Hobson: Property Stocks Need Gut Instinct Judgement

THE WEEK: If you have not used up your ISA allowance, get on with it, says Rodney Hobson. By the time you have waded through all the Budget documents it will be too late

Rodney Hobson 21 March, 2016 | 8:14AM

Regular reader of this column Richard Barrand raises the valid point that commercial property developers such as British Land (BLND), Great Portland (GPOR), Hammerson (HMSO) and Land Securities (LAND) tend to have low price/earnings ratios despite being good dividend payers. Commercial property values have not fallen, so why have the shares?

British Land, for example, tumbled from 876p in October to a low of 664p last month, Land Securities from 1352p to 965p and Great Portland from 889p to 684p while Hammerson slid from 703p last May to 535p.

This is in sharp contrast to housebuilders, whose shares have soared in the economic recovery since 2009 to the point where they are, if anything, overvalued.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British Land Co PLC388.00 GBX-3.60
Great Portland Estates PLC627.40 GBX-2.12
Hammerson PLC83.82 GBX-7.26
Land Securities Group PLC566.00 GBX-3.71

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies