Capital & Regional (CAL)

Sector:

Real Estate

Index:

FTSE Small Cap

62.80p
   
  • Change Today:
    -0.40p
  • 52 Week High: 71.40p
  • 52 Week Low: 49.20p
  • Currency: UK Pounds
  • Shares Issued: 233.00m
  • Volume: 69,459
  • Market Cap: £146.32m
  • RiskGrade: 438

JP Morgan sees rents falling as it cuts ratings for commercial property

By Abigail Townsend

Date: Monday 21 Jan 2019

LONDON (ShareCast) - (Sharecast News) - JP Morgan Cazenove has downgraded a host of European property companies, including FTSE 250 firm Hammerson, as the UK retail sector continues to battle weak consumer sentiment.
The bank, which last downgraded the sector in September 2018, said in a note published on Monday that it was factoring in even lower rental growth for European retail property owners.

"This is due to the deterioration in UK retail news flow which accelerated through Christmas 2018 and into the new year," it explained. "We believe that buyers of malls will increasingly incorporate expectations of negative future rental growth into their forecasts, which will be reflected in outward yield shift going forward."

It added: "We also reflect investor risk appetite for listed retail companies by taking a more conservative capital structure for our [weighted average cost of capital] estimates."

The UK's retail sector has struggled as uncertainly around Brexit curtails consumer spending despite high employment and accelerating wage growth. A number of big-name retailers, including John Lewis, Marks & Spencer and Debenhams, have reported disappointing festive seasons, while HMV called in the administrators three days after Christmas.

In November, shares in Intu Properties - owner of Old Trafford in Manchester and Lakeside in Essex - plunged after a consortium blamed macroeconomic uncertainly and "volatility across markets" for walking away from a £2.9bn takeover offer.

The Royal Institution for Chartered Surveyors has even taken the unusual step of warning valuers to be aware of potential for "significant changes in value" when valuing retail properties. According to The Sunday Times, RICS issued the guidance in December.

RICS also told valuers to be aware of "seismic" shifts in shopping habits, as shoppers continued to abandon bricks and mortar for online rivals, leaving retailers eager to get out of costly, long-term leases.

As well as Hammerson, owner of the Bullring in Birmingham, European retail owners downgraded by JP Morgan Cazenove include Shaftesbury, which owns properties in London's West End, and in-town shopping centre operator Capital & Regional. All were cut to 'neutral' recommendations. Overall, JP Morgan Cazenove said it had downgraded price targets by an average of 13.9% for 20 stocks.

As at 12.30pm GMT, shares in Hammerson were off 3%, Shaftesbury was flat at 837p and Capital & Regional was unchanged at 29p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CAL Market Data

Currency UK Pounds
Share Price 62.80p
Change Today -0.40p
% Change -0.63 %
52 Week High 71.40p
52 Week Low 49.20p
Volume 69,459
Shares Issued 233.00m
Market Cap £146.32m
RiskGrade 438

CAL Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.47% above the market average84.47% above the market average84.47% above the market average84.47% above the market average84.47% above the market average
89.47% above the sector average89.47% above the sector average89.47% above the sector average89.47% above the sector average89.47% above the sector average
Price Trend
75.79% above the market average75.79% above the market average75.79% above the market average75.79% above the market average75.79% above the market average
85.37% above the sector average85.37% above the sector average85.37% above the sector average85.37% above the sector average85.37% above the sector average
Income
94.11% above the market average94.11% above the market average94.11% above the market average94.11% above the market average94.11% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
91.07% below the market average91.07% below the market average91.07% below the market average91.07% below the market average91.07% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CAL Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-24 11-Apr-24
Paid 27-Sep-24 07-Jun-24
Amount 2.85p 2.95p

Trades for 31-Oct-2024

Time Volume / Share Price
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