JPM | Building Broadcast: HEI,BZU,GET,FGR,FER,FRA, VTY,PSN: JPMC Construction Daily

Research evidence excerpt

JPM | Building Broadcast: HEI,BZU,GET,FGR,FER,FRA, VTY,PSN: JPMC Construction Daily

ite-by-site basis and thus should the

company slow down the pace of delivery, management does not see a major impact; 4)

Strategy. A large proportion of its land is delivering in line with its strategic objectives and

thus the company is confident that it can replicate this for the group overall. The company

also wants to look at its capital structure; 5) Leverage. Management does think that in

general its business model can be more levered than the traditional housebuilder; 6)

Banking covenants. The company stated that it has a good relationship with its banks and

so far the discussions are very positive; 7) Affordable Homes. The RPs have made progress

in advance of the funding coming from the affordable homes programme; 8) Incentives.

These were quite strong in H1 and management is expecting to wind them down in H2; 9)

JVs. This will continue to be a core part of the business as they work well on a risk-share/

capital-share basis; 10) Equity raise. Management has no plans for an equity raise; and 11)

Land Sales. These are expected to be higher than previously expected. Link to our report.

• UK June RICS House Price Balance Rise to -33%; Est. -30%. Bloomberg reports that

the UK's RICS house price balance rose less than economists expected in June, increasing

from a revised -34% in May to -33% (consensus: -30%). The institution said the survey

‘points to only tentative signs of improvement, despite the recent easing in global

geopolitical tensions and the associated unwinding in oil prices. That said, anecdotal

remarks from respondents suggest that domestic political uncertainty is emerging as

another headwind for the market. Overall, activity indicators remain subdued, although the