Belvoir’s latest statement underlined its resilience, said house broker finnCap, which has upgraded its full-year 2002 numbers slightly as a result but reduced expectations further out.
Recurring lettings revenue accounts for around 56% of the group's gross profit and is supported by rising rents.
Rents on new tenancies were up 10.8% during the year and will progressively filter through to Belvoir’s income, though the recovery in mortgages and sales will build more slowly during the current year.
As a result, finnCap now expects 2023 earnings to dip by 13% and 9% in 2024, though dividend forecasts are unchanged.
Given the free cash flow yield of 10.7%, there is still significant share price upside added the house,broker which has a target price of 375p.