14th Apr 2014 07:38
LONDON (Alliance News) - F&C Commercial Property Trust Ltd Monday reported an increase in profit in 2013, after the previous year's results were affected by revaluation losses.
FTSE 250-listed F&C posted pretax profit of GBP92.3 million, up from GBP30.4 million in 2012, after realising a GBP66.8 million gain on revaluation of its investment properties compared with a GBP11.4 million loss a year earlier.
Revenue, or rental income, however fell to GBP52.6 million, from GBP57.2 million in 2012. The company did not explain the drop, but said rental growth for its industrial business remained "negative". It also sold a number of properties during the year, including Charles House in London, part of its office portfolio, to the Crown Estate for GBP36 million.
The firm said although it only completed one development during the period - a student accommodation block in Winchester - asset management activity has continued to be an important area of focus.
Asset management initiatives at 6a Hams Hall Distribution Park, Birmingham, resulted in a total return of 37.8%, while it achieved a return of 58.4% at 16 Conduit Street, London.
F&C said its net asset value total return for the year was 13.0%, comparing favourably with a total return of 10.9% from the benchmark Investment Property Databank Quarterly Universe (IPD).
The retail sector IPD benchmark portfolio total return improved to 8.3% but F&C said still it is the weakest of its three main property sectors of office, industrial and retail.
"There are a few bright spots outside the capital but the sector has continued to struggle with the impact of trade diversion from traditional stores to other forms of retailing and constrained consumer budgets," the firm said of its retail arm.
"Secondary property has been particularly affected but retail rental growth was negative across every region outside London in 2013, underlining the problems facing the occupational market," it added.
The office market as a whole delivered an IPD portfolio benchmark total return of 14.8% buoyed by strength in the Central London market.
At the period-end the company's portfolio was valued at GBP927.9 million.
Twelve monthly interim dividends, each of 0.5 pence per share, were paid during the year maintaining the annual dividend of 6.0 pence per share and providing a dividend yield of 5.0% based on the year-end share price.
The stock was trading at 120.32 pence Monday morning, up 0.32 pence or 0.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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