Watkin Jones provides an end-to-end solution in developing large scale, multi occupancy accommodation projects, with a primary focus on the student accommodation market.
Temporary suspension of non-essential work
The CEO discusses their strategy at our Investor Forum
Full year results interview with CEO Richard Simpson
Wonderful business at an attractive price
Offering the best of both worlds
Full house of property deals
Upbeat H1 & in line with FY19 estimates
Interim Results Interview with CEO and FD - May 2019
Top of the Props
full year results interview with Management
Following Watkin Jones' FY2019 results, new CEO Richard Simpson discusses the macro picture for both student accommodation and Build-to-Rent. Group Finance Director Phil Byrom outlines the strong on-going appetite from institutional investors for these investment classes.
'The Mozart' of the property world
Another cracking year
£180m forward sale of 4 student sites
Two new sites boost forward visibility
Watkin Jones Plc
On track for another record year
An interview with the CEO and CFO about results and prospects
Excellent end of term report
Ready for the start of term
View the Results Webinar
Graduating with honours
Watkin Jones has reported a robust set of interim results with PBT, EPS and DPS coming in ahead of our expectations. This company operates in two of the hottest areas of residential real estate, namely purpose-built student accommodation (PBSA) and build to rent sector (BTR) and it operates a lower risk model. Therefore we believe it should trade at a bigger premium to other housebuilders.
The company produced another strong set of results during H1. Despite an expected 8.4% decline in H1 revenues, significant margin gains drove a 23.8% increase in gross profits. Adjusted PBT rose 26.6% to Â£21.1m; EPS +28.8% to 6.7p. The company reported an interim DPS of 2.2p.
PBSA development: the company's largest division reported strong profit growth H1 with a significant increase in gross margins. Visibility of sales and earnings is very high in this division. It is set to have a very good second half with growth in revenues and margins YOY.
PBSA management: Fresh Student Living continues to grow its number of beds under management. It currently has 12,117 beds under management and this is set to grow to 19,532 by 2020.
BTR development: WJG completed its first BTR development in Leeds in the period. With a site with planning secured in Sutton and two further sites progressing through planning, we believe the medium term opportunity within this space is significant.
BTR management: the newest part of the group, Five Nine manages the Leeds scheme and currently has 535 BTR units under management.
Watkin Jonesâ€™ shares trade on 14.1x PER for September 2017 with a 3.5% dividend yield. For the following year the PER falls to 12.9x and a yield of 3.8%. This appears undemanding given the groupâ€™s consistent long term record of' growth, its strong cash generation, and its excellent medium term prospects as a leading developer within the growing UK student accommodation market.