Join our community of smart investors

A Reit royal value play

This undervalued property company offers an attractive dividend yield and prospects of capital growth.
A Reit royal value play
  • 37 per cent discount to spot NAV despite catalysts for asset growth.
  • Attractive estimated reversionary yield.
  • 92 per cent of rent collected in 2020.

Investors are being overly cautious in their valuation of this real estate investment trust. For starters, borrowings are set to plunge over the next two years as the Reit is set to realise £52m of cash, and possibly far more, from the sale of flats at a flagship residential scheme. Development profits from those sales is one reason why NAV is set to reverse the declines seen in recent years.

It’s not the only opportunity for the company, as high collection rates across the portfolio support a reversal of Covid-19 induced asset write-downs taken last year. The high yielding shares are firmly in bargain basement territory.

Download PDF