Three developing stories at the UK stock market open.
1. Target Healthcare REIT portfolio value upped 3%
There’s a half year report out from Target Healthcare REIT LON:THRL this morning noting a 1.8% increase in portfolio valuations to £925m and a 3% increase in rents. That contrasts against the market cap which last night stood at £563m, with management also noting the security of income streams and also the fact the business has the strongest EPC ratings of any UK listed real estate company. Whilst the sector may be under a bearish outlook given the broader economic situation, with the stock trading close to 12 month highs, is there more in the tank here?
2. Berkeley reaffirms guidance
Housebuilder Berkeley LON:BKG published a trading update for the four months to 1st February, reaffirming previous guidance to deliver at least £975m of pre-tax profit across the next two financial years. Management continue to applaud the step change in planning processes which are being pushed through by the new government, although remain concerned over the impact of regulatory change from recent years, with yet to be released details of the new Building Safe Levy some cause for concern.
3. Half year numbers from Pipehawk show return to profits despite revenue dip
Pipehawk LON:PIP issued a half year report this morning, with news that the picture may be improving, but it looks like a long road ahead. The company posted a £237k profit, up from a £398k loss for the comparative, but with costs still being incurred apace, including deferred director fees for H1 of £134k, combined with what is acknowledged as a far more lumpy sales cycle, even if the underlying position is improving, the assorted headwinds continue to blow.
