31 December 2019
By Maynard Paton
Results summary for Daejan (DJAN):
- The statement revealed fresh first-half records for revenue, up 12%, underlying operating profit, up 7%, and net asset value, up 4%.
- New rent laws in New York led to a £46m devaluation and put DJAN on course to register its first annual valuation loss since 2009.
- A 6% strengthening of the USD counterbalanced the New York devaluation and helped support net asset value.
- The accounts remain conservatively financed, with capital expenditure reduced significantly following earlier cautious remarks from management.
- The share price represents only 46% of net asset value — despite net asset value advancing 75% during the last five years. I continue to hold.