|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||6.30 - 6.59|
|52 Week Range||5.68 - 8.72|
|Beta (5Y Monthly)||0.94|
|PE Ratio (TTM)||23.18|
|Forward Dividend & Yield||0.41 (5.96%)|
|Ex-Dividend Date||Jan 01, 2020|
|1y Target Est||N/A|
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(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Faced with the choice of accepting rent cuts or hunting for new retailers to fill hundreds of stores, U.K. mall owners are swallowing their medicine.Some of Britain’s biggest commercial landlords including Hammerson Plc and British Land Co., voted in favor of a rescue plan for billionaire Philip Green’s Arcadia Group that meant having to accept dozens of store closures and rent cuts of at least 25% at almost 200 sites.But their approval for the so-called Company Voluntary Arrangement was grudging and highlights how much pressure they are under from the pain inflicted on retailers by consumers choosing to shop online rather than in department stores.Land Securities Group Plc, Standard Life Aberdeen Plc and the Crown Estate had intended to vote against Arcadia’s proposals and switched at the 11th hour, according to people familiar with their plans who asked not to be named discussing information that isn’t public. One landlord, Intu Properties Plc, voted against, calling the deal unfair to tenants that pay full rent.“It really is like being stuck between a rock and a hard place,” said Daniel Swimer, property litigation partner at law firm Joelson. “Landlords could have rent reductions forced upon them or, if the CVA doesn’t get passed, they’re left with a large retailer failing in the current retail climate.”Deal ApprovedThe fact the deal was approved is likely to put further pressure on mall rents and values, and raises the possibility that commercial property owners could be tipped into a crisis similar to that faced by the retailers who make up some of their biggest tenants.The cost of insuring Land Securities’ debt against default saw the biggest daily rise since December on the day after the Arcadia vote, according to ICE Data Services. Moody’s Investors Service warned of possible damage to the creditworthiness of retail property owners that already face “weak operating performance, with declining footfall and retail sales, and downward pressure on rents.”The landlords came under pressure from Arcadia to back the deal or put about 18,000 jobs at risk if the company was forced into administration, people with knowledge of the negotiations said. Several were told they would be shirking their social responsibilities and be blamed for job losses, an accusation they resented, some of the people said, asking not to be identified as the talks were private.Arcadia representatives declined to comment.Ultimately the decision to back the CVA came down to the best commercial interests of the landlords, given that they could be left with empty sites if Arcadia fell into administration, two of the people said.Spokesmen for Land Securities, the Crown Estate and Standard Life Aberdeen confirmed they had backed the plans but declined to comment on the detail of the negotiations. Representatives of Hammerson and British Land declined to comment.Smaller CutsWhile many companies have preceded Arcadia’s CVA, few have been so large and many secured less generous rent cuts. The risk is that following Arcadia, other retailers now demand the same, even those that have previously undertaken rent cuts.“There’s nothing to stop companies coming back for a second bite,” Andrew Hughes, head of European general retail at UBS said at a media briefing last month.Intu has previously highlighted the likely impact of Arcadia’s CVA, saying last month that store closures are worse than expected and it sees net rents falling 4% to 6% this year. The company, which owns eight of the top 20 malls in the U.K., is under pressure itself to sell assets to cut debt and CVAs are hampering those efforts.Falling ValueIntu said in February that a further 10% fall in the value of its properties would cost 1 million pounds in extra expenditures in order to avoid a breach of loan covenants. U.K. Retail property values fell 10.25 percent in the year through May, according to data compiled by broker CBRE Group Inc.Some landlords are pushing back on department store chain Debenhams’ outlet closures which won creditor approval in May. Sports Direct International Plc has grouped together with landlords to challenge the CVA and property investor M&G Investments has launched another challenge, a spokeswoman for the asset manager confirmed.But it will be hard for landlords to stop the trend. Consumers’ shift to online shopping shows little signs of abating and insolvencies have jumped by more than a fifth since 2016, with more than 1,200 retailers collapsing last year.“What is 100% certain is that retailers can’t carry on paying the rents they have historically,” said Richard Hyman, an independent retail consultant. “There’s less money in the pot to fund it and the pain has to be shared by the landlord as well as by the retailer.”\--With assistance from Antonio Vanuzzo.To contact the reporters on this story: Katie Linsell in London at firstname.lastname@example.org;Jack Sidders in London at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Chris Vellacott, Shelley RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Is British Land Company Plc (LON:BLND) a good dividend stock? How would you know? Dividend paying companies with...
Britain's second-largest listed property developer said EPRA net asset value, a key industry metric that reflects the value of a firm's buildings, was 905 pence per share in the year ended March 31, down from 967 pence a year earlier. Rivals echoed similar concerns and blamed a string of collapses on Britain's high street that led to higher vacancies and declining asset value. British Land, which counts Marks and Spencer, Tesco and IKEA as tenants, said London market would remain active but there was however a "notable pause" in the early part of 2019 as Brexit uncertainty increased.
The move comes a month after Green said he was working on restructuring Arcadia, which trades under brands such as Top Shop, Miss Selfridge and Dorothy Perkins. The property groups, which included Aviva, are expected to appoint advisers to help oversee talks with Arcadia in the coming weeks, the report said. Other property owners such as Aberdeen Standard Investments, M&G Investments were also expected to be part of the consortium with the collective objective of securing improved terms for all landlords in which Arcadia's more than 500 outlets operate.
British Land said its share of the proceeds from the disposal would be 193.5 million pounds and the portfolio represented a modest premium to the company's September 2018 book value. The deal, expected to be completed in May, will reduce British Land's Superstores exposure to 1.3 percent of its portfolio with six standalone stores remaining, it said. "We are focused on further sales of retail assets which are not aligned to our strategy and continue to make good progress," British Land said.
British Land Company Plc said on Tuesday it and joint venture partner Sainsbury Plc sold 12 Superstores properties to U.S.-based Realty Income Corp for 429 million pound ($556.9 million). British Land said its share of the proceeds from the disposal would be 193.5 million pounds and the portfolio represented a modest premium to the company's September 2018 book value. The deal, expected to be completed in May, will reduce British Land's Superstores exposure to 1.3 percent of its portfolio with six standalone stores remaining, it said.
Gildersleeve will be replaced by Tim Score, an independent non-executive director of British Land and chair of the audit committee since 2014, the blue chip firm said. Score was previously the finance head of British chipmaker ARM Holdings, a unit of SoftBank Group Corp, and is currently a non-executive director at Pearson Plc and HM Treasury.