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British Land Finals.

Practical discussions about equity High-Yield Portfolios (HYP) for income
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idpickering
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British Land Finals.

#221683

Postby idpickering » May 15th, 2019, 7:10 am

Robust financial performance

· Underlying EPS down 6.7% to 34.9p due primarily to one off surrender premia received last year and impact of asset sales; buybacks contributing 1.2p

· LFL rental growth of £15m; more than offsetting the £14m impact of Retail CVAs

· Portfolio value down 4.8%; Retail down 11.1%, Offices up 1.1% and developments up 10.8%

· EPRA NAV down 6.4% at 905p, with buybacks contributing 10p

· Full year dividend up 3.0% at 31p; total accounting return -3.3%

· Proposed FY20 dividend increase of 3%

And later;

Dividends

As previously announced, we have increased the dividend by 3.0% for the year to 31 March 2019 bringing the full year dividend to 31 March 2019 to 31.0p. The dividend pay-out ratio is 89% for the period (2017/18: 80%). British Land will recommend to shareholders a final dividend payment for the year ended 31 March 2019 of 7.75p. Subject to approval by shareholders, payment will be made on 2 August 2019 to shareholders on the register at close of business on 28 June 2019. The final dividend will consist of two components: a Property Income Distribution of 3.875 pence and a Non-Property Income Distribution of 3.875 pence. No SCRIP alternative will be offered.



https://www.investegate.co.uk/british-l ... 00120373Z/

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Re: British Land Finals.

#221780

Postby Breelander » May 15th, 2019, 12:17 pm

idpickering wrote:
... Proposed FY20 dividend increase of 3%


Thanks for this, I hold. Nice to see guidance on next year's dividend too.

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Re: British Land Finals.

#221800

Postby idpickering » May 15th, 2019, 1:19 pm

Breelander wrote:
idpickering wrote:
... Proposed FY20 dividend increase of 3%


Thanks for this, I hold. Nice to see guidance on next year's dividend too.


You're welcome Breelander. I do intend topping up soon as they're underweight in my HYP. I have been holding off because of Brexit, but maybe I should just ignore that debacle and proceed anyway?

Ian.

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Re: British Land Finals.

#221804

Postby Arborbridge » May 15th, 2019, 1:34 pm

I see the SP has taken fright recently, though I'm sure why. Perhaps it's the retail malaise which has affected part of their portfolio, but it was quite a sudden deterioration.

I would be happy to topup, except that I'm fairly "full" at the moment.


Arb.

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Re: British Land Finals.

#221809

Postby idpickering » May 15th, 2019, 1:44 pm

Arborbridge wrote:
I would be happy to topup, except that I'm fairly "full" at the moment.


Arb.


I'm in good company then Arb, thank you. I have just set my account to buy slices of BLND and BA. next week. As I said in my last post above, the Brexit debacle has distracted me, but no more. SI and all that. ;)

Ian.

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Re: British Land Finals.

#221853

Postby MDW1954 » May 15th, 2019, 5:28 pm

idpickering wrote:
Arborbridge wrote:
I would be happy to topup, except that I'm fairly "full" at the moment.


Arb.


I'm in good company then Arb, thank you. I have just set my account to buy slices of BLND and BA. next week. As I said in my last post above, the Brexit debacle has distracted me, but no more. SI and all that. ;)

Ian.


Arb & IDP:

As I've remarked before, I think there are better REITs around than BLND at the moment. BBOX, PHP, ESP ... all worth a look, IMHO.

MDW1954

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Re: British Land Finals.

#221854

Postby Arborbridge » May 15th, 2019, 5:34 pm

MDW1954 wrote:
idpickering wrote:
Arborbridge wrote:
I would be happy to topup, except that I'm fairly "full" at the moment.


Arb.


I'm in good company then Arb, thank you. I have just set my account to buy slices of BLND and BA. next week. As I said in my last post above, the Brexit debacle has distracted me, but no more. SI and all that. ;)

Ian.


Arb & IDP:

As I've remarked before, I think there are better REITs around than BLND at the moment. BBOX, PHP, ESP ... all worth a look, IMHO.

MDW1954


You could well be right, and I'll look at those if I need another share. At present, BLND is in the HYP and I don't chop and change easily - as one would expect of a HYPer 8-) Might swap a Ute for one, though :?

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Re: British Land Finals.

#221867

Postby Arborbridge » May 15th, 2019, 6:25 pm

MDW1954 wrote:

Arb & IDP:

As I've remarked before, I think there are better REITs around than BLND at the moment. BBOX, PHP, ESP ... all worth a look, IMHO.

MDW1954


Looking into that again, I see the yield is still rather low for a HYP. Interestingly, it is listed both on AIC and Morningstar as an IT, whereas BLND isn't. This is a pendantry perhaps, but the yield is far more aligned with my IT basket than it is with my HYP.


