Join our community of smart investors

Simon Thompson's property pick primed to re-rate

Having outperformed its peers by a mile since its IPO, this company still has real prospects of delivering bumper capital growth.
February 21, 2020

Although it has produced a net asset value (NAV) accounting total return of almost 100 per cent since it listed, this company's shares can be bought at a 30 per cent discount to spot NAV. That discount comes despite a raft of new leases on its property portfolio, which is driving rental income up and underpins valuation gains. 

With the benefit of a modestly geared balance sheet and over £40m headroom on a new low-cost banking facility, the company has the firepower to make further value-accretive property acquisitions to enhance shareholder returns. It's a win, win situation that is simply being mispriced by the market. 

Download PDF