Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. IHG RevPAR returns to pre-COVID levels
Another strong set of numbers from Intercontinental Hotels Group LON:IHG saw operating profits jump 23% whilst adjusted EPS advanced 33%. Shareholders are being rewarded with a 10% uptick in dividend payments, along with a new $800m share buyback programme. Perhaps most critically, RevPAR is now above pre-COVID levels and with the Jan 1st reading of this metric being some 16% higher than it was a year earlier, management are confident of maintaining the momentum here.
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#2. Barclays debt defaults rising, but divi up and new share buyback announced
Full year numbers from Barclays LON:BARC are out this morning and it’s something of a mixed bag. Attributable profits are down around 20% to £4.3bn, the Return on Tangible Equity o a statutory basis fell from 10.4% to 9% and the loan loss rate came in at 46 bps. That significantly higher than the figure posted a year ago and bucks the trend seen from other banks, with management expecting this loss rate to move slightly higher throughout the remainder of the cycle. Regardless, investors are seeing a 10% uptick in dividends and a new £1bn share buyback scheme will be launched, too.
#3. Lok’nStore falling volumes offset by robust pricing
There’s a trading update out from Lok’nStore LON:LOK covering the six months to January 31stl. Revenues are up 4.9%, with a decline in the volume of occupied space being offset by growth in prices per square foot. The company continues to grow its footprint, whilst it has also refinanced some debt at lower rates, further bolstering the balance sheet.
