There’s a whole range of FTSE 100 stocks on offer right now. These stock market crash bargains look cheap after recent declines. As a result, they could be good long-term investments at current levels.
FTSE 100 bargain
One FTSE 100 bargain that stands out after the crash is Landsec (LSE: LAND). The UK’s largest listed landlord owns a portfolio of commercial property throughout the country. This portfolio was worth around £13bn as of its last valuation date.
But shares in the real estate investment trust (REIT) have taken a pummelling over the past two weeks. It’s easy to see why. The FTSE 100 landlord collected just 65% of rent due in March. That’s compared to 96% for the equivalent period last year.
With income plunging, management has decided to cancel dividends for the foreseeable future. On top of this, as the UK property market is currently frozen, Landsec has warned it’s not possible to place a value on its portfolio right now.
However, despite all of the above, it’s important to remember property is a long-term asset. While Landsec’s income is under pressure right now, this situation is unlikely to persist for the next three or four years.
Landsec can afford to sit and wait for the market to turn around. At the end of September 2019, the group’s loan-to-value ratio was just 28%. At the end of March, the property champion had total financial liquidity of £1.2bn, excluding any near-term debt repayments.
All of the above suggests Landsec can survive the current crisis. What’s more, the stock is currently trading at a price-to-tangible book (P/TB) value of just 0.5, which suggests it offers a wide margin of safety at current levels.
As such, now could be an excellent time to snap up shares in this top-tier bargain.
As well as Landsec, British Land (LSE: BLND) also stands out as a FTSE 100 bargain in the current market.
British Land is facing the same pressures as it’s a larger top-tier peer. The REIT has also had to suspend its dividend for the foreseeable future.
Also, according to the company’s most recent trading update, just 12% of its retail stores are still open. Around 41% of the firm’s portfolio is retail properties with the remainder comprised of London offices and residential properties.
Nevertheless, despite these pressures on the company’s cash flows, British Land has plenty of cash available to keep the lights on. A loan to value ratio of 31%, as well as £1.2bn of liquidity, should help the business weather the storm.
Like its FTSE 100 peer, British Land also looks cheap after recent declines. The stock is trading at a P/TB ratio of 0.5, at the time of writing. This implies the company could worth 100% more than its current market value if it’s broken up and sold.
With that being the case, it looks as if long-term investors should consider taking a look at this property champion.
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Rupert Hargreaves owns British Land Co and Landsec. The Motley Fool UK has recommended British Land Co and Landsec. 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.