Final Results 1023/2417 May 2024 10:46
Not a lot on the message board about this or other Property Reits and it certainly has been a graveyard over the last four years with COVID and rising interest rates. I viewed the presentation on the web by Mark Allan following the RNS. They think the market for the quality end of the market is at, or near, an inflection point. Quality for them means a high end development in a catchment prominent location (e.g. close to transport links) with a mix of retail, office and some residential. They have been selling some of their second tier assets that don't or can't meet these criteria and concentrating on the locations to develop such as Finchley Road and Mayfield, Manchester. They therefore have some cash and borrowing headroom to develop such sites but not enough and will have to bring in other sources of capital. Given the substantial discount to NAV (c.22%) issue of equity is not a viable option.
Earning per share were stable at 50.1p y-on-y but NAV fell by 8.7% reflecting the continued effect of higher interest rates on property values. Rental growth has been good and the dividend is up 2.6%. We were guided to expect slightly lower eps for next year but similar growth in the dividend. The share price fell on the news and the whole sector is out of favour right now. When interest rates do come down and those work their way through to property values I think LAND is going to be looking clever and the share price will recover but not now. A share (a sector) to buy in the Autumn. IMHO