12th Feb 2019 09:34
LONDON (Alliance News) - A&J Mucklow Group PLC on Tuesday reported a "good" performance in the six months to the end of December, with its net asset value rising, but warned its portfolio could be adversely affected by Brexit uncertainty.
At December 31, the real estate investment trust's NAV per share stood at 572 pence compared to 557p at June 30, a 2.7% increase.
The trust's total net asset value also increased 2.7%, to GBP361.8 million from GBP352.4 million.
A&J Mucklow declared an interim dividend payout of 10.48p, up 2.9% from the 10.18p paid out in the same period the year before.
The trust's vacancy rate in the period improved to 2.4% from 2.8% at the end of the previous half. A&J Mucklow's portfolio value increased 2.3% to GBP443.3 million from GBP433.5 million at June 30.
Chair Rupert Mucklow said: "The company is in very good health, with a virtually fully let property portfolio valued at GBP443.3 million and a low loan to value of 16%. Prospects for the second half of the year are encouraging, with further rental growth expected, and so far, it would appear that our existing industrial and logistics properties have not been adversely affected by the current uncertainty caused by the Brexit negotiations.
"We are, however, mindful of the fact that leaving the EU may cause some economic and political volatility, which could have an impact on our business, in terms of loss of tenants, changes in yields and ERVs. However, the group's portfolio of quality properties, geographically focused on the Midlands, with a diverse tenant base and high occupancy rate, coupled with low gearing and long-term fixed rate debt facilities, gives the directors confidence that our business model provides some protection against these risks."
A&J Mucklow said it looking to recruit a chief executive officer to combine the roles of chair and the departed managing director. Current Chair Mucklow said he will take on the role of managing director, along with his current duties, but will move to non-executive chair once a CEO is hired.
Shares in A&J Mucklow were down 0.2% Tuesday morning at 504.00 pence each.
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Mucklow (A & J)