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These 2 magnificent FTSE 250 shares are on sale right now!

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Image source: Getty Images

The FTSE 250 is rebounding sharply. But it’s still possible for eagle-eyed investors to find excellent value shares.

Here are two I think savvy UK share investors should consider buying today.

7.2% dividend yield

Tritax Eurobox (LSE:EBOX) has soared as hopes of interest rate cuts have risen. Yet at 59.8p, the company – which owns and operates storage and distribution hubs — still looks cheap to me.

The property stock trades on a forward price-to-earnings (P/E) ratio of 13 times. This makes it cheaper than all of its UK-listed peers, as shown in the table below:

Company

Forward P/E ratio

Tritax Big Box REIT

19.3 times

Warehouse REIT

14.3 times

Urban Logistics REIT

15.5 times

Meanwhile, the dividend yield for this year is 7.2%.

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There are multiple reasons why I think Tritax Eurobox has a very bright future. Demand for logistics and warehousing space is tipped to soar in Europe for these reasons:

  • Business are accelerating their reshoring and nearshoring initiatives

  • Embracing new technological trends (like automation and robotics)

  • Reconfiguring their supply chains following Covid-19

  • Acquiring space to capitalise on the shift towards omnichannel retailing

This is all tipped to worsen the current property shortage in this market, pushing rent growth still higher. The firm’s own rents are on track to rise 3% to 5% in the current financial year.

Near-term earnings growth could be compromised if interest rates remain around current elevated levels. But on balance, I think the profits potential here is massive.

More spectacular value

When it comes to tremendous all-round value, I feel that Bluefield Solar Income Fund (LSE:BSIF) is hard to top. It trades on a forward P/E ratio of 9.9 times, suggesting — like Tritax Eurobox — that it’s very cheap in respect of predicted earnings.

On top of this, its dividend yield for this year is 8.3%, well ahead of the index’s 3.2% average.

Finally, Bluefield seems cheap to me when I look at the value of its asset portfolio. At 106.4p per share, it trades at a 21% discount to estimated net asset value (NAV) per share of 137.1p.

Building and maintaining green energy infrastructure requires vast amounts of capital. And so this renewable energy stock carries high levels of debt (£577m as of December).

But Bluefield’s strategic partnership with GLIL Infrastructure in late 2023 helps reduce this undeniable risk to investors. GLIL will acquire a 50% stake in a portfolio of more than 100MW of the firm’s assets as part of the deal.

The tie-up will also help Bluefield fund its development pipeline to drive future profits. It had 1.5GW of capacity in its project pipeline at the end of 2023, of which 93MW was under construction.

It’s also worth mentioning the company’s efforts to diversify its portfolio. Of that pipeline, a third is dedicated to battery storage, with the remainder earmarked for solar assets.

This helps the business de-risk its operations, while providing exposure to another rapidly growing industry.

The renewable energy sector is tipped for exponential growth over the next decade. And I think this UK share could be an excellent way for investors to capitalise.

The post These 2 magnificent FTSE 250 shares are on sale right now! appeared first on The Motley Fool UK.

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Royston Wild has positions in Tritax Big Box REIT Plc. The Motley Fool UK has recommended Tritax Big Box REIT Plc and Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2024