Tag Archives: quarter
Buy to let rush boosted rental supply in the UK, especially London
The buy to let rush in the UK ahead of stamp duty changes in April boosted rental supply with London seeing the biggest increase, a new analysis report shows. The rental market received a boost of 8% more new properties advertised to rent in the second quarter of the year compared to the same quarter in 2015, according to the data from property portal Rightmove. The majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking rental price to just under £2,000 per month. Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way. The data also shows that rental enquiries were up 2% in the second quarter 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of a Brexit impact. The supply boost failed to stop rents rising 2.8% in the second quarter outside London in England and Wales, though this is only 0.1% higher than the rise in the second quarter of 2015. The East of England’s year on year increase of 5% was the highest of all regions, while the South East saw rents increase the most over the quarter, up by 5.1%. London saw the biggest increase in supply this quarter compared to any other region with growth of 22%, resulting in a fall in average asking rents by 1.1% to just under £2,000 per month. ‘The big spike in March transactions resulting from a large number of investors beating the more punitive stamp duty tax deadline has created a rental supply boost which is good news for prospective tenants actively looking for a new place to live,’ said Rightmove’s head of lettings Sam Mitchell. ‘Now that the stamp duty changes have come in this boost may be short-lived, as landlords consider whether or not to make further purchases. Our own research among landlords shows that just under a third of them are concerned that the stamp duty changes, plus the forthcoming tax relief changes, will potentially wipe out their profits,’ he explained. ‘Once the tax relief changes start to be phased in from next year new buy to let activity could slow further. However rental demand is still outstripping supply in many areas of the country so we may see a shift by investors to look in areas that offer better yields for long term property investments,’ he added. The report suggests that investors planning to continue expanding their portfolio could look to some of the areas with highest demand from prospective tenants. The top five places include Ashton-Under-Lyne, Stalybridge and Oldham in Greater Manchester where average asking rents for two bedroom properties are around £520 per month and you can buy a two bed… Continue reading
Survey: Farmland Values Continued To Rise In Second Quarter 2013
Farmland values continued to rise during the second quarter of 2013, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis. August 15, 2013 Farmland values continued to rise during the second quarter of 2013, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis. Farm income, as well as capital and household spending, also increased slightly compared with a year ago. The survey for the report was conducted from June 11 through June 28, 2013. The results were based on the responses of 48 agricultural banks located within the boundaries of the Eighth Federal Reserve District. The Eighth District comprises all or parts of the following seven Midwest and Mid-South States: Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee. Farmland Values On average, Eighth District quality farmland and ranch or pastureland prices were higher than first-quarter 2013 and second-quarter 2012 levels. In addition, many lenders reported that they expected prices for quality farmland and ranch or pastureland to increase in the third quarter relative to the third quarter 2012. Quality farmland prices averaged $5,672 per acre in the second quarter of 2013, up 11% from an average $5,111 in the first quarter of 2013 and up more than 20% from $4,705 per acre in the second quarter of 2012. Ranch and pastureland prices were also slightly higher in the second quarter of 2013, with District lenders reporting average prices of $2,372 per acre, up about 4% from $2,274 per acre in the first quarter 2013 and up close to 1% from $2,349 per acre the previous year. Looking ahead to the third quarter, lenders reported that they expect land values to rise relative to last year. “A proportionately larger number of respondents expect quality farmland and ranch or pastureland values to increase in the third quarter relative to a year earlier,” the report said. Using variables based on diffusion index methodology, the average expectations index for quality farmland in the third quarter of 2013 was 127, while for ranch and pastureland prices, the index value was 108. (With diffusion index methodology based on survey responses, 101-200 indicates overall expectations of higher values, while 0-99 indicates expectations of decreasing values. A value of 100 indicates expectations remain the same.) Farm Income Average farm income and spending rose slightly in the second quarter of 2013 compared with a year ago. “On net, respondents indicated that second-quarter District farm income, along with capital and household spending, increased modestly relative to their respective levels one year ago,” the report said. Based on diffusion index methodology, survey results showed an actual income index level of 108 for the second quarter of 2013 across the District. Looking ahead at the third quarter, lenders indicated they expected lower farm income, with survey results showing a diffusion index value of 91. “Across the District, bankers expect farm income to fall over the course of the next quarter compared with the third quarter of 2012,” according to the report. Cash Rents Average cash rents per acre for quality Eighth District farmland during the second quarter of 2013 were higher than the first quarter 2013 and the second quarter of 2012. For the second quarter 2013, cash rents for quality farmland averaged $183 per acre, up 6.7% from an average $171 per acre in the first quarter 2013 and up 12.9% from an average $162 per acre the previous year. Meanwhile, lenders reported cash rents for ranch or pastureland of $57 per acre, down from the first quarter’s average of $64 per acre, but remaining above last year’s average of $53 per acre. Looking forward, lenders expect rents to increase in value for all land categories