British Land Company PLC

British Land Company PLC (LSE: BLND) is an FTSE 250 Index-listed UK-based property company. Its segments include Campuses and Retail & Fulfilment. The Campuses segment is leveraging the Campus proposition to focus on customers in sectors, including science, technology, and health.

Investment Rationale – Watch at GBX 297.50

• Technical Update: BLND’s stock price is in the downtrend forming lower lows and lower highs and any fresh uptick might be potentially used to further liquidate the holdings by the investors. For the prices to resume an uptrend the near-term resistance of GBX 324.28, needs to be taken off with strong volumes, accompanied by improved financial performance. The increasing interest rates in hybrid workplaces and companies allowing permanent work from home are a few external headwinds the company is facing.
• Operational Update: The company reported that Meta, one of its clients, surrendered 1 Triton Square for GBP 149 mn on 25 September 2023. This will result in EPS dilution post-interest savings of GBX 0.60 per share for the six months to March 2024.
• Sluggish Profitability Margins: For FY23, the Gross margin of the group was 74.6% against the industry median of 75.4% and the EBITDA margin of BLND slipped to 56.5% in the same period (FY23) against the industry median of 67.1%. Also, the company reported a lower Operating margin of 48.6% in FY23 as compared to the industry median of 62.1%.
• Portfolio Performance: The group reported an overall decline of 9.5% in the portfolio to GBP 8,898 mn for the period ended FY23 as compared to GBP 10,467 mn in pcp. Further, the total accounting return (loss) was negative 16.3% in FY23 as compared to the total accounting return of 14.6% in FY22.    

Share Price Chart

Conclusion

Due to the current macroeconomic condition, higher interest rates, poor sentiments, and considering the outflows and technical chart pattern, a "WATCH" recommendation on British Land Company PLC (LSE: BLND) has been given at the closing market price of GBX 297.50 (as of 31 October 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 31 October 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.

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