Sunday share tips: British Land, Land Securities

The Financial Mail on Sunday's Midas column judged shares of British Land and Land Securities were worth holding onto.

"Neither looks expensive at this level and the yields are attractive, but their valuation depends on how commercial property performs and how we change our working and commuting culture," the tipster said.

"Land Securities' balance sheet and forecasts would seem to give it the edge, but both companies are worth holding on to for now, if you can stand a bumpy ride."

Shares of both firms had fallen sharply amid the fallout of work-from-home and changing patterns for workplaces and commuting.

The two companies' hefty losses were the result of valuation losses that hit the profit and loss statement, Midas explained.

Yet rising income meant that dividends rose.

In the case of British Land, overall occupancy in fact stood at 96.7%, underlying profit - which strips out valuation changes - was ahead by 7% and the company was recycling capital through disposals.

On the other hand, analysts in the City believed that British Land's debt was less attractive.

Nonetheless, Midas said that "Neither looks expensive at this level and the yields are attractive, but their valuation depends on how commercial property performs and how we change our working and commuting culture.

"Land Securities' balance sheet and forecasts would seem to give it the edge, but both companies are worth holding on to for now, if you can stand a bumpy ride."