Are Land Security Shares Worth buying?
Finding the right UK stocks and shares to invest in while the country goes through Brexit is difficult. If you’re an investor, you may be hesitant to buy shares in British companies during the current political uncertainty.
However, if you avoid UK shares altogether, you may miss out on many fantastic opportunities. As we’ve pointed out in previous blog entries, the uncertainty created by Brexit won’t last forever: it’s therefore important to look at a share’s post-Brexit potential.
The shares of one particular company seem poised to shoot up in value the moment that the issues surrounding Brexit are resolved. That company is Land Securities (which trades on the FTSE 100 as LSE:LAND.)
Over the past two years, the price of Land Security’s shares has decreased by just under 20% and has underperformed by 30% compared to the overall FTSE. As a result, its share prices are at an all-time low of 916.50p.
However, according to the investment advice website ‘The Motley Fool’, the primary reason for Land Security’s poor performance over the past two years has been Brexit. According to the website, share prices have been kept down by “concerns about the impact Brexit might have on the UK property market” (source).
This is borne out by the company’s pre-Brexit performance. By looking at the company’s performance over the past five years, one can see that it consistently outperformed the overall FTSE 100 until 2017.
The company’s pre-Brexit performance suggests that its share prices could bounce back once there is more certainty surrounding the process. Furthermore, Land Security is the largest publicly traded Landlord in the UK. Land is famous for holding its value and Land Security owns, sells and rents more of it than any other single company. Its business model is sound and it has a product that is always in demand.
While there is no such thing as certainty on the stock market, it would be very surprising if its prices didn’t start to rise soon.
If you’re looking for an affordable, low risk share that has been reduced in price by temporary, external forces, Land Securities could be an option to look into. Depending on how quickly and smoothly Brexit proceeds, you may be able to sell the shares at a profit sooner than you think.