Canaccord Genuity reiterates buy on Land Securities Group, target raised from 1407p to 1563p.

StockMarketWire.com
Land Securities Group's revenue profit and net asset value per share rose in the year to the end of March and the recommended final dividend of 10.55p takes the total to 35.0p - up 9.9%.

Revenue profit rose by 10% to GBP362.1m and basic NAV per share increased by 10.3% to 1,482p.

Group LTV ratio was 22.0% compared with 28.5% a year ago and pre-tax profits of GBP1,335.6m were down from GBP2,416.5m.

Chief Executive Robert Noel said: "We are pleased to report a strong performance for the year. Revenue profit and net asset value per share are up, lease terms are longer and, as planned, speculative development exposure and net debt are lower. Continued leasing momentum in our development programme combined with smart asset management and balance sheet discipline has put the business in a strong position. Our confidence is demonstrated by a proposed 9.9% increase to the dividend.

"In London, we continued to lease up our well timed and well executed speculative development programme with over 0.5m sq ft of new lettings and made progress on our future pipeline with 0.9m sq ft of planning consents. We also took advantage of the strong market conditions during the year to sell some assets. "In Retail, we have sold selectively. Our operational focus is delivering results, with voids down and both footfall and same store retailer sales up in contrast to national benchmarks. Our development at Westgate Oxford looks very promising with a healthy level of retailer support and is almost 50% pre-let 18 months ahead of opening. "Our strategy is delivering value for our shareholders, great space for our customers and positive change for our communities. We have a strong balance sheet with better assets and longer income streams. Despite the current political and economic uncertainty, Land Securities is well placed."

StockMarketWire.com
Barclays Capital as revisited its stance on the European Real Estate sector, following the surprising result of the UK referendum and the ensuing unanswered questions and unknowns.

Equity research analysts said: "As always, markets have reacted negatively to uncertainty.

"We believe that those who can look through the volatility and uncertainty can underwrite investments in the UK REIT space on large discounted entry points that we believe already reflect a very hard landing for the UK economy and an acrimonious divorce from the EU."

Land Securities (LON:LAND) has been upgraded to overweight (from equal weight), while Capital & Counties (LON:CAPC) was downgraded to equal weight (from overweight).

Price target have been cut to 1,230 pence a share (from 1,370 pence) and to 320 pence (from 400 pence), respectively.

StockMarketWire.com
At Land Securities' AGM, Chief Executive Robert Noel will make the following statement:
"We expect business uncertainty to persist until there is more clarity on both the timing and terms of the UK's exit from the EU.

"This process may take some time.

"Demand from occupiers is likely to be subdued until confidence returns and this may have an impact on rental values.

"Land Securities' portfolio of quality office properties and retail destinations, together with our very low leverage, high levels of occupancy and long lease terms by historical standards, put us in an excellent position.

"With our strong cash flows, we have the confidence to propose a 9.9% increase in the total dividend for the year and our significant undrawn banking facilities leave us well prepared for future asset purchases."

Big buys by one Director... could this be a signal? Yield is abt 4% so not excessive...but PE ratio 64 = too high for me. So I wonder why one director would put so much cash into this, currently 933p.... thoughts?
EDIT (6Dec2017)- Thanks CC - but a "huge disc. to NAV" might suggest it's the valuation that's wrong? Land /properties are only "Worth" what the Market will stand and time means investors have longer to wait. Their PE ratio at 64 may be wrong, but that says the income is not justifying the spice...er, IMHO. But then I'm often wrong...look at [ASOS] and BitCoin... both completely mad, IMHO.

Huge discount to NAV as with the rest of the sector. 4.4% dividend which is secure.

Market seems to be pricing a meltdown in this sector and I read some note the other day suggesting LAND may not be able to sell assets at the NAV in it's books, but since the discount is somewhere between 30-40%, a couple of percent write down in asset value doesn't bother me.

BLND, LAND, INTU and HMSO all look cheap to me.

I have lots of INTU and some BLND. Sector seems to have turned yesterday - not sure if Brexit related or Santa rally. INTU at 7.2% dividend reflecting perceived gearing

I think this one is really interesting after the INTU news this morning as the share price is only slightly above the 925 area the director bought at the other day and lots of sells are still going through. If it pulls back on a bad day on FTSE it's now on my list.

I've bought a few HMSO at 512.5 this morning which I'm happy to sit on.

Credit Suisse Neutral 942.75 1140.74 1035.00 Downgrades


Back on my list.

Dipped this morning. Classic shake and fake. I didn't take any though as I've got enough INTU, BLND and HMSO that I need a really stupidly low price to take any more.

JP Morgan Cazenove today reaffirms its overweight investment rating on Land Securities Group Plc (LON:LAND) and set its price target at 1200p.

Upcoming events:
15 May 2018 - Preliminary results announcement

12 July 2018 - Annual General Meeting

13 November 2018 - Half-yearly results announcement