Write 2 pages with APA style on REIT Project. THE BRITISH LAND COMPANY Plc. London Stock Exchange Sector: Financials Industry: REIT –Residential & Commercial Stock Symbol: BLND. RECOMMENDATION: HO

Write 2 pages with APA style on REIT Project. THE BRITISH LAND COMPANY Plc.

London Stock Exchange Sector: Financials Industry: REIT –Residential & Commercial Stock Symbol: BLND. RECOMMENDATION: HOLD PRICE: 378 Gp AS OF July2, 2009 Volume 4,063,468 Days High 379.25p Days Low 371.50p Avg. Vol 5,343,894

Target: N/A

Market Cap: N/A

Dividend Yield: N/A

FFO per share N/A

July 2, 2009

Felix Salmon

Symbol: BLND

Company description: The British Land Company PLC operates in the fields of property development, finance and investment in London. The Company’s retail warehouse park investments include Teesside Shopping Park, Giltbrook Retail Park, The Kingston Centre, New Mersey Shopping Park, Glasgow Fort, Parkgate Shopping. Significant financial developments have occurred in the past two years that led to decrease of revenues to 16 percent to £554M and a net loss of £63l 93B up from £1.61B as of March 2009 according to report of Reuters. Based on Reuters report, BLC posted negative performance for the year ended as it has negative operating margin of -65.16 B and a negative net profit margin of -700.54bn. Percentage of management effectiveness are nestled on high negative ratios.. It has low cash availability and zero cash flow which shows company relies heavily on debt borrowings. It has a total debt equity ratio of 117.76% that is a risky investment because of high cost of money. The company has no dividend yield and zero growth rates for the past two years

There is no available property map that depicts location of properties of BLC. Based on Yahoo Finance, BLC is the biggest real estate management company in London. One of their properties is over 12 hectares property in Broadgate Complex which houses offices, stores, hotel rooms and a large shopping mall. It has also numerous sites acquired thru joint ventures like The Meadowhall BLC and The Pillar Property that is made up of shopping centers. (Yahoo Finance)

Investment Thesis. In the face of challenges of REIT companies due to slowing economy and global financial crisis, is Brit Land Co. affected in terms of growth ratios, performance and return on investment. Buy/Hold Recommendation. I will recommend hold buying for the shares of stock in Brit Land Co., until such time that they have corrected the profitability of the company. Company has been affected by economic crisis which started in mortgage and realty industry. The slow down on property market have affected the financial performance of the company resulting to the loss of confidence of stock holders.

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Annexes

Financial Ratios Brit Land Co. Plc.

Top of Form

Market Capitalisation

Market Cap (£&nbsp.Millions)

3,315.03

Shares Outstanding

852.19

Float

851.20

Per Share Data (£ &nbsp. GBP)

Earnin

-6.17

Sales

0.88

Book Value

3.77

Cash Flow

--

Cash

0.74

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Valuation Ratios

Price/Earnings

--

Price/Sales

5.98

Price/Book

1.03

Price/Cash Flow

--

Management Effectiveness (%)

Return on Equity

-77.63

Return on Assets

-38.38

Return on Investment

-40.67

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Profitability Ratios (%)

Gross Margin

--

Operating Margin

-65.16

Net Profit Margin

-700.54

Dividend Information

Dividend Yield (%)

--

Dividend Per Share (£ &nbsp. GBP)

0.30

Payout Ratio

--

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Financial Strength

Quick Ratio

1.29

Current Ratio

1.29

LT Debt/Equity

116.24

Total Debt/Equity

117.76

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Source: Reuters Financial ratios

Works Cited

Business Week. “Historical stock quote”. British Land Company, Plc. On line July 1, 2009 http://investing.businessweek.com/re search/stocks/snapshot/snapshot.asp?ric=BLND.

Reuters. ”Financial Highlights” British Land Company, Plc. On Line July 1, 2009 http://in.reuters.com/money/quotes/ratios?symbol=BLND.L

Yahoo Finance. ”Company profile” British Land Company, Plc. On line July 1, 2009 http://uk.finance.yahoo.com/q?s=BLND.L

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