London-focused property regeneration specialist and property investor Quintain Estates & Development (QED) advances 2.1% to 107.2p on valuation gains and asset maturities.
The momentum building in the property market saw Quintain’s net asset value (NAV) rise 6% to 122p a share during the year to end of March. This was led by a re-evaluation of its development land at Wembley Park which is now worth 13.8% more than it was 12 months earlier at £395.7 million.
Such gains have improved Quintain’s valuation. The company can now be bought on a 12.1% discount to net asset value.
Barclays analysts are fans of Quintain’s strategy. ‘We still see good upside in the stock at current valuations, and the acceleration of future developments should help to deliver stronger NAV growth as profits crystallise earlier.’
These developments include building houses at its Wembley site, funded by recycling the proceeds of several asset sales. Quintain has planning for more than 4,000 homes on the site.
One such deal involved selling its half of the Hilton hotel in Wembley to joint venture partner Oaktree Capital for £40 million – a £6 million premium.