during the third quarter of 2013. The report also noted that “anecdotal information collected from other sources suggests some shift in cash rents toward a variable or profit-sharing basis,” might not be fully captured in current cash rent data. Ag Loan Demand And Repayments On average, lenders reported that while demand for agricultural credit across the District remained unchanged in the second quarter compared with a year ago, they expected loan demand to pick up in the third quarter. In addition, survey results showed more funds were available to prospective borrowers during the second quarter of 2013 than a year ago, and this should remain the case in the third quarter. Loan repayment rates also remained essentially the same compared with a year ago, and expected to remain unchanged in the third quarter. Average interest rates on most types of loans increased slightly from the first quarter of 2013, with rates on variable interest loans increasing more than fixed-rate loans. Continue reading
Deere Reports Record 2Q Earnings – Analyst Blog
By Zacks.com , May 15, 2013 Driven by higher sales of farm machinery, Deere & Company ( DE ) reported record second quarter fiscal 2013 earnings of $1.08 billion or $2.76 per share compared with $1.056 billion or $2.61 per share earned in the prior-year quarter. Reported earnings per share were ahead of the Zacks Consensus Estimate of $2.74 per share. Operational Update Deere’s worldwide total sales increased 9% year over year to $10.9 billion, beating the Zacks Consensus Estimate of $9.8 billion. Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) were $10.3 billion, a 9% year-over-year increase including a price rise of 3% offset by an unfavorable currency translation effect of 2%. Region-wise, equipment net sales were up 9% in the United States and Canada and 9% in rest of the world. Cost of sales in the quarter climbed 9% to $7.48 billion. Selling, administrative and general expenses increased 8% to $956 million. Operating profit improved 8% year over year to $2.1 billion in the quarter. Operating income of equipment operations increased 9% to $1.66 billion as price realization, lower raw material costs and higher shipment volumes helped offset increased production costs and higher selling, administrative and general expenses and unfavorable effects of foreign-currency exchange. Segment Performance The Agriculture & Turf segment sales increased 12% to $8.69 billion, attributable to higher shipment volumes and improved price realization, partially offset by a negative currency translation. Operating profit of the segment improved 13% to $1.58 million. The increase in operating profit was based on higher shipment and improved price realization, partially offset by increases in selling, general and administrative expenses, production costs as well as unfavorable effects of foreign exchange . Construction & Forestry experienced a 6% year-over-year decline in sales to $1.57 billion, due to lower shipment volumes. The segment operating profit plunged 32% year over year to $81 million, driven by lower shipment, higher production costs along with higher selling, general and administrative and research and development expenses, which offset the benefit from improved price realization. Net revenue at Deere’s Financial Services operations was $536 million in the reported quarter, up 10% year over year. Net income in this segment was $125 million compared with $109 million in the year-ago quarter. The improvement stemmed from growth in the credit portfolio and higher crop insurance margins, partially offset by increased selling, administrative and general expenses. Financial Position As of Apr 30, 2013, Deere had cash and cash equivalents of $3.65 billion, up from $3.02 billion as of Apr 30, 2012. Long-term borrowings increased to $21.7 billion as of Apr 30, 2013 from $18.7 billion as of Apr 30, 2012. The company used net cash flow for operating activities of $1.16 billion during the first half of fiscal 2013 compared with $1.53 billion in the prior-year comparable period. Looking Forward Deere expects equipment sales to grow around 3% in the third quarter of fiscal 2013 and 5% for the full year. Net income is projected at $3.3 billion for fiscal 2013. Segment-wise, Deere expects worldwide sales of Agriculture and Turf equipment to grow 7% in fiscal 2013. Higher commodity prices and strong farm incomes are expected boost demand for farm machinery during the year. Furthermore, Deere’s sales are expected to benefit from global expansion and new lines of advanced equipment. Region-wise, Deere expects industry farm-machinery sales in the U.S. and Canada to increase 5% year over year in 2013. In Europe, sales are projected to be down 5% due to continued deterioration in the overall economy and the poor harvest in the U.K. last year. Sales in the Commonwealth of Independent States are expected to witness a slight decline. Sales in Asia are expected to be flat year-over-year. Industry sales of turf and utility equipment in the U.S. and Canada are expected to be flat-to-down slightly year-over-year due to cool, wet spring in North America and reflecting a cautious consumer outlook. Construction & Forestry equipment are expected to decline 5% in 2013, driven by cool, wet weather conditions in North America, flat sales in world forestry markets and reflecting a cautious outlook for U.S. economic growth. Weakness in the European markets will continue to affect the forestry markets. Net income from Financial Services is estimated at around $550 million. Our View Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Deere will benefit from relatively high commodity prices and strong farm incomes, recovery in construction sector and strength in Brazil. However, continued weakness in the European markets, additional import duty imposed in Russia, Kazakhstan and Belarus, margin headwinds which include higher production costs associated with interim Tier 4 as well as global growth expenses remain concerns. Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and dealers for the resale of products internationally. Deere currently holds a Zacks Rank #3 (Hold). Other stocks in the industrial products sector with a favorable Zacks Rank are Alamo Group, Inc. ( ALG ), AO Smith Corp. ( AOS ) and CNH Global NV ( CNH ) with a Zacks Rank #2 (Buy) Read more: http://www.nasdaq.co…8#ixzz2TQoTQtrI Continue reading
