Offering growth & value in all-weathers
Watkin Jones is a rare breed. Not only is this developer & manager of large scale, multi occupancy property bucking the wider UK economic trends. But also the company is benefitting from the long term secular tailwinds supporting in its 2 key markets of Build to Rent (BtR) & student accommodation (PBSA).What’s more the business is performing well, with the CEO Richard Simpson saying this morning that “trading remained strong through Q4’19, …[and] the Board expects to report FY19 revenues and earnings in line with expectations, together with a good cash performanceâ€.
Moreover, it appears the medium term opportunity is actually much larger than we’d previously thought. With management adding that the company is now targeting an annual run-rate of 3,500 PBSA beds (vs 2,723 FY19), along with 1,000 BtR (0) apartments from FY24 onwards.
Sure, this doesn’t change our near term numbers. Yet further out it provides a material boost to our FY23-24 projections – lifting the valuation to 300p/share vs 250p before. FY19 prelims are set for release on Tuesday 14th January 2020.
Watkin Jones is a holding company. Through its subsidiaries, Co. is engaged in the property development and the management of properties for multiple residential occupation. Co. operates in the following segments: student accommodation, which is engaged in the development of purpose built student accommodation; build to rent, which is engaged in the development of build to rent accommodation; residential, which is engaged in the development of residential property; and accommodation management, which is engaged in the management of student accommodation and build to rent property.
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