Arb.

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Re: British Land Finals.

#221874

Postby MDW1954 » May 15th, 2019, 6:56 pm

Arborbridge wrote:
MDW1954 wrote:

Arb & IDP:

As I've remarked before, I think there are better REITs around than BLND at the moment. BBOX, PHP, ESP ... all worth a look, IMHO.

MDW1954


Looking into that again, I see the yield is still rather low for a HYP. Interestingly, it is listed both on AIC and Morningstar as an IT, whereas BLND isn't. This is a pendantry perhaps, but the yield is far more aligned with my IT basket than it is with my HYP.


Arb.


Arb,

You don't say what "it" is. BBOX has a yield of 4.5%, according to HL just now, PHP 4.1%, and ESP 5.4% -- the latter identical to BLND.

I hold all of them, and feel more diversified as a result.

MDW1954

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Re: British Land Finals.

#221893

Postby Arborbridge » May 15th, 2019, 7:38 pm

MDW1954 wrote:
Arborbridge wrote:
MDW1954 wrote:


Looking into that again, I see the yield is still rather low for a HYP. Interestingly, it is listed both on AIC and Morningstar as an IT, whereas BLND isn't. This is a pendantry perhaps, but the yield is far more aligned with my IT basket than it is with my HYP.


Arb.


Arb,

You don't say what "it" is. BBOX has a yield of 4.5%, according to HL just now, PHP 4.1%, and ESP 5.4% -- the latter identical to BLND.

I hold all of them, and feel more diversified as a result.

MDW1954


Sorry, the "it" was BBOX :oops:

BBOX is rather like 3IN - both are listed as ITs on AIC. So is ESP, by the way. The yield of BBOX is well below my HYP radar point, though ESP would be OK.

Arb.

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Re: British Land Finals.

#221903

Postby AJC5001 » May 15th, 2019, 8:32 pm

Arborbridge wrote: The yield of BBOX is well below my HYP radar point, though ESP would be OK.

Arb.


What a pity ESP is in the FTSE Small Cap index, then (Market Cap £557.67m according to Digital Look http://finance.digitallook.com/cgi-bin/dlmedia/security.cgi?username=achannin&ac=209650&csi=32780885 ) making it ineligible here. :lol:

Adrian

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Re: British Land Finals.

#221909

Postby Arborbridge » May 15th, 2019, 9:16 pm

AJC5001 wrote:
Arborbridge wrote: The yield of BBOX is well below my HYP radar point, though ESP would be OK.

Arb.


What a pity ESP is in the FTSE Small Cap index, then (Market Cap £557.67m according to Digital Look http://finance.digitallook.com/cgi-bin/dlmedia/security.cgi?username=achannin&ac=209650&csi=32780885 ) making it ineligible here. :lol:

Adrian


That was another point I didn't mention - it's a bit small for me. AJ Mucklow is also a little on the small side, though it seems a good company. BBOX to my mind is the preferable one overall, though I like Mucklow in other ways.

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Re: British Land Finals.

#221922

Postby Alaric » May 15th, 2019, 9:49 pm

AJC5001 wrote: making it ineligible here.


On a very brief look, hasn't it (ESP) cut its dividend in the recent past?

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Re: British Land Finals.

#221949

Postby MDW1954 » May 15th, 2019, 11:05 pm

AJC5001 wrote:
Arborbridge wrote: The yield of BBOX is well below my HYP radar point, though ESP would be OK.

Arb.


What a pity ESP is in the FTSE Small Cap index, then (Market Cap £557.67m according to Digital Look http://finance.digitallook.com/cgi-bin/dlmedia/security.cgi?username=achannin&ac=209650&csi=32780885 ) making it ineligible here. :lol:

Adrian


The last time I mentioned those REITs (and others), I added a mention to the effect that not all of them might be FTSE 350.

Apologies for not remembering ESP's status correctly. I've probably omitted an eligible FTSE 350 share that I should have included! Trouble is, I can't remember which thread it was!

MDW1954

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Re: British Land Finals.

#221951

Postby MDW1954 » May 15th, 2019, 11:12 pm

Arborbridge wrote:BBOX is rather like 3IN - both are listed as ITs on AIC. So is ESP, by the way.

Arb.


Sorry, Arb: you keep saying this, and I'm obviously missing the point. Why does it matter that that the AIC lists them as ITs?

MDW1954

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Re: British Land Finals.

#221978

Postby Arborbridge » May 16th, 2019, 7:22 am

MDW1954 wrote:
Arborbridge wrote:BBOX is rather like 3IN - both are listed as ITs on AIC. So is ESP, by the way.

Arb.


Sorry, Arb: you keep saying this, and I'm obviously missing the point. Why does it matter that that the AIC lists them as ITs?

