Sir Geoffrey Leigh, outgoing chairman of Allied London Properties, vented his frustration at his company’s poor stock market rating as ALP announced year-end results today.
Leigh described the yawning gap between ALP’s 70.5p share price and its 146p net asset value per share as “a gross distortion of the true value of the company”. ALP is trading at a 48% discount to NAV, one of the largest in the sector where share prices are on average 16% below net asset values.
Leigh said: “The market does itself no favours when it so distorts the value of a company that it finds itself worth less than half the net value of the bricks, mortar and land that it owns – particularly when those assets are being efficiently managed and are profit generating.”
He said ALP’s share price did not reflect the quality of its investment portfolio or the potential benefit of its low risk development programme.
ALP posted a 16% rise in NAV to 146p per share for the year to June, and a 34% jump in pretax profit to £16m.
EGi News 28/9/98
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