A run of better-than-expected results has seen sentiment begin to warm toward real estate
The real estate sector generally had a good run in May. Against a fall of 4.1% in equities generally, property stocks went in the opposite direction, ending the month 3.9% up.
With the direct property market and companies performing better than had been expected earlier in the year, sentiment has begun to warm towards the sector.
Outstanding equity
Evans of Leeds received a big boost from the prospect of a buyout.
The Evans family, which together with related parties controls 53% of the shares, is proposing to buy out all the outstanding equity at 125p a share – some 20% above the price shares had been trading at before the approach.
Corporate activity also lay behind the 12% rise in Delancey’s share price. Though James Ritblat’s £218m paper bid for Greycoat did lose out to the management’s cash offer of £307m, Delancey has booked a healthy profit by selling the10% stake it held in the company.
Annual high
At James Smith Estates, managing director, Tony Roscoe’s new broom began to show results. Shares hit an annual high on the back of a 23% rise in profits to £3.1m and a 31% leap in net asset value to 192p a share.
Regalian lost some of the gains it made last month, when its share price rose on reports that Land Securities was going to get involved in the company’s Paddington Basin project in London. With no confirmation forthcoming, the shares fell back.
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May property shares: the highest risers, the hardest fallers |
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Market cap (£m) |
Share price at 31/5/99 (p) |
Rise/fall on month(p) |
Rise/fall on month (%) |
Rise/fall on 3 months (%) |
|
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Top 10 gainers |
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1 Evans of Leeds |
164.9 |
125.5 |
26.0 |
26.1 |
22.4 |
|
2 James Smith |
32.6 |
138.0 |
21.5 |
18.5 |
16.0 |
|
3 Chesterton Estates |
21.1 |
25.0 |
3.5 |
16.3 |
47.1 |
|
4 Brixton Estate |
577.9 |
239.0 |
31.0 |
14.9 |
20.4 |
|
5 Warner |
121.6 |
237.5 |
30.0 |
14.5 |
15.0 |
|
6 Delancey |
171.1 |
112.5 |
12.5 |
12.5 |
16.6 |
|
7 Ashtenne |
112.4 |
161.5 |
17.0 |
11.8 |
15.0 |
|
8 Chelsfield |
745.2 |
310.5 |
32.5 |
11.7 |
12.7 |
|
9 MEPC |
1780.8 |
513.5 |
53.5 |
11.6 |
5.9 |
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10 McKay Securities |
69.0 |
157.5 |
15.0 |
10.5 |
22.1 |
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Top 10 losers |
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1 Regalian |
39.5 |
22.5 |
-4.0 |
-14.3 |
-3.3 |
|
2 City North |
26.6 |
122.5 |
-15.5 |
-11.2 |
-2.4 |
|
3 Savills |
79.9 |
148.5 |
-18.0 |
-10.8 |
17.0 |
|
4 Moorfield |
48.5 |
27.5 |
-2.5 |
-8.3 |
5.8 |
|
5 Green |
405.3 |
365.0 |
-27.5 |
-7.0 |
-2.7 |
|
6 Scottish Metropolitan |
121.8 |
93.0 |
-6.0 |
-6.1 |
23.2 |
|
7 DTZ Debenham Thorpe |
53.1 |
107.0 |
-6.5 |
-5.7 |
28.1 |
|
8 Grantchester |
317.2 |
162.5 |
-9.5 |
-5.5 |
1.6 |
|
9 Bradford Property Trust |
366.7 |
250.5 |
-14.5 |
-5.5 |
1.2 |
|
10 Helical Bar |
149.5 |
500.0 |
-22.5 |
-4.3 |
13.0 |
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FTSE All-Share index |
3025 at 4/5/99 |
2901 at 2/6/99 |
Change (%) -4.1 |
1.4 |
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FTSE Real Estate Index |
2057 at 4/5/99 |
2137 at 2/6/99 |
Change (%) 3.9 |
1.4 |
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The table shows property share price movements for companies with a market capitalisation above £15m |
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Source: PA Listings |
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