YOUR Space provides serviced office space and develops property for sale and its own use. It has operations in London, Willenhall and Manchester, along with development buildings in Liverpool.
From being the darling of the investment community,
any company with the remotest association with the property market is now regarded as the corporate equivalent of a dead man walking. This is harsh and financially myopic. Your Space is lightly researched but a recent report by WH Ireland underlines the appeal of the group.
In its note, Ireland said it considers the current unsettling conditions offer opportunities to capitalise on disused sites. Your Space specialises in upgrading buildings using its own staff. Your Space leases the property from a landlord with a view to sub-contracting out to tenants on a service basis.
In fact, arguably, Your Space is a beneficiary of a weaker property market by offering landlords an opportunity to realise capital from other projects. Taking on a longer-term sub-lease, the firm upgrades a property and then sub-lets it out at an enhanced per square foot value. This process provides landlords with cash and Your Space with funding opportunities. Whilst it does have one or two owned properties, the majority of transactions are with landlords so its actual exposure to a weak property market is very limited.
Having fallen from a peak of nearly 300p this time last year, the shares now offer a yield of more than 8 per cent on a more than adequate dividend cover. As and when the company's appeal enjoys a broader appreciation, so the share price should respond positively.
• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.
The full article contains 321 words and appears in The Scotsman newspaper.
