Quintain Estates (QED) has put the hours in and is ready to hit the pitch. After years in the corporate wilderness, the developer has pruned its property portfolio, reduced its debt and come up with a strategy based on three complimentary business lines.
First, it wants to expand its portfolio of income-producing assets so that it is less reliant on lumpy development returns. Its portfolio is still dominated by assets around Wembley Park, notably the SSE Arena and the London Designer Outlet shopping centre. But it spent the year buying assets in other parts of London; these contributed rents of £4.1m.
Second, it builds and sells homes on its vast land holdings around Wembley. It is currently building out the first phase of a development around Wembley Park tube station, and has now sold 251 of the 284 homes for private ownership. Planning permission for phase two was achieved in February, and 70 of the 211 private homes are already sold at a higher price per square foot. The company has a pipeline that should deliver 1,200 further dwellings over four years.
Finally, Quintain is increasingly renting out homes, too. Its rental business, which was seeded with 141 apartments from the Wembley Park development last April, is expected to manage between 500 and 1,000 homes within five years.
Analysts at Peel Hunt expect adjusted NAV of 130p next March.
| QUINTAIN ESTATES & DEVELOPMENT (QED) | ||||
|---|---|---|---|---|
| ORD PRICE: | 107p | MARKET VALUE: | £564m | |
| TOUCH: | 107-107.5p | 12-MONTH HIGH: | 108p | LOW: 75p |
| DIVIDEND YIELD: | nil | TRADING PROP: | £23.4m | |
| DISCOUNT TO NAV: | 14% | |||
| INVESTMENT PROP: | £778m | NET DEBT: | 31% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 116 | -48.1 | -6.7 | nil |
| 2012 | 110 | -43.5 | -6.8 | nil |
| 2013 | 104 | -50.4 | -7.9 | nil |
| 2014 | 115 | 4.7 | 10.2 | nil |
| 2015 | 122 | 40.7 | 7.2 | nil |
| % change | +7 | +766 | -29 | - |
Ex-div: na Payment: na | ||||