MDW1954


Well, I'm not sure it "matters" to most people, but in a HYP aren't we supposed to keep mostly to bog standard ordinary companies? The REIT is an odd animal, but supposing - for example - one of them turns out to be a company which buys shares and invests in other companies, to my mind that is an IT not a trading company in the sense which HYP is looking for.

I'm assuming (in my ignorance of the details) that there must be a good reason why 3IN and BBOX are listed as investment trusts both on AIC and Morningstar. If those organisations categorise them as ITs, I'm happy to accept their verdict.

As to why it matters to me? Well, as you know, I run a HYP and an IT basket so at the very least I need to consider in which portfolio I should put any new purchase. I don't "do" ITs in my HYP, and the other difference is simpy about the yield. The IT basket has a slightly lower yield than the HYP so 3IN and BBOX just wouldn't pass the threshold for the HYP, but might for the IT basket.

An overarching question must also be (as Ian Pickering might observe) do I need another share in either portfolio anyway? Strictly, probably not. With something over 50 instruments split between the two portfolios, I think the answer is "no" - except if it's swap "one in, one out" or greater diversity, or some other added strength.

Both Mucklow and BBOX seem good companies: whether I have "room" for them, and whether they add anything worthwhile is the question I'm wrestling with. Incidentally, I had the same tussle many years back with Interserve, which was promoted quite enthusiastically by several people on the TMF board. I had never heard of it before and I was grateful to posters for bringing it to my attention: the choice worked very well for me for many years, being consistently my most successful company: but looked how that turned out :(
Effectively the same happened with TESCO which was all the rage at one time, and though I didn't much like the company, bought the shares when the yield increased to something reasonable on the grounds that it had such a good dividend record and was "best in class".

Given the context of the above, you can maybe understand my questions and thoughts.

Arb.

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Re: British Land Finals.

#221982

Postby idpickering » May 16th, 2019, 7:40 am

Thanks for the name check Arb, and I agree with the sentiment of your post. For me, keep it simple, British Land is enough for me, but thank you Malcom anyway.

Ian.

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Re: British Land Finals.

#222004

Postby Alaric » May 16th, 2019, 9:31 am

MDW1954 wrote: Why does it matter that that the AIC lists them as ITs?


The remit of the AIC (Association of Investment COMPANIES) seems to extend beyond ITs. Some, but not all, REITs are listed under their property sectors.

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Re: British Land Finals.

#222014

Postby SalvorHardin » May 16th, 2019, 9:53 am

Arborbridge wrote:Well, I'm not sure it "matters" to most people, but in a HYP aren't we supposed to keep mostly to bog standard ordinary companies? The REIT is an odd animal, but supposing - for example - one of them turns out to be a company which buys shares and invests in other companies, to my mind that is an IT not a trading company in the sense which HYP is looking for.

I'm assuming (in my ignorance of the details) that there must be a good reason why 3IN and BBOX are listed as investment trusts both on AIC and Morningstar. If those organisations categorise them as ITs, I'm happy to accept their verdict.

Don't think of REITs as being investment trusts; classify them as property companies. For example, British Land's assets are not dominated by a portfolio of property company shares and bonds, which is what we'd expect to see if it was an investment trust. Instead British Land owns, builds, develops and trades its own properties.

Unfortunately when REITs were created in the 2006 Finance Act, they used the American term. But in American English "Investment Trust" has a completely different meaning to that in British English.

An example of what I would call an property investment trust is TR Property, which holds about 90% of its assets in the shares of property companies (and REITs).

If Morningstar chooses to classify some REITs as investment trusts, that's their lookout. As the old riddle says: "How many legs does a dog have if you call his tail a leg? Four. Saying that a tail is a leg doesn't make it a leg"

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Re: British Land Finals.

#222044

Postby MDW1954 » May 16th, 2019, 11:05 am

Arborbridge wrote:
MDW1954 wrote:
Arborbridge wrote:BBOX is rather like 3IN - both are listed as ITs on AIC. So is ESP, by the way.

Arb.


Sorry, Arb: you keep saying this, and I'm obviously missing the point. Why does it matter that that the AIC lists them as ITs?

MDW1954


Well, I'm not sure it "matters" to most people, but in a HYP aren't we supposed to keep mostly to bog standard ordinary companies? The REIT is an odd animal, but supposing - for example - one of them turns out to be a company which buys shares and invests in other companies, to my mind that is an IT not a trading company in the sense which HYP is looking for.

Arb.


Arb,


I fully understand your point about not wanting or needing further shares.

REITs (Real Estate Investment Trusts) are always going to be listed by the AIC if their boards choose to join the AIC.

That said, as SalvorHardin points out, most REITs aren't ITs as we understand them, because they hold assets directly (individual warehouses, shopping centres, or office blocks), and not the shares of property companies, as, say, TR Property does.

Within the HYP context, REITs are fine. TR Property-type ITs are another matter.

MDW1954


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