Premium content from Motley Fool Hidden Winners UK
Our monthly Best Buys Now are designed to highlight our teamâs three favourite, most timely Buys from our growing list of small-cap recommendations, to help Fools build out their stock portfolios.
“Best Buys Now” Pick #1:
LondonMetric Property (LSE:LMP)
Why we like it: âLondonMetric (LSE: LMP) owns a property portfolio thatâs skewed towards logistics (74.6% of the total) as well as grocery-led long-income (22.5%) assets. In our view, this is a quality mix that should perform well over the long term due to what we think are tailwinds for these sectors, and our assessment of its quality is perhaps backed up by the fact that the company has collected 99.5% of its rent in the year â despite a challenging real estate market.
âThe companyâs occupiers are also spread across different sectors, and it appears that the business has good relationships with its leading clients, who rate the company 9.1 out of 10 when asked if theyâd recommend LondonMetric as a landlord. The high customer satisfaction rating of its occupiers is coupled with long leases and, encouragingly, many of these businesses proved resilient during lockdowns and consistently paid their rents.â
Why we like it now: LondonMetricâs latest fiscal year saw progress in rental income, net assets per share, and the dividend. While economic growth is threatened by high inflation, the companyâs assets are potentially well placed to perform well in an inflationary environment, as they offer inflation protection through rental growth and inflation-linked leases, where higher inflation means higher rental uplifts (mainly relating to the companyâs grocery assets). We believe worries about industrial property values are already priced into the share price â with the business currently changing hands at about a 30% discount to net assets. Coupled with a seemingly resilient balance sheet, weâre compelled to make LondonMetric a Best Buy Now for this month.
“Best Buys Now” Pick #2:
Redacted
Want All 3 âBest Buys Nowâ Picks? Enter Your Email Address!
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.
The post Just released: our 3 best small-cap stocks to buy now [PREMIUM PICKS] appeared first on The Motley Fool UK.
Our best passive income stock ideas
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…
Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.
What’s more, today we’re giving away one of these stock picks, absolutely free!
Get your free passive income stock pick
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Is the Rolls-Royce share price NOW too cheap for investors to ignore?
How Iâd invest my £20k ISA to earn a second income of £125 a month
Better buy: Lloyds vs Greggs shares
2 UK stocks to buy as Japan set to raise rates!
How I’d build passive income streams with £5 per day
The Motley Fool UK has recommended LondonMetric Property. 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.