Shares in St Modwen Properties (SMP) are up 96 per cent so far this year because investors have treated it like a housebuilder rather than a property developer. The company has a vast land bank, accounting for 37 per cent of its portfolio by value, which it used to sell with planning permission to housebuilders. But it has crept up the value chain, first setting up a joint venture with Persimmon, then launching its own housebuilding arm, St Modwen Homes. In the year to end November, it sold 276 homes, with 60 more reserved - of which the joint venture accounted for under half.
The company says that, in 2011-12, residential planning gains and asset management more than offset valuation writedowns in its secondary property portfolio. Broker Espirito Santo expects year-end net asset value of 265p (from 264p in May 2012).
