H1 Results Lawson 76, Hi H2, Like you I am holding L & G for the long term! I think in view of the market`s volatility during this last half year, their result is pretty good. As you imply hopefully it will improve in the next half year?
H1 Results Looks like most of the business has been making progress, but gains made were wiped out by lower “positive investment variance” 33m Vs 175m in 2017, a disappointment aggravated by being pompous nonsense. Profit before tax decreased due to lower positive investment variance as a result of volatility in global financial markets in H1 2018 (H1 2018: £33m, H1 2017: £175m). This included a £(90)m (H1 2017: £52m) loss primarily from the LGC traded assets portfolio, reflecting market performance versus our long term economic assumptions. FTSE was down 0.7% in H1 Vs up 2.4% in H1 17 but I guess they lost money in other areas, hardly a shining record for an Investment management company to hold up if they can’t make money with their (out) own money but hopefully they will do better over the longer term. Actually overall I think this is not a bad result despite the Net profit fall of 9% (exc mortality release) and EPS fall of 8% due to above and non-recurrence of mortality release in H1 2017. Int divi up from 4.3 to 4.6p. Interesting to see if this sends SP back into the downtrend, I’m holding for the long term and expected 6%+ forward yield. H2
Capital Markets Event LGIM 20 Jun LGEN a little weaker last few weeks, Wed’s event may bring a little interest. H2
Risk Taking Me too. I have been trolling these boards for many years, more off than on, and regularly sought out LKH, Games, Eadwig et al to make sense of everything. I say trolling, because on the old platform I was never able to work out how to contribute so every time I clicked reply, it wanted me to go through hoops beyond those I went through to become an ii(i) investor in the first place. Now, here I am trying again and at least it is letting me compose a message, although god knows what hoops it is about to throw up. Anyway, I just wanted to add my thanks and best wishes to the lord of the flybridge who managed to (partially) edumacate this particular dweeb.
Re: Intends to buy and develop propertie... And also, if L & G wish greater exposure to the residential property market, they should do so via a fund set up for the purpose, not with their shareholders funds. We wouldn't expect our REITS investments to be offering financial services on the side.
Re: Intends to buy and develop propertie... Thanks Bowman, that is very interesting.So presumably the flip side of "affordable rent" is; if you can afford the rent you can get a 20% discount. If you can't afford it, then you are eligible for housing association rent, which is less, and if you are the working poor and least able to afford it, you pay a premium and can be slung out on a whim.Never rented, and the above observation does not reflect my politics, simply an observation on the google. Best wishes.
JP Morgan reiterates underweight JP Morgan reiterates underweight with a target price of 258p
Re: Intends to buy and develop propertie... Whats the difference between affordable rent and just normal rent....and why do some people pay affordable and some normal
Landlord & General Even if the diversification into housing flops financially(unlikely)-at least it will have made a meaningful social contribution.It displays innovative thinking by senior management and there is no reasonwhy a company with long term pension commitments should not be able to partially match these with a stream of future rental income.(holder)
Affordable Housing at L&G-New Division Todays GuardianThe UK insurer Legal & General is launching an affordable housing business with the aim of providing 3,000 new homes a year within four years.L&G said it was in the process of recruiting a management team to run the new division, which is expected to build and buy homes to address a chronic shortfall of affordable housing.Affordable housing is a classic example of underinvestment with minimal new equity capital being deployed to the sector, the L&G chief executive, Nigel Wilson, said.Renting property: how does it compare around the world? Read moreThis is not a sustainable position either for the sector or for the 1.3m households currently on a waiting list.The affordable homes business marks L&Gs latest move into the UK housing market, where it is becoming a significant player. The insurer is already investing about £1.5bn in the build-to-rent sector, with sites in Bristol, Edinburgh, Salford, Bath, Brighton, Leeds and Walthamstow.It aims to have 6,000 build-to-rent homes in planning, development or operation by the end of 2019.L&G has also promised to revolutionise the housebuilding industry by constructing thousands of prefab homes from its new modular housing factory in Leeds. The homes are made and fitted out in the factory before being transported to their destinations on the back of trucks.The new affordable-homes business will