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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday share tips: Schroder Real Estate Investment Trust, SSP

(Sharecast News) - The Financial Mail on Sunday's Midas column tipped shares of Schroder Real Estate Investment Trust (SREIT) to its readers, predicting that they were set to rally.

"That was on top of the group's dividend, which was expected to hit nearly 8% for the year ending on 31 March and to continue growing.

At 42p, the stock is a buy, while generous dividends add to its appeal," the tipster said.

In particular, Midas explained that the company was planning to turn its property portfolio from brown to green and charge tenants more in the process.

Counter-intuitive as that might seem, given current economic conditions, energy-efficient buildings were often cheaper to run and costs lower - or at least the same as elsewhere - despite the higher rents.

Long-term fixed-rate debt issued when rates were low would help, Midas said.

Yet the company was fetching a market value of just £203m, whereas its independent valuers believed it was worth £458m.

Indeed, the shares had more than halved from their 2018 peak.

The Sunday Times's Lucy Tobin believes readers should 'buy' shares of SSP Group.

Its business had momentum on its side, as the latest figures from the International Air Transport Association showed, with passenger numbers near to hitting their levels from before the pandemic.

While the 600p pre-pandemic share price might never be revisited, the shares should certainly recover from their current low level, Tobin surmised.

She pointed to the company's "successful" growth, whether that be organic or non-organic to back up her case.

Analysts at Peel Hunt and Liberum were in a similar frame of mind.

The former judged the shares to be "very attractive" whilst the latter was expecting growth to continue into 2024.

"Dividend payouts were unleashed again last year and the momentum is now with SSP," Tobin said.

"Buy."

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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