Tellimer

GB : Real Estate Investors - A West Midlands recovery play

We expect Real Estate Investors to return to growth in FY21 (+6% total accounting return), barring any major disruption to the roadmap out of lockdown. The majority of returns will be delivered by dividend income, underpinned by solid rent collection >90%. Vacancy may increase further near term, but any confidence returning to the West Midlands property market could see 2021 become a tale of two halves. Net LTV should reduce for completing sales, also helped by better sentiment and filling voids. A 31% discount to spot NAV looks attractive given the relative security of income that supports an 8% prospective dividend yield for FY21, and a business returning to TAR growth.


Most Viewed See latest
Disclosures

This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not con...

Full Tellimer disclaimers