The Motley Fool

2 ‘secret’ winners from the e-commerce boom to watch in 2018

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image depicting web connectivity from a mobile phone
Image source: Getty Images.

The latest figures for UK consumer spending show that even as consumer confidence weakens and overall spending declines, e-commerce sales continue to grow at a solid clip. Investors looking to cash in on this trend can, of course, invest directly in the likes of Asos or Ocado.

But if this method is a bit too narrow for your tastes, an easier way to profit may be to invest in the property companies that own the warehouses that support package storage, sorting and shipping.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

A history of success not to be ignored

This is one area where Hansteen Holdings (LSE: HSTN) shines with its portfolio of around 300 estates in the UK and a smattering in Belgium and France that support a respectable 3.9% dividend yield. The group focusses solely on industrial properties and has a wide variety of tenants that provide a very nice level of diversification, so not too much exposure to any one particular sector.

The group’s management team also has a very long track record of success and knowing when to enter and exit certain markets. The latest call made was to sell off the entirety of the group’s German and Dutch holdings for €1.28bn at a time when occupancy and rental rates were high and the weak pound made the transaction even more attractive in sterling terms.

The proceeds of this sale were used to retire a significant amount of debt, fund a relatively small acquisition and return a lot of cash to shareholders. That return was facilitated though a shareholder-friendly tender offer that repurchased and retired a whopping 50% of the group’s outstanding shares for a total of £580m.

The group is now concentrating on the UK market, where it still sees a solid medium-term outlook for the industrial property market as GDP growth continues despite recent wobbles in the housing market. And on top of GDP growth, fact that the group’s portfolio properties are concentrated on large estates close to major highways means it should continue to benefit hugely from the shift towards e-commerce.

An aptly named option

Another company operating in the same vein is newly public Warehouse REIT (LSE: WHR). The group raised £150m in its September IPO and has already invested a bit more than this in building a portfolio that stretches from the south coast of England to Glasgow.

Like Hansteen, Warehouse REIT’s portfolio is concentrated on industrial properties that are either situated in close proximity to vital infrastructure links or in urban areas themselves. The latter are part of the group’s plan to be a key part of the ‘last mile’ delivery networks for e-commerce firms.

And with relatively high demand and limited supply for suitable properties, Warehouse REIT is expecting to achieve very high occupancy rates and steadily rising rental rates going forward. It’s still a bit early to tell if this is working out as planned, but the group’s acquisitions so far have taken place on estates with low vacancy rates and very nice annual yields.

Warehouse REIT isn’t a screaming bargain as it trades at a 7% premium to its net asset value, but if domestic economic growth continues apace and shoppers begin buying ever greater amounts of goods online, the company looks well positioned to benefit hugely.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Ian Pierce has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended ASOS. The Motley Fool UK has recommended Hansteen Holdings. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.