed yet.

Land is a great company but the market does what the market does, irrespective of Land's credentials.

Good Luck All.

ALL IMO. DYOR.
QP

[panache1] 27/9/2022 21:26

It's a nonsense. LTV is 30% and the portfolio is practically fully let. The share price has dropped from £10 pre pandemic in 2020 to £5 now. I think it's a bit too much and hopefully oversold. At this price it's also offering a 7% yield. DYOR

[superiorshares] 27/9/2022 20:26

I invested in this at a tad under 8 pound
Thankfully I sold out at a tad under 7

What the hell is going on ?
I understand the present market turmoil but aren't we getting a bit too cheap here ?

[1nf3rn0] 22/9/2022 06:58

Misses this lunchtime RNS yesterday. Looks like a good move and decent price considering the environmentLandsec and Lendlease exchange contracts on 21 Moorfields for £809m Landsec announces that it has exchanged contracts for the sale of 21 Moorfields, EC2 to an investment vehicle managed by global real estate and investments group, Lendlease (ASX:LLC) . The total consideration for the sale amounts to £809m, which, after outstanding development-related items results in a net cash receipt to Landsec of £733m.  Rothesay is providing financing for the acquisition with a 10 year senior term loan. 21 Moorfields is a premium 568,500 sq ft London office development fully pre-let to Deutsche Bank AG (DB) on a 25 year lease, with an annualised net rent of £38m. Built directly above Moorgate station, the asset is targeting sustainability ratings of BREEAM Excellent and LEED v3 Gold. Landsec will retain the responsibility for completing the development, with practical completion expected in Q1 2023. Lendlease will manage the investment vehicle , on behalf of its investment partners including Australia's TCorp and its own minority interest. The total consideration of the disposal represents an effective 9% discount to the March 2022 value, yet crystallises an anticipated development profit of £ 145m, representing 25% profit on cost. The sale is in line with Landsec's strategy to recycle capital out of mature London officesand reduces the company's loan to value from 34% to 30% based on a pro-forma March 2022 balance sheet, further strengthening its strong financial base. Following its strategic review in late 2020, Landsec has now sold £1.8bn of London offices at an average yield of 4.35%. Completion of the transaction is expected to take place in the coming week and the net proceeds of the disposal will initially be used to pay down debt. Landsec's low financial leverage post the sale of this profitable development provides the company with significant flexibility to invest in future opportunities with a higher forward return. The company maintains its guidance on earnings growth provided in the full year results statement in May

[essentialinvestor] 16/9/2022 16:10

Some speculative buying before next week's budget this afternoon?.

[orinocor] 16/9/2022 15:51

The reason for the drop below 600p earlier was a not from Goldman Sachs who have put a 500p target on LAND. That looks completely mad and I'm happy to see the shares recover most of the drop.

[tday] 25/8/2022 11:20

In 2007 the share price was over £23. Seven years ago it was £13. Currently it is under £7. Let's hope the new CEO's strategy works.

[orinocor] 12/7/2022 10:59

British Land, Landsec and Hammerson were all under the cosh on Tuesday after RBC Capital Markets downgraded its stance on the shares, as it took a look at the London office and UK retail property markets.

The bank cut British Land to ‘underperform’ from ‘sector perform’ and slashed the price target to 375p from 475p.

"Our more cautious view of London office and UK retail property markets negatively impacts our forecasts for British Land," it said. "Furthermore, we believe a more negative macro scenario appears slightly at odds with management’s view of their markets, increasing the potential negative impact to British Land's returns.

"While we believe in more demanding tenants leading to wide-ranging trends within certain property markets, our view is it is unlikely to be supportive of attractive development returns near-term and only benefits a proportion of most REITs' existing portfolios."

Landsec was cut to ‘sector perform’ from ‘outperform217; and the target price reduced to 675p from 950p.

RBC said Landsec has made good progress in starting to implement its CEO's new strategy, but that a deterioration in the macro environment will temporarily slow further progress.

"At the same time, we expect Landsec to be negatively impacted by a weaker macroeconomic environment given a relatively high level of variable rents in its retail/leisure businesses and exposure to more economically sensitive London office markets."

[essentialinvestor] 04/7/2022 09:00

Hi Nick and thanks for the view - my best guess on markets is we
see a low perhaps in late autumn and would expect earnings outlooks to markedly
dim around September time, if not sooner. Predictions fraught with difficulty.. etc!.

[nickrl] 01/7/2022 22:59

LAND have c£325m committed to new office development and whilst biggest development at Moorfields is largely pre let the rest are speculative. They also have c1B ready to go developments but IMV they need to dial back on progressing any of them given uncertainty on lettings, unless they get a pre let, as well as issues with nailing down costs with contractors currently. I have yield at 5.7% and divi is well covered at the cash level on a discount of 38%. For sure outlook is uncertain but seems a pretty distressed outlook

[essentialinvestor] 01/7/2022 17:20

Bought a small amount today.

[philanderer] 16/2/2022 14:06

Questor: this property fund's shift away from London means there's gains to be had

Questor share tips: Land Securities trades on a 22pc discount, giving a good base for share price growth

[superiorshares] 02/2/2022 03:50

William Cooper 104
Sorry all of that is way too high brow for me . I'm in because, my simplistic view says if Blue water fails and all that London office space fails , you can kiss goodbye to pretty much everything else anyway.
I agree with you on local Authorities... Idiotic , a total understatement !... I will go as far too say " They are part of the problem " as far as Britain goes .
My gut tells me in ten years time , I will have done alright .. nothing spectacular but I will have done alright.

[williamcooper104] 02/2/2022 01:58

It's IMO investable now as the retail red books reflect actual transaction evidence created by selling assets to grown ups Before red book values were held up by idiotic local authority's over paying for rubbish shopping centres