4th Sep 2018 13:01
LONDON (Alliance News) - Commercial property company A&J Mucklow Group PLC said on Tuesday that pretax profit more than doubled in its recently ended financial year due to a high revaluation gain on its portfolio.
Pretax profit for the year to the end of June was GBP69.5 million, up from GBP29.6 million the year before, mainly due to a revaluation gain of GBP49.7 million, up from a GBP13.0 million gain the prior year.
A&J Mucklow's portfolio was valued at GBP433.5 million at the end of June, up from GBP386.9 million the prior year; however its vacancy rate dropped to 2.8% from 4.2%. Rental income edged up to GBP24.1 million from GBP23.7 million.
EPRA net asset value rose as at June 30 rose to 559 pence per share from 471p on the same date the year before.
The group will pay a total dividend of 22.78 pence per share, up from 22.12p the prior year.
"It is difficult to predict what might happen over the next 12 months in the industrial occupier and investment markets, particularly with Brexit looming. Usually, at this late stage in the property cycle, with occupancy levels at record highs and industrial property yields at all time lows, we would be anticipating a correction in property values and be preparing ourselves to start acquiring attractively priced investment properties again," said Chairman Robert Mucklow.
"However, there are currently no signs of the industrial property market weakening, so we intend to continue to focus our activities towards development for the time being, to include a controlled speculative development programme and should circumstances change, we remain well positioned to capitalise on a weaker investment market," Mucklow added.
Shares in A&J Mucklow were up 2.4% at 547.90 pence on Tuesday.
Related Shares:
Mucklow (A & J)