Ticker: BTLCY, Buy below $9.
Why I Would Buy
- Cheap– British Pound is hovering near historic lows relative to the US Dollar. This makes now an ideal time to buy British hard assets (such as real-estate) on the cheap using the strong dollar.
- High Yield– British Land is a REIT, and yields 5+%.
- Discount – Shares trade at about 70% of book value.
- Buyback – Management (rightly) perceives shares to be undervalued and has initiated a massive buyback, setting aside 300 million pounds ($393 million) for this.
- Sponsored ADR – British Land is listed on the London Stock Exchange, however the company has sponsored an ADR for the benefit of American investors.
What Could Go Wrong
- Brexit –The Pound and British real estate are cheap for a reason: the full impact of Brexit on the British economy is unknown. Additionally, financial companies may leave London as a result of Brexit, reducing demand for real estate.
Disclosure: I am long BTLCY, please read additional disclosures here before taking any action based on this post.