2 FTSE 250 property shares I’d buy in the stock market crash

first_img2 FTSE 250 property shares I’d buy in the stock market crash Alan Oscroft | Thursday, 15th October, 2020 | More on: CSP LMP See all posts by Alan Oscroft Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended LondonMetric Property PLC. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images A real estate investment trust (REIT) might not seem attractive in the current stock market crash. Especially FTSE 250 member LondonMetric Property (LSE: LMP) which is big in retail properties, now that sector has been hammered. The shares did crash heavily early in the year, in line with the mid-cap index. But after a strong recovery, we’re looking at a year-to-date fall of only 7%.We had an update from LondonMetric on Thursday, describing some acquisitions and disposals. The firm has sold four retail properties, including two M&S Food stores, for a total of £22.2m. Against that, it’s spent £10.8m buying three convenience service stations. With the bricks-and-mortar retail industry under pressure, I think that could turn out to be a canny move. The latest moves come on top of several acquisitions and disposals in recent months, and I think LondonMetric is making the most of opportunities thrown up by the stock market crash.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The disposals have realised a £4.1m profit on cost, for an ungeared internal rate of return of 11% per year. That sounds like good investment management to me. The newly acquired service stations should provide a net initial yield of 4.7%, rising to 5.2% over five years. They’re let to BP for another 16 years, and LondonMetric says their “vacant possession value is materially above the purchase price“.LondonMetric has been paying nicely progressive dividends for years, and forecasts suggest more of the same. We’re looking at forward yields of close to 4%. I like investment trusts, I like REITS, and if you fancy a property investment, I rate LondonMetric as an attractive buy.Stock market crash loserShares in FTSE 250 housebuilder Countryside Properties (LSE: CSP) have been doing less well in 2020. The shares were storming ahead in the first couple of months of the year. But the stock market crash sent them spiralling downwards. As I write, the price is down 27% year-to-date. And it’s fallen 4.5% on the day, after the release of a full-year trading update.Total completions for the year are down, to 4,053 homes from 5,733 homes in 2019. And the average selling price has dropped a little, from £367,000 to £364,000. But looking forward, the company is enjoying a boost to its order book, up 17% to £1.4bn.The balance sheet was a problem earlier in the stock market crash, which Countryside addressed with a new share issue in July. It placed 74.6m new shares, raising £250m. The result is net cash at 30 September of £98.2m, from £73.4m a year previously. The firm got the share placing done without problems, suggesting to me that institutional investors are bullish over the long-term prospects for the housebuilding industry. I am too.The dividend has been suspended in this tough year, in which analysts expect earnings to fall heavily. But a partial rebound on the cards for 2021 would put Countryside Properties shares on a price-to-earnings multiple of around 16.5. I expect that to drop significantly in 2022. I rate Countryside Properties a buy, along with the sector as a whole.last_img

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