28th Nov 2018 09:46
LONDON (Alliance News) - Daejan Holdings PLC said Wednesday its profit grew in the first half of its financial year with a modest contribution from its UK portfolio.
For the six months ended September 30, the property firm posted a GBP61.1 million pretax profit, rising 7.9% from GBP56.6 million the year before.
Daejan's net gain on the valuation of its investment properties was GBP32.5 million, up from GBP29.5 million with modest UK growth to GBP32.5 million from GBP24.1 million.
Daejan's US portfolio saw no valuation increase in the period as a consequence of rising local interest rates.
Rental and related income grew to GBP74.0 million from GBP71.3 million.
Of this, UK rental and related income contributed GBP47.8 million, up from GBP45.6 million, while US rental and related income grew more modestly to GBP26.1 million from GBP25.7 million.
An interim 35 pence per share dividend it to be paid March 8, flat year-on-year. No dividends were paid during the period.
"We continue to see some increase in rental income in the UK and USA, primarily driven by the letting of completed development projects.
"Brexit continues to provide political and economic uncertainty which has led to reduced forecasts for economic growth. This combination of factors will provide a challenging environment for our UK business. In the US the economic outlook is more encouraging and should provide a positive environment to grow our business," said Chairman Benzion Freshwater.
Shares in Daejan were up 1.5% at 5,960.00 pence on Wednesday.
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