Retail park developer LXB Retail (LXB) has had a busy year, but much of its work isn't reflected in these full-year results. In particular, the sale of various assets in Greenwich to Aberdeen Asset Management, announced alongside the half-year results in June, should take adjusted book value to 131p, according to house broker Oriel Securities. But the deals are only due to complete this month, so the profits won't flow through to the balance sheet until March.
As it was, adjusted book value per share stood at 116p at the end of September - up 5 per cent over the year, thanks to various first-half deals. The company expects to have completed the bulk of its development work by September 2014, giving a book value of 165p, forecasts Oriel.
LXB's business model is to negotiate the Byzantine planning process for out-of-town retail parks, sign up tenants on long leases and then sell the developments to yield-hungry institutional investors. There was no hard news on further asset sales, but chairman Phil Wrigley did note that the company was in "advanced discussions" with three institutions to sell three sites for more than £160m in total. He also said the company had lettings worth £2.81m a year in rent in solicitors' hands and credible offers for a further £4m.
LXB RETAIL PROPERTIES (LXB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 123p | MARKET VALUE: | £266m | |
| TOUCH: | 123-125p | 12-MONTH HIGH: | 127p | LOW: 105p |
| DIVIDEND YIELD: | nil | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 6% | NET DEBT: | £0.16m | |
| INVESTMENT PROPERTIES: | £215m | |||
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 94.2 | -1.6 | -1.39 | nil |
| 2011 | 108 | 19.2 | 10.3 | nil |
| 2012 | 111 | 9.72 | 3.71 | nil |
| 2013 | 116 | 11.3 | 4.64 | nil |
| % change | +5 | +16 | +25 | - |
Ex-div: - Payment: - | ||||
