REIT Project Essay Example | Topics and Well Written Essays - 500 words

REIT Project - Essay Example 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 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 mo ney. 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