Does the towering discount and 6% yield make Landsec a Brexit buy?
Property stocks with exposure to the UK's struggling retail sector are almost as unloved as airlines and car dealers. So why would we consider adding London-focused FTSE 100 REIT Land Securities to our income portfolio?
When investing in property stocks, we like to buy at a discount to net asset value, with a well-covered dividend. The underlying property assets should be good quality and there shouldn't be too much debt.
We think that Land Securities (LON: LAND) ticks all of these boxes. The firm's £13.8bn portfolio contains £6.6bn of prime London offices, £5.5bn of retail space and £1.7bn of properties such as hotels and leisure parks. Investors buying this mix of property today can pick up the shares at a discount of nearly 40% to their net asset value of 1,341p and while they wait for…
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