Published on: April 7, 2020
Defensive in the face of Coronavirus threat
Residential for rent developer and manager Watkin Jones traded strongly in H1 but faces inevitable disruption on its student housing and build-to-rent developments, according to last week’s pre-close update. However, we believe its established defensive qualities are demonstrated by its net cash position, forward sold position and ‘capital-light’ model. Although it has withdrawn guidance, we believe it is strongly placed to return to growth when the virus abates and could exploit widespread land opportunities.