RE: Share Prophets Tip1 Jun 2016 17:38
Ah - apparently not allowed to add a link here. Test of what Malcolm Stacy has to say today as follows:
Hello Share Crashers. I don’t want to worry Brexit fans too much, but did you know that my bookie is offered me 4 to 1 on Brits voting us out of Europe? And the odds for staying in - 6 to 1 on. If we come out, property prices may fall as rich Europeans, and possibly the rest of the world demures from buying stuff over here. As the bookies think we will be staying in - often a better guide than opinion polls - it seems to me that we might look for property companies to invest in.
One such opportunity could be New River Retail (NRR) which, obviously enough, specialises in sites for big stores. It’s anticipated by some that its assets will see a big jump in value when it reports this week.
It currently has assets worth over £1 billion and 33 shopping centres. It’s been in the placing game - raising £300 million in 2015. Both offers attracted more buyers than it could accommodate.
It’s also on the acquisition trail. The Broadway Shopping Centre and Broadway Square Retail centre in Bexleyheath, south-east London, were recently snapped up for £120.25 million. And there are more big purchases to come.
In the deep mid winter the shares hit 360p. They fell to about 307p in the spring. And as I write, they are about 320p. You can often find property shares rising when big acquisitions are factored in. And I suppose I’m looking at a target of 400p fairly soon.
The yield I have is tasty at 5.64%. The growth is impressive, too. Operating profits were less than £5 million in 2011 and nearly £23 million last time.
As I said the share price may wobble if we vote ourselves out of the EU. But I guess that applies to all property firms.
Though not to the Punter’s Return.
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