British Land: Brexit brakes on commercial property

4) British Land Co.

British Land is one of the biggest UK Real Estate Investment Trusts (REIT), and is currently suffering record fund outflows due to concerns the UK may vote to leave the EU in June. We still expect an eventual ‘stay’ vote as uncertainty and fear approach critical levels over the next two months. The question is simply whether or not such uncertainty is priced in. If yes, then BLND looks poised for a strong rebound from current levels. A recent break back above the 50-day moving average and February rising lows just about holding up would provide technical support to this argument.

However, one can’t ignore the skittishness and short sightedness of many an investor in current climes. The rate at which capital is currently being removed from London and South East based REITs is a concern and should be watched closely, but remember that fear in the market sometimes simply gets the medium to long term investors a better price…

British Land Co PLC (-)

Do you think shares in British Land will fall back towards the lows of 450p or rally back to the highs of 880p?

Broker Consensus (Source: Bloomberg, 31 Mar)

blnd consensus

Another stock on which the brokers are bullish, the average target price implies 25% upside from current levels while the most bullish broker, Panmure Gordon, is looking for a breakout above all-time highs in 2016. Only 2 brokers out of 18 have targets below the current price.

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