become a subsidiary of Legal & General Capital (LGC), which focuses on areas where there has been a lack of investment and innovation.L&G said it would offer a more sustainable approach to providing affordable homes after housing associations have taken on a lot of debt over the years to fund developments.Theresa May has described the national housing crisis as one of the biggest barriers to social mobility in Britain, with 300,000 new homes a year needed to address the shortage. She has argued that key workers such as nurses, teachers and firefighters should be the priority for affordable homes.A shortage of homes in the UK has helped to support house prices in recent months, despite a slowing economy and weaker consumer spending.The average price of a home edged up 0.2% to £213,000 in April, according to the mortgage lender Nationwide, following two consecutive monthly falls.It pushed up the annual rate of growth in house prices to 2.6%, from 2.1% in March.[link]
Re: Intends to buy and develop propertie... So if LGEN's build-to-sell business is called Cala, what will it call its build-to-rent enterprise? Lala?Who is defining "affordable"? Affordable for local authorities to place families otherwise perched in hotels? Or affordable for me to retire in?LGEN no doubt has an ethical model in mind working with housing associations, a genuine attempt to ease the low end housing crisis. And hopefully make money for itself (us), not necessarily in that order. However, a layer of property head lease, property management and sub-let rental agency plus financing costs has me wondering who the deal works for most ... if LGEN remains the landlord then fine, but if it sells on its portfolio to groups like Harbourvest / Helical / Rothesay Life who securitise ground rent and lease revenue streams in order to pay out on annuity commitments then someone will already be imagining ways to exploit the situation eg whopping commissions on the building insurance like the Peverel/Tchenguiz rip off.LGEN will make its money either way I suppose.Who is the prime mover in this build-to-affordable rent industry, is there something we can analyse to wonder how it might work for LGEN and we investors?
Re: Halved it Good point BB well made sorry too late to go back and change it.
Re: Intends to buy and develop properties fo... LONDON, April 27 (Reuters) - British insurer Legal & General on Friday launched a unit to build affordable homes and said it aimed to build 3,000 homes a year within the next four years to become the country's leading private providerYears of under-investment meant the country is producing 100,000 fewer homes a year than it needs, L&G said in a statement, while the annual shortfall for affordable housing is some 30,000 homes, leaving 1.3 million people on waiting lists.Legal & General Affordable Homes, part of the insurer's Legal & General Capital arm, would provide capital and work with a range of existing affordable housing providers to help manage the properties, it said."Affordable housing is a classic example of underinvestment with minimal new equity capital being deployed to the sector," L&G Chief Executive Nigel Wilson said. "This is not a sustainable position."Many existing providers were highly leveraged and unable to raise equity to help maintain a sustainable financial structure, said Head of Affordable Housing Simon Century, a fact which limited their ability to grow."Legal & General Capital is building a more natural and sustainable model one in which institutional investors are the long-term holders of the assets working alongside the best-in-class affordable housing operators who will provide the highest-quality housing management." (Reporting by Simon Jessop; editing by David Evans)
Intends to buy and develop properties for affordable rent ONDON (Alliance News) - Legal & General Group PLC intends to buy and develop properties for affordable rent built by other developers, the Financial Times reported on Friday.The UK insurer is at a very early stage of new business development, as it just has started employing a management team and is working with the social housing regulator to gain approval, the newspaper said.The FT noted an increased interest in social housing among investors over the past few years.Legal & General's housebuilding business already has a pipeline of about 3,000 homes across sites in Oxfordshire and Berkshire and is one of the major lenders to developers in the build-to-rent market, it said.[link]
Re: Halved it MarktimeI understand the idea behind trading a % of your holding on the noise in the sp, and there's nothing wrong with that. Call me pedantic though if you like, but if it's a "Strong Sell" then why only see half your holding ?I'd have gone for "Weak Sell" myself, which, to me, equates to a broker recommendation of "Reduce", whereas "Strong Sell" is more of "Get The F00k out of here right now" kind of thing !BB - holding at the moment, but by no means against reducing or selling up if the time seems right.