Total income was largely unchanged last year at Songbird Estates – there was no repeat of last year's exceptional gains, either – £155.1m from selling investment properties and £144.5m of compensation received from tenant, Lehman Brothers, after it went bust. There was a net portfolio revaluation uplift of £63.7m, but that was still way down on last year's £327.9m. However, with an exciting development pipeline, the shares – trading at about double the sector average discount to net asset value – still look far too cheap,.
Songbird is actually a holding company whose sole asset is a 69.3 per cent stake in Canary Wharf Group, and there have been some significant developments during the year – that included taking full control of the Wood Wharf joint venture, with planning consent on 4.6m sq ft of development. Moreover, together with existing sites, there is now scope for 9.3m sq ft of further development. Indeed, company secretary John Garwood is especially upbeat about the positive impact on values in Canary Wharf when Crossrail eventually arrives. New developments around the railway station have been started and will add significantly to the existing retail portfolio.
Broker Peel Hunt expects adjusted net asset value of 187p for 2012 (from 190p in 2011).
| SONGBIRD ESTATES (SBD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 112p | MARKET VALUE: | £857m | |
| TOUCH: | 110-116p | 12M HIGH: | 161p | LOW: 102p |
| DIVIDEND YIELD: | nil | DEVELOPMENT PROPERTIES: | £292m | |
| DISCOUNT TO NAV: | 41% | |||
| INVEST PROPERTIES: | £4.51bn | NET DEBT: | £3.22bn | |
| Year to 31 Dec | Net asset value (p)* | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 215 | 182 | 22.3 | nil |
| 2008 | 63.0 | -1829 | -234 | nil |
| 2009 | 168 | 335 | 57.7 | nil |
| 2010 | 187 | 464 | 41.3 | nil |
| 2011 | 190 | -213 | -9.00 | nil |
| % change | +2 | - | - | |
Ex-div:- Payment:- *Adjusted | ||||
