Shares in Midlands industrial landlord Mucklow (MKLW) have leapt this month to a new post-crisis high of 419p. They now trade at a 40 per cent premium to last December's net asset value - a rating otherwise unheard of among London-listed real-estate investment trusts. There was nothing in the first-quarter trading update to justify the optimism, so we remain of the view, first articulated in November (Sell, 355p, 1 Nov 2012), that holders should take profits.
Occupancy improved marginally, rising from 93.5 per cent to 94 per cent, with a further 1.5 per cent of space under offer. Chairman Rupert Mucklow describes the lettings market as "patchy". The investment market has meanwhile been throwing up more opportunities than previously - implying falling prices - and the company said it expected to make acquisitions by the end of June. With new debt packages and gearing of just 38 per cent at the end of April, Mucklow can easily afford to increase its debt levels.
