DB:BLDA

Stock Analysis Report

Executive Summary

Our portfolio of high quality UK commercial property is focused on London Offices and Retail around the UK.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has British Land's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLDA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

BLDA

4.2%

DE REITs

2.0%

DE Market


1 Year Return

3.5%

BLDA

44.3%

DE REITs

15.1%

DE Market

Return vs Industry: BLDA underperformed the German REITs industry which returned 44.7% over the past year.

Return vs Market: BLDA underperformed the German Market which returned 15% over the past year.


Shareholder returns

BLDAIndustryMarket
7 Day5.3%4.2%2.0%
30 Day-0.7%8.8%1.0%
90 Day6.2%15.0%3.8%
1 Year7.6%3.5%48.9%44.3%18.6%15.1%
3 Year7.2%-3.8%41.2%21.0%16.8%6.6%
5 Yearn/a45.5%14.2%23.7%6.7%

Price Volatility Vs. Market

How volatile is British Land's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is British Land undervalued compared to its fair value and its price relative to the market?

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLDA (€6.9) is trading below our estimate of fair value (€9.52)

Significantly Below Fair Value: BLDA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BLDA is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: BLDA is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BLDA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BLDA is good value based on its PB Ratio (0.7x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is British Land forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

66.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: BLDA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BLDA's is expected to become profitable in the next 3 years.

Revenue vs Market: BLDA's revenue (0.08% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BLDA's revenue (0.08% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLDA's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has British Land performed over the past 5 years?

-56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLDA is currently unprofitable.

Growing Profit Margin: BLDA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BLDA is unprofitable, and losses have increased over the past 5 years at a rate of -56.9% per year.

Accelerating Growth: Unable to compare BLDA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BLDA is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (91.2%).


Return on Equity

High ROE: BLDA has a negative Return on Equity (-8.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is British Land's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BLDA has a high level of physical assets or inventory.

Debt Coverage by Assets: BLDA's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BLDA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BLDA has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: BLDA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BLDA has a sufficient allowance for bad loans.

Low Risk Liabilities: BLDA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BLDA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BLDA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BLDA has an appropriate level of bad loans.


Next Steps

Dividend

What is British Land's current dividend yield, its reliability and sustainability?

5.50%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BLDA's dividend (5.5%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: BLDA's dividend (5.5%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: BLDA's dividend payments have been volatile in the past 10 years.

Growing Dividend: BLDA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.2%), BLDA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLDA's dividends in 3 years are forecast to be covered by earnings (93.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Chris Grigg (60yo)

11.1yrs

Tenure

UK£1,977,000

Compensation

Mr. Christopher M. Grigg, also known as Chris, has been the Chief Executive Officer of The British Land Company PLC since January 12, 2009 and has been its Executive Director since January 2009. Mr. Grigg  ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.57M) is about average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Grigg
CEO & Executive Director11.1yrsUK£1.98m0.15% £9.8m
Simon Carter
CFO & Director1.8yrsUK£1.39m0.015% £992.0k
Joff Sharpe
Head of Operations5.3yrsno datano data
Sally Jones
Head of Strategy & Investments3.8yrsno datano data
David Walker
Head of Investor Relations0yrsno datano data
Brona McKeown
General Counsel & Company Secretary2.1yrsno datano data
Cressida Curtis
Head of Corporate Affairs & Sustainability0yrsno datano data
Stacey Clark
Chief Marketing Officer0.08yrsno datano data
Ann Henshaw
Human Resources Director4.1yrsno datano data
Nigel Webb
Head of Developments16.6yrsno data0.0088% £567.4k

3.9yrs

Average Tenure

55yo

Average Age

Experienced Management: BLDA's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Grigg
CEO & Executive Director11.1yrsUK£1.98m0.15% £9.8m
Simon Carter
CFO & Director1.8yrsUK£1.39m0.015% £992.0k
William Jackson
Senior Independent Director2.6yrsUK£105.00k0.016% £1.0m
Tim Score
Independent Chairman of the Board0.6yrsUK£95.00k0.0059% £378.7k
Rebecca Worthington
Independent Non-Executive Director2.1yrsUK£74.00k0.00032% £20.7k
Preben Prebensen
Non-Executive Director2.4yrsUK£71.00k0.0022% £139.6k
Alastair Hughes
Non-Executive Director2.1yrsUK£73.00k0.00080% £51.7k
Laura Wade-Gery
Non-Executive Director4.8yrsUK£72.00k0.0010% £66.6k
Nicholas MacPherson
Non-Executive Director3.2yrsUK£71.00k0.00060% £38.8k
Lynn Gladden
Non-Executive Director4.9yrsUK£71.00k0.0020% £128.0k

2.5yrs

Average Tenure

56yo

Average Age

Experienced Board: BLDA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

British Land Company Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: British Land Company Plc
  • Ticker: BLDA
  • Exchange: DB
  • Founded: 1856
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: UK£5.380b
  • Listing Market Cap: UK£6.463b
  • Shares outstanding: 926.66m
  • Website: https://www.britishland.com

Number of Employees


Location

  • British Land Company Plc
  • York House
  • 45 Seymour Street
  • London
  • Greater London
  • W1H 7LX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRLA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BLNDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BLNDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BLND NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
BTLC.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 ORD GBP0.25 SPONUSUSDOct 2003
BLDADB (Deutsche Boerse AG)ADR EACH REP 1 ORD GBP0.25 SPONDEEUROct 2003

Biography

Our portfolio of high quality UK commercial property is focused on London Offices and Retail around the UK. We own or manage a portfolio valued at £15.4bn (British Land share: £11.7bn) as at 30 September 2019 making us one of Europe's largest listed real estate investment companies. Our strategy is to provide places which meet the needs of our customers and respond to changing lifestyles - Places People Prefer. We do this by creating great environments both inside and outside our buildings and use our scale and placemaking skills to enhance and enliven them. This expands their appeal to a broader range of occupiers, creating enduring demand and driving sustainable, long term performance. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 55% of our portfolio. Our Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 41% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 53 acre redevelopment opportunity where we have plans to create a new neighbourhood for London. Sustainability is embedded throughout our business. Our places, which are designed to meet high sustainability standards, become part of local communities, provide opportunities for skills development and employment and promote wellbeing. In April 2016 British Land received the Queen's Award for Enterprise: Sustainable Development, the UK's highest accolade for business success for economic, social and environmental achievements over a period of five years. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:42
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.