A new management team and a booming London property market have transformed the fortunes of Quintain Estates (QED). Specifically, its development in Wembley is now starting to generate a substantial revenue stream.
Rental income has been boosted by a gross £6m a year following the last year's opening of the London Designer Outlet at Wembley. That's ideally placed to benefit from event days held at Wembley Stadium, which typically increase footfall by almost a half and turnover by 27 per cent. The opening of a 1,300 seat theatre in early 2016 will have a further positive impact, too. Meanwhile, at the Hilton London Wembley Hotel - in which Quintain retains a half share - occupancy levels grew to 82.5 per cent, while higher average room rates lifted first half revenue by 10 per cent.
With 475 homes under construction, the development pipeline has been expanded to over 1,700 homes - that's just a third of the 5,000 homes that it holds outline planning consent for. Demand for homes has been strong and unaffected by the slowdown in the central London housing market. Average apartment prices were £366,000, with buyers attracted by good transport connections to the City, including a 24-hour weekend underground service that started in September.
Peel Hunt is forecasting full-year adjusted book value of 123p (from 114p in 2014).
QUINTAIN ESTATES & DEVELOPMENT (QED) | ||||
---|---|---|---|---|
ORD PRICE: | 95p | MARKET VALUE: | £500m | |
TOUCH: | 94-95p | 12-MONTH HIGH: | 108p | LOW: 75p |
DIVIDEND YIELD: | nil | TRADING PROPERTIES: | £5.9m | |
DISCOUNT TO NAV: | 19% | |||
INVESTMENT PROPERTIES: | £751m | NET DEBT: | 29% |
Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2013 | 106 | -0.8 | 1.3 | nil |
2014 | 117 | 12.4 | 2.1 | nil |
% change | +10 | - | +62 | - |
Ex-div: - Payment: - |