Shares in commercial property developer and investor Land Securities were rattled on Friday morning following the publication of interim results. Whilst income was up, costs were down, lettings stood at an impressive 98% and rent increases looked punchy too, the headline profit figures were impacted by write downs following the sale of non-performing assets. Investors appear to have jumped on this and the Land Securities share price was 4% lower in early trade.
A statement in response to press speculation has been published this morning. Two major shareholders who collectively own 44% of the business have confirmed they intend to hold talks “with financial investors in relation to a range of potential options, from contributing growth capital to PPHE, to a potential partial monetisation of their stakes in PPHE”. That technically puts the company into an offer period and the market has reacted accordingly. The PPHE share price was up more than 10% shortly after the open.
The housing sector as a whole didn’t start the day in the best shape, with the latest about turn from the Chancellor in terms of what might be in the budget at the end of the month scuppering confidence. Whilst all the big players are nursing losses on Friday morning, Persimmon was faring worst, with the threat of lowering tax thresholds rather than hiking rates set to hit buyers right across the spectrum, whilst talk of “mansion taxes” taking a broader swipe is also weighing. The Persimmon share price was down as much as 4% just after the bell, although losses had been reduced significantly by 8.45am.
Most read news on Investegate this morning
PLACING OF SHARES IN GOODWIN PLC - - Goodwin Plc (GDWN)
Proposed Cancellation of Admission & Notice of GM - - Polarean Imaging (POLX)
Proposed change of strategy and investment manager - - Crystal Amber Fund Ltd. (CRS)
