British Land Company PLC (LSE:BLND)'s shares pushed higher after what Stifel called "a resilient set of results given the market backdrop."
The broker pointed out the portfolio valuation is down just 2.5%, taking the net tangible asset to 565p, which now appears to be approaching the "nadir."
The portfolio is valued at an average equivalent yield of 6.1%, leaving a spread of 180bps over the 5-year swap rate, it added, while earnings and dividend were both ahead of expectations.
The EPRA cost ratio is down to 14.8%; however, Stifel noted part of this is from one-off payments due to the collection of rent arrears from Arcadia.
The full-year cost ratio is expected to be closer to (but lower than) 19.5%, it added.
Letting performance continues to be strong and management now expects estimated rental value growth to be at the top end of guidance (2-5%) for the financial year 2024, the broker pointed out.
"Given the clear slowdown in valuation declines and increased clarity of future interest rates, we think the shares look oversold at a 44% discount to spot NTA," the broker said.
The shares also offer an attractive 6.8% dividend yield, the broker added.