29th Mar 2023 10:20
(Alliance News) - KCR Residential REIT PLC on Wednesday said its half-year loss widened despite revenue improving, as various costs all increased significantly.
Shares in KCR Residential were up 9.1% to 9.00 pence each in London on Wednesday morning.
The Surrey, England-based residential-focused real estate investment trust said pretax loss was GBP451,323 in the six months that ended December 31, widening from GBP254,265 a year earlier.
This was despite revenue climbing 30% to GBP788,740 from GBP604,583, as cost of sales multiplied to GBP121,658 from GBP18,881, while administrative expenses were up 17% to GBP702,371 from GBP599,322.
Costs associated with refurbishment also multiplied to GBP152,925 from GBP34,682, while it reported an unchanged fair value revaluation of investment properties in the half-year period, compared to a GBP145,000 gain a year earlier.
One silver lining within KCR Residential REIT's cost base was in finance costs, which fell by 25% to GBP268,383 from GBP355,866.
KCR Residential REIT drew attention to continued growth in the business "in an operating environment that has been challenging with continuing interest rate increases, cost of living pressure and supply chain disruption".
It said rising revenue was driven predominantly by its Coleherne Road asset in London and the ongoing conversion of Deanery Court to the Cristal Apartments branding and operating model in Southampton.
It particularly noted efforts to transition the business, as part of an unchanged strategy outlined in its 2021 earnings release to improve rental income, upgrade overall portfolio quality, explore development opportunities within the portfolio and to focus on reducing costs.
Looking ahead, KCR Residential said it continues to make progress to create a stable platform that can be successfully scaled up.
By Greg Rosenