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Primary Recommendation

Watkin Jones - A play on the Build to Rent space

June 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • WJG
  • Price:
  • 218.5p
Since I first highlighted student accommodation builder Watkin Jones it has caught the imagination spectacularly. The company buys land, builds student accommodation blocks and then sells the whole development to institutional investors. The shares took off in the first few months after the float in May 2016, raising the price-earnings ratio to a premium rating for a housebuilder as investors discounted years of fast growth to come. Student accommodation has since seen institutional money pour into the sector with 602,000 purpose built student accommodation (PBSA) beds in the UK and £4.1bn of purpose built student property traded during 2017. As the share price chart on page 4 shows, until recently the shares were becalm ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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