The biggest news from LAND in 2017 was the return of a significant amount of capital to shareholders through a special dividend and 15 for 16 shares consolidation. The return of capital makes any value analysis based on the 2017 Annual Report subject to some error as the return of capital took place after the publication of the Annual Report.
The return of capital took place on 27 September and LAND’s half year review in 2017 covers the period up to 30 September 2017. The main reason for considering LAND as a value investor was the relationship between the price and there value of assets so a return of capital corporate action can impact the analysis.
Value investors get a considerable margin of safety at current prices when comparing price to assets using the data from the 2017 Annual Report or the half year update in November 2017.
There may be some concern for value investors when considering price to earnings data, which does make LAND look a bit expensive. So, to find out the exactly why value investors would consider an investment in Land Securities Group Plc click here to download the new analysis.
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