|Bid||376.70 x 0|
|Ask||376.90 x 0|
|Day's range||375.00 - 391.90|
|52-week range||309.40 - 649.40|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||N/A|
|Earnings date||27 May 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||26 Mar 2020|
|1y target est||651.59|
These FTSE 100 stocks have been battered in the stock market crash. Roland Head explains why this could be a good time to build a long-term position.The post Forget buy-to-let: I'd buy these FTSE 100 stocks in an ISA to get rich and retire early appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- Rent collection day last Wednesday looked like a disaster for mall landlords in the U.K. Reeling from the coronavirus lockdown, tenants including JD Sports Fashions Plc, Boots drugstores and Primark withheld some payments pending negotiations with landlords. Estimates vary widely as to how much was paid of the 2.5 billion pounds ($3.1 billion) due — from 10% to 50%.This isn’t just bad news for Lakeside mall-owner Intu Properties Plc, which on Friday collapsed into administration. Missing rents affect everyone, including property developers Hammerson Plc and British Land Co.Whatever the final tally, the balance of power between retailers and their landlords has indelibly shifted. The days when well-known retail chains signed 25-year leases dictating that rents only rose were already largely consigned to history. But the retail apocalypse wrought by Covid-19 means that landlords have no choice but to accept even shorter leases and far more flexible terms with a good dose of the right services thrown in. As I have argued, the pain from the pandemic must be shared between retailers and property owners on both sides of the Atlantic. The future of the mall depends on it.Brick-and-mortar outlets were already facing existential questions from the rise of Amazon.com Inc. and other online retailers, and many traditional retailers had started to embrace e-commerce too. Covid-19 is accelerating this shift. At the end of last year, digital accounted for about 30% of U.K. retail sales excluding food. This could increase to more than 40% over the next year or so, according to independent retail analyst Richard Hyman.The trend makes store economics even more challenging. Moving sales online has its own costs, from stock management to processing returns, which can’t be offset with a commensurate reduction in store expenses. And now retailers have to invest to adapt their shops to social-distancing rules.With such pressure on profits, some stores will inevitably have to close. Those that don’t will have to cut costs, and that includes rent. In order to better manage cash flows, it’s imperative they be allowed to move to monthly rent payments from quarterly ones.Another option is for landowners to offer so-called turnover rent deals based on a proportion of in-store sales, usually underpinned by a minimum fee. This model, already common in off-price retail parks, aligns everyone’s interests. It gives mall owners an incentive to make their properties as appealing to customers as possible, with a pleasant environment, concierge services and a good mix of tenants covering retail, food and leisure. And retailers would be more inclined to sign for a longer period.The downside for property companies is more uncertainty because they cannot count on a guaranteed income stream to pay down their debt. Still, this is probably better than an empty unit.As push comes to shove, it’s best relations stay cordial. After all, retailers have promised to pay their landlord, and rent that hasn’t been collected during the pandemic isn’t written off. Yes, there’s a case for leniency when chains are clearly in distress. But it’s harder to justify withholding what’s due when retailers have remained largely open, such as Boots, or are in good shape financially, such as JD Sports. There are good reasons to encourage constructive dialogue. Store chains that take an aggressive stance may be exposing themselves to legal action. In the U.S., Gap Inc. is facing suits from Simon Property Group Inc. and Brookfield Property Partners LP. Plus, now that leases are much shorter, discussions over the proper rent come around much more frequently. When they do, companies that paid in full during the crisis may be able to secure better terms than those that reneged.With no let up in the ferocity of retail competition, it’s smart to strike more favorable deals in the future. But any tense moments should be saved for the contract negotiations, not quarter day. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Experts think COVID-19 could be the catalyst to bring retail rents down across the industry, putting major players like British Land and Hammerson in a bind.
