27th Mar 2020 15:08
(Alliance News) - KCR Residential REIT PLC on Friday reported a widened loss in the first half of financial 2020, and warned of a hit to demand due to uncertainty.
The stock was untraded on Friday afternoon in London, last quoted at 43.50 pence each.
For the six months to the end of December, the real estate investment trust posted a pretax loss of GBP2.5 million, widened from a loss of GBP1.9 million in the year prior. Revenue was up 59% to GBP427,057 from GBP269,113.
During the period, KCR incurred costs of GBP300,835 in relation Torchlight Fund's investment into the company in July.
Looking ahead, the company said it expects the Covid-19 outbreak to hurt demand, supply chains, stock markets and consumer and business confidence. It added that it expects demand in the medium to high-value residential property price range to be further hurt by recent changes to stamp duty which imposes a 2% surcharge on foreign buyers.
However, it said it remains "positive" on investing in new opportunities to grow its portfolio. It added that it will focus on improving rental income on existing properties, and is implementing a strategy to reduce corporate overheads.
As at the end of December, the company's had cash of GBP24,218 and a portfolio valued at GBP23.4 million.
By Ife Taiwo; [email protected]
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