27th Aug 2014 11:22
LONDON (Alliance News) - Industrial Multi Property Trust PLC Wednesday said it narrowed its losses in the first half, after its results in the previous year were affected by valuation losses.
The company, which looks to invest in UK commercial property, posted a net loss before tax of GBP147,000 for the six months ended June 30, compared with a GBP2.0 million loss a year earlier, as rental income from investment properties dipped slightly to GBP3.8 million from GBP3.9 million.
During the first half, Industrial Multi Property made a GBP570,000 valuation gain on investment properties. In the previous year, the company was hampered by a GBP3.0 million property revaluation loss.
Industrial Multi Property said its adjusted net asset value per share slipped to 223 pence at June 30 from 244 pence at December 31, 2013. The decline is attributable to the loss resulting from the increase in finance costs during the period although this was partially been offset by an increased property portfolio valuation, the company said.
Finance costs more than doubled to GBP3.0 million from GBP1.6 million a year earlier. The portfolio was valued at GBP78.1 million at the period-end, up from GBP77.5 million at the end of 2013.
Adjusted earnings per share amounted to a loss of 7.7 pence compared with a profit of 9.3 pence a year earlier, largely due to increased financed costs.
At an operating level, 46 new lettings and 12 lease renewals were signed in the period. An additional GBP400,000 worth of contracted rent has been added to the company's income stream.
Overall, occupancy across the portfolio stood at 86.2% at June 30, compared with 84.6% at December 31.
In December, the group entered into new financing agreements. This included a GBP33.5 million senior facility with a five-year term expiring in December 2018 with Royal Bank of Scotland Group PLC.
"With the new long term financing arrangements in place, the board believes that the group's strategy provides a strong platform from which to rebuild shareholder value over the medium to long term, however, as expected, the new financing arrangements have resulted in increased finance costs," Chairman Jonathan Clague said in a statement.
"The board is confident that the group will be able to service its debt, and with an improving secondary commercial property market, the group and therefore the shareholders may see an improvement in the net asset value in the medium to long term," he added.
Industrial Multi Property Trust shares were quoted down 9.0% at 55.50 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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