(Bloomberg) -- British shopkeepers slowly emerging from three months of forced closure have a new problem on their hands: the rent is due.Third quarter rents for the country’s commercial properties are billed on Wednesday with about 2.5 billion pounds ($3.1 billion) owed by retailers alone, according to the British Property Federation. While mall landlords eventually got about half the rent owed for the second quarter, government curbs on their ability to force payments mean they may get even less this time around.“This has never happened before and let’s hope to God it never happens again,” said David Fox, co-head of retail agency at broker Colliers International Group Inc. “The expectation is that this quarter’s rent collection is likely to be slightly worse.”Britain’s mall and store owners were already grappling with falling rents and values even before the coronavirus hit, as retailers sought to cut costs in the face of rising wages, taxes and online competition. Now landlords face an existential threat as retailers collapse into bankruptcy with little sign of new operators looking to take their place.Intu Properties Plc, which owns nine of the U.K.’s largest malls, has found itself in a precarious position. The landlord said Tuesday it’s in crunch talks with lenders as it tries to secure waivers on debt terms to avoid collapsing into administration. It collected about 40% of the rent it was owed for the second quarter.British Land Co., which owns the Meadowhall shopping center in Sheffield, expects Wednesday’s collection to be at least as bad as the prior period, Chief Executive Officer Chris Grigg said in an interview. The company can withstand sharp writedowns in property values and a prolonged period of reduced rent collection in its stores, thanks to a large portfolio of offices that have been more resilient to the crisis, he said.Under PressureMeanwhile, the government has put a temporary ban on evictions to protect retailers unable to make rent, as well as limiting landlords’ abilities to force non-paying tenants into bankruptcy. But it hasn’t extended the same emergency support measures to property owners to help them service interest payments due to lenders, meaning many now face mounting pressure.“If landlords take a further huge hit this week then that will put much more pressure on them and their lenders,” Melanie Leech, chief executive officer of the British Property Federation said. While government has been focused on the short-term impact on retail jobs, it should also be mindful of “destabilizing the property funding ecosystem because that’s closely linked to the health of the economy overall,” Leech said.Survival tactics are in full swing. Most retailers have been renegotiating rent and lease terms where they can during the lockdown, with many switching to paying monthly rather than quarterly. Many are pushing for turnover-based rents, where the amount they pay is linked to a store’s sales, or even, in some cases, rent deferrals and service charge reductions.Most retailers have been renegotiating rent and lease terms where they can during the lockdown with many switching to paying monthly rather than quarterly. Many brands are pushing for turnover-based rents, where the amount they pay is linked to a store’s sales, or even, in some cases, rent deferrals and service charge reductions.Pepco Group, owner of the Poundland value chain in the U.K., said Tuesday it had renegotiated its lease on 76 stores with rent reductions “ahead of our 25% expectation.” Fashion retailer New Look deferred its rent in March and has been negotiating with landlords since. Associated British Foods Plc, the owner of Primark Stores, in March withheld all of the second-quarter rent for the discount clothing chain’s U.K. stores.“The reason we are so focused on rent collection is because it is currently the best indicator on which tenants are going to survive,” Rob Virdee, an analyst at real estate research firm Green Street Advisors said. “I think there are going to be a lot of tenant administrations, bankruptcies and a lot of pain.”(Updates with retailer actions in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
These two FTSE 100 (INDEXFTSE:UKX) stocks appear to offer a margin of safety that could lead to high returns in the long run, in my view.The post I'd invest £1k in these 2 cheap FTSE 100 shares today to get rich and retire early appeared first on The Motley Fool UK.
This FTSE 100 share is rocketing in value! Is it a share that could help you to make a million, though? Royston Wild takes a look.The post Want to make a million from your ISA? I’d avoid this soaring FTSE 100 stock if I were you! appeared first on The Motley Fool UK.
European stock markets are set to edge higher Thursday as the region continues to reopen for business, but gains will be limited amid rising tensions between the U.S. and China over Hong Kong. At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.5% higher. France's CAC 40 futures were up 1%, while the FTSE 100 futures contract in the U.K. rose 1.2%.
"Given nearly all non-essential shops, food and drink and leisure outlets remain closed, the collapse in value of this part of the portfolio is entirely unsurprising, as are difficulties in getting rent from tenants in these sectors," AJ Bell analyst wrote. British Land, which also owns Sheffield's huge Meadowhall centre, said it had written off 2 million pounds in rent for March to June from small food vendors and deferred another 35 million pounds to be paid back gradually. On a day that saw rival mall owner Hammerson <HMSO.L> announce that its long-time CEO is stepping down, British Land reported that its loss after tax widened to 1.1 billion pounds for the year to March 31, against 320 million pounds a year earlier, while its net asset value declined only 14.5% to 774 pence.
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