2nd Aug 2023 10:04
(Alliance News) - Balanced Commercial Property Trust Ltd on Wednesday said its net asset value decreased in the latest quarter, but that its portfolio remained strong with "good" occupational activity.
The London based commercial property investment trust said its NAV at June 30 was 117.1 pence per share, down 1.3% from 118.7p at March 31. Its NAV total return for the quarter was negative 0.3%, compared with negative 14% for the quarter ended December 31.
Balanced Commercial Property shares were down 0.4% at 69.31p in London on Wednesday morning.
The trust also said it continued to pay monthly dividends of 0.4p per share during the quarter.
Its portfolio valuation recorded a capital fall of 1.1%, mainly due to office holdings decreasing by 5.9% to GBP322.1 million in the period. Additionally, investment volumes remained "significantly constrained" and investor sentiment was impacted by interest rate and inflation pressures.
"The picture is nuanced at the sub-sector level, with investors favouring high quality assets and those sectors with the strongest outlook for resilience," the trust commented. "Consequently, the industrial sector, which retains robust occupier demand and strong rental growth prospects, and the retail warehousing sector, which generates an attractive and sustainable income return, saw yields compressing over the quarter."
Balanced Commercial however said its portfolio "continues to demonstrate good levels of occupational activity," causing portfolio income to increase by 1.9% during the period.
As of June 30, the total property portfolio had a market value of GBP1.09 billion with an equivalent yield of 6.2%.
By Emma Curzon, Alliance News reporter
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