Is now the Time to invest in London?

It seems that at the moment people think the biggest Brexit-looser will be London and its real estate market (link bloomberg).

Almost 3 billion pounds has been wiped from the market value of the FTSE 350 Real Estate Investment Trust Index since trading started Monday. Land Securities Group Plc, the U.K.’s largest REIT, tumbled 9.1 percent over the period.

Competitors now prepare to take away jobs (and the required living space) from the City (link)

Of course there are uncertainties and other factors (currency risks) but maybe this is an interesting entering Point? The Problem is, I don’t know much about the UK-Real Estate market or UK-REITs. If you have some favorit UK-REIT or something like that, please let me know!

Some Informations:

  • Some very helpful information about UK-REITs from BPF.org.uk (link) incl. a LIST OF UK-REITs
  • Another “List” from iShares (link) Distribution Yield  as of 05/Jul/2016 3.07%
  • Good Site to get a first impression (incl. dividend yield) about  UK-Companys/REITs at Hargreaves Lansdown (link)
  • Helpful information about UK-REITs from LSE (link)

At least 75% of the group’s profits must derive from that property rental business and at least 75% of the group’s gross assets must comprise assets or cash involved in the property rental business.

 

 

News/Blogs:

  • Article on telegraph.co.uk about Hammerson (link)
  • (Note maybe confirmation bias form myself) Adventuresincapitalism Blog about Brexit/London (link)

…Look at all of the Caribbean islands that have tried to become a finance hub for North America. Capital will always go where there’s liquidity and it’s treated best. With low taxes and the same common first language of all international trade, London will remain the finance hub of Europe…

 

 

Additional Information/Notes:

REITs:


Land Securities

Investors Page (link)

Financial Review (link)

Price:

EPS 2016: 45.7p

Dividend 35.0p
PE-Ratio: 20.1
Yield: 3.8% (hl.co.uk says 3,6%)

And that is interesting: adjusted Diluted Nav Pence per share: 1,434 p

Appropriate discount rate +5% ? see Debt and Coupons (link)

 

AEW UK REIT plc

Dividend yield: 6.08%

 

Hammerson plc

Key financials (link)

 

Derwent London plc

Derwent London plc is the largest central London focused REIT … Our investment portfolio now totals 6.2 million sq ft and is worth £5.0 billion

 

 

Schroder Real Estate Investment Trust Ltd (SREI)

http://www.hl.co.uk/shares/shares-search-results/s/schroder-real-estate-it-plc-ord-shs-npv

Yield 5,51 %

 

 

Developers:


Barratt Developments plc

http://www.barrattdevelopments.co.uk/investors/financial-performance/financial-achievements

2015 annual report (link)

(2Q16 Presentation) Page 8 negative CashFlow!?

Price today: 333.30 GBp

EPS 2015: 45.5 GBp

PE-Ratio: 7,25

Dividend per Share 15.1 GBp

Yield: 4,5%

 

Taylor Wimpey

https://www.taylorwimpey.co.uk/corporate

TW Dividend Information (link)

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5 thoughts on “Is now the Time to invest in London?

  1. Pingback: Notes on two UK Real Estate ETF’s | valuetradeblog

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