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Started: 1.ARMANI, 20 Jun 2024 07:31
Last post: londoner7, 20 Jun 2024 09:59
It seems to me a bit like Ford going into competition with Hertz.
The FT’s Lex column raises the key consideration for investors - despite Berkeley’s predictions of a recovery, what does this strategy switch says about the outlook for the core business.
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https://www.ft.com/content/1979a6d5-415a-4f4c-922f-a5f2ddc7539c
Housebuilder Berkeley Group plans to become a landlord as it seeks better returns in a UK housing market with sky-high rents but sluggish demand for new homes.
The FTSE 100 group, which specialises in urban developments and builds around 10 per cent of London’s new homes, on Wednesday announced a strategy to build and rent out some 4,000 homes over the next decade — an increase of 10 per cent on top of its current construction forecasts.
Rob Perrins, chief executive, said the addition to its business was inspired by the “very unusual circumstance” in the UK housing market where “rents have gone up so much and house prices haven’t moved in the same vein” as buyers are hampered by high interest rates and the need for large deposits.
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https://www.ft.com/content/1979a6d5-415a-4f4c-922f-a5f2ddc7539c
Institutional investors, including the likes of Blackstone, are targeting growth in a UK rental sector traditionally dominated by small private landlords. The US investment firm has struck two deals in the past year to buy properties from housebuilder Vistry, worth £1.4bn and covering more than 4,500 homes.
Berkeley said it has already sold around 1,000 homes to institutional investors in rental housing over the past three years. The company said that “adopting a more strategic route to this market will drive best value for these assets” by creating a large, professionally managed portfolio with a record of rental income before trying to sell.
Perrins said he would be flexible about when to sell properties or bring in new investors. “I am completely open and agnostic to how long we hold it,” he said. Berkeley previously built and managed a small rental portfolio of around 900 homes from 2011 to 2014.
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https://www.ft.com/content/1979a6d5-415a-4f4c-922f-a5f2ddc7539c
Last post: bald_eagle, 19 Jun 2024 17:09
Bit of a rollercoaster for SP today.
Berkeley Group reported a slight decline in annual earnings but lifted its forecast for the new year as the housebuilder sees signs the "outlook is improving". Revenue in the year ended April 30 fell 3.4% to GBP2.46 billion from GBP2.55 billion. Pretax profit declined 7.7% to GBP557.3 million from GBP604.0 million. "This is a strong performance in a challenging and volatile operating environment, demonstrating the resilience of Berkeley's business model with its focus on the country's most undersupplied markets," Chief Executive Rob Perrins said. "We continue to see good levels of enquiry for well-located homes built to a high standard of design and quality but recognise that the current lack of urgency in the market is likely to remain until the long-anticipated reduction in interest rates commences. Berkeley continues to benefit from a strong order book and has already secured 80% of its sales for next year." The firm said it has upped its pretax profit guidance for the new financial year by 5% to GBP525 million. Its outlook for the following year was re-affirmed at GBP450 million. The firm added: "The last 12 months has seen a continuation of the volatile and uncertain operating environment for Berkeley. However, while interest rates have stayed at elevated levels for longer than the market had anticipated, there are signs that the outlook is improving with inflation greatly reduced, the first interest rate cut expected later this year and a return to growth." Its dividend per share for the year to the end of April was raised slightly to GBP0.92 from GBP0.91. Berkeley said it is on track to deliver GBP283 million, GBP2.67 per share, in shareholder returns by September. It explained GBP34.9 million of that will come through a 33.00 pence per share interim dividend and GBP184.0 million, 174p per share, will be through a special dividend accompanied by a share consolidation.
Results
Descent set of results & I do like BTR in London.
Build to Rent.....can't go wrong in a high rental market!!
ATB
Started: AceofClubs, 14 Jan 2024 14:42
Last post: kernowlad, 3 May 2024 15:57
Sold all of mine today. Might be foolish but this is a dizzy height and I have been burned badly in other shares by not selling at a high. Usually get it wrong so watch it go to £55!
Sold 70% of my holding on Friday at just over £48. I think this is fully valued at the moment and could drift backwards. I have been a long-term holder and it's been a good investment: management remains some of the best in housebuilding but I just don't like the macro background and the prospect of a Labour government. That will be bad for Berkeley's middle-class customers and profitability.
AceOfClubs
Started: sparhawk, 8 Dec 2023 11:02
Last post: Crossley, 12 Dec 2023 13:41
Berkeley and M&G’s plans get green light despite concerns about ”an incongruous, monolithic wall of development”
Housing secretary Michael Gove has given the green light for a 2,150-home development on the site of a former Homebase and Tesco’s in Hounslow, west London.
A planning inspector had recommended refusal for a development of 16 blocks of up to 17-storeys on the two sites at the Tesco and Homebase sites on Syon Lane on the grounds that some of the buildings were too high.
The planning applications were made by St Edward Homes, a joint venture company owned by M&G Investments and Berkeley.
Nearly 4% now. Clearly the market thinks little of the report which if you read it one way is understandable. The run up this week was presumably based on the hope that the report would be more positive and while it certainly isn't negative it is a steady as she goes so all those hoping for a jump are baling. It all seems to be small numbers of shares so presumably pis rather than iis. If it had reached £50 I might have sold some myself as taxes are due.
Waiting to see how far it drops.
Very positive half year report, the nearly 2% share price drop seems a bit harsh
Started: Registerme, 23 Oct 2023 14:07
Last post: Registerme, 23 Oct 2023 14:07
As I write, Crest Nicholson is trading at just under 50% of net tangible asset valuation! £876.6m of net assets, priced at £404m market cap…. Crazy!!
Even assuming worst case scenario:
Write the £29m intangible's off- leaves £847.6m net assets.
Inventories were sitting at £1108.1m on the latest 2023 balance sheet. So assuming worst case scenario, let’s say a write down of 20% due to market conditions- (£221.62m).
LEAVES £626m OF NET ASSETS (WORST CASE). That’s a 55% premium on current market cap!!
Being as Crests business is also predominantly in the south of England, it seems like a good opportunity for Berkeley to put a bid in to get the assets on the cheap. The latest accounts show it has £1070m of cash, so it’s well placed to put a bid in.
I’m not saying I’ve heard any rumours of this, just that it would be a great opportunity!
Nothing to brag about if you won by peeping, trafficking, or winking. We all know how you win. Shameless turkey!
Started: Barnet, 5 Oct 2022 21:20
Last post: Barnet, 5 Oct 2022 21:20
No.1 High leverage landlords who own multiple houses on buy-to-let mortgage. Mortgage payments go up with mortgage rates, but rental incomes tend to go down instead when renters cannot get enough incomes in a hard time. When landlords cannot need their ends, they will be forced to sell low.
No.2 Single homeowner with a large mortgage and happens to lose job in a hard time, the bank lender doesn't care how much the mortgage default property can be sold on.
No.3 Small builders are forced to sell low to keep cash flow running.
No.4 Big builders with high debts, low cash reserves and low land banks. Low cash flow happens when housing market crashes.
Started: Barnet, 3 Oct 2022 21:52
Last post: Barnet, 3 Oct 2022 21:52
At present, new mortgage rates are from 3.6% to 5.9%, standard mortgage rate from Nationwide is 5.24%, so it is quite a big jump from the current term of rate which is about 2%.
Next two years will see mortgage rate up to near or exceed previous crashing rate of 6%, mortgage default will increase, house price will be at all-time high, cost of house improvement at all-time high, and affordability at all-time low as salary and employment opportunity do not keep up with. Housing market correction is unavoidable.
To make it worse, when housing market does crash, mortgage lending becomes extremely tight, so that only those buy with cash only can get bargain price.
Be prepared.
I am not sure it is the same church as I attended 10 years ago, that one started at 11am. Couldn't get in, it was too late and gate was closed, so couldn't pray.
God don't help everyone, and stock markets are still falling.
Started: Barnet, 30 Sep 2022 18:16
Last post: Barnet, 30 Sep 2022 18:16
The most and first expenditure are foods. Imported foods mainly come from Africa and Europe. Weak pound doesn't matter that much, strong dollar is irrelevant. Weak pound can attract injections of strong dollar capital.
High inflation and high interest rate cause destructions in every aspect in every walk of life. FED has been repeating this disaster so far and can get away with it.
I feel the need to pray for God's help after 10 years of not touching the Bible, the local church opens on Sunday morning. Stock markets shouldn't be places people visit so much in the next few years.
Started: Barnet, 27 Sep 2022 14:41
Last post: Barnet, 27 Sep 2022 14:41
Max is controlling the SP, living in a mighty castle with a big shark in the pond.
Trade index if you cannot go to bed with Max in that place.
I almost forgot there was a lovely writing letter posted to me by Marvis a few weeks ago. Thanks for that. Who could it be?
Bought some at under 33 quid.
Last post: Barnet, 21 Sep 2022 11:00
Do not forget barbes, bots and bails from the Pooo-liteee, they are around detecting. They certainly like to eat big meals, or small snaps. They like to being landlords, the best way to make money with an over-paid job. Nothing is secure on line, they certainly can know who is the poster.
Started: Barnet, 16 Sep 2022 23:09
Last post: Barnet, 16 Sep 2022 23:09
Some shares suck like black holes. How to recognize them? It certainly takes time, but time will tell. The tell-tale sign is, if too many fat ladies sing on the same day, that share will behave like a black hole. Another tell-tale sign is, if too many shorts are accumulated over years, that share will behave like a black hole as well. What is more? Let me think hard and tell you later.
Avoid them and escape as soon as possible. How much value have been sucked by black holes, no one can know. Stock markets are full of these black-hole -like shares. Better off to trade index.
Started: Barnet, 15 Sep 2022 21:47
Last post: Barnet, 15 Sep 2022 21:47
Say it all!
Started: Barnet, 12 Sep 2022 21:21
Last post: Barnet, 12 Sep 2022 21:21
Property Market in China is reverting to bull run, which is a good time to invest or upsize accommodation, increase land reserves. Construction material producers will be busy again. I will invest RIO from now on.
Whilst the property market in the UK is on the last impulse, time to prepare for the tough time ahead. Unless there is a real demand for first own house, or upsize own house, buy to let is a high-risk investment now. Landlords might be better off to considering reduce their portfolio rather than to increase.
Passive house is a trend, so as electric heating. Central heating should be abandoned. Fireplaces should be kept in the traditional houses. New energy and renewable energy will be mostly well-come in the future.
I feel no difference after Brexit. Those live in big cities may feel the difference that much less European citizens are able to come to the UK without a work visa, to compete with them with job positions, school placements and free accommodation from the local councils.
Energy bills go up or not depend on the contracts you signed up for, many households are already on a capped price which are not affected by the fluctuation of energy prices.
Who want to buy a super in Greggs? I don't really care, never enter Greggs before, just wondering why some people like to buy a sausage roll and then have to eat on a busy high street with people walk passing by you. The same feeling goes to why big hedge fund cares about the positions of small gambling money, unless share price is manipulated for the pleasure of horses.
The effect of Brexit is slowly showing up, like a crawling turtle. I feel the UK is better off without those come, get and go European citizens, shouldn't make it so easy for them to enter the UK as they are less beneficial than those qualified a working visa.
I may go to a church to bless for the Queen later, but not this weekend.
Started: Barnet, 6 Sep 2022 21:33
Last post: Barnet, 6 Sep 2022 21:33
BKG has a high share price, but its market capital is about the same as other builders.
Share price is not just a face value of a listed company, but it is certainly a face value, and it is certainly better to have a face value than none.
There are certainly investors who don't care face values, ending up with loser stocks. If an Aim share failed one investor and you knew it, why were you so foolish to touch it as well? I do give sympathy to those who can not afford to keep chicken and eggs, and have to cope with the neighbour's cat in the garden. You work 16 hours a day, certainly not for a cat.
Liz Truss became PM recently, but does she matter to us? Not at all. I already lost truss on governments, polices and NHS. We pay them tax, they do not actually care about us, and we do not really care about their policy. We are all muppets or puppets.
Shall we resource to the Bible? It is a famous book, like many books, you only take on what you believe. You try to be kind , be helpful, be generous, but you should not expect others doing the same to you. Again, the only person you should truss is yourself, nobody else.
What I do care is why the Queen, MPs and PMs are all landlords? And even Mr Thomas wants to be my landlord. Obviously, they know rent eats up a third of a decent salary. So why pay them rent if you can afford a mortgage?
Is Lewis Hamilton shorting this stock? Wonder how many Formula One series he has competed.
BKG has low debts, but the SP has been weak. What are the seasons for shorting?
Started: Barnet, 2 Sep 2022 20:56
Last post: Barnet, 2 Sep 2022 20:56
UK homebuilder stocks slump as HSBC warns sector on cusp of downturn today.
There might be a few good years left for builders, but will certainly following years of not making profits, years of making a loss, and years of banks not lending. There are already 10 years of bull run so far, so warning signs ahead will not surprise. Those builders with low debts, high cash flow and land reserves will survive in a downturn.
Started: longtimeinvestor, 1 Sep 2022 10:35
Last post: NorrisCole, 2 Sep 2022 12:00
Sector downgrade by HSBC - all housebuilders have slumped today
Does anyone have any idea why this large drop?
Going ex div for 22p cant have done it
at just over £36 - an averaging up purchase.
I have spent a fortune on airlines over the last 20 years in order to cross half of the earth to see my parents. The airlines must have made loads of money from constant travellers, the flight prices remain flat in the last 20 years despite the fluctuation of fuel price, there must be some other reasons why the airlines made a lost in recent years. I think it is due to the aftermath of the Pandemic that will fade out in history.
Apart from accommodation and food, transport is the third expense for most people. Consumer stocks like house builders, energy suppliers and airlines are safe investments when buying in right time.
Started: Barnet, 1 Sep 2022 22:21
Last post: Barnet, 1 Sep 2022 22:21
Cinemas mostly located in big city centre. The one in Chichester, Cine, has a huge car park next to it. Car park charge is calculated by hourly rate. To see a film, it ends up that you will pay more on a car park ticket than a cinema ticket. Should cinema ticket price be so cheap?