Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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February 20, 2024

SPR, LOK

Company research

Springfield Properties (SPR, 78p, £93m mkt cap) – SPR is a client of PERL

Scotland’s only quoted housebuilder. HY (Nov) results. Link to Progressive Equity Research note, On track as market recovery builds momentum:

“Today’s interim results show that Springfield remains on track to meet FY24E expectations for both earnings and, helped by profitable land sales, debt reduction – amid gathering signs of recovery in all three of Springfield’s sectors: private sales, affordable housing and, as Scotland’s rent controls end, private rental. We maintain our FY24E and FY25E estimates but suggest our volume forecasts may be conservative. We believe the Barratt Redrow deal could highlight Springfield’s low valuation.”

Company news

Lok’n’Store Group (LOK, 809p, £266m)

UK self-storage group. HY (Jan) trading update.

Guidance: “Trading in the first half has been positive with self-storage revenue up 4.9% on the same period last year. We continue to deliver on our strategy of opening more new stores in the under-supplied self-storage market. We have made significant progress on our new store pipeline with the Basildon store opening in December 2023, the Kettering managed store in February 2024 and two more stores due to open in 2024 in Staines and Bromborough. These new stores are anticipated to add further momentum to sales, earnings and net asset growth”.

Trading: Occupied unit space at the end of the period -2.6%,  862,554 sq ft; [rice per square foot +4.0%. The four new stores will add 211,600 sq ft of trading space to the portfolio.

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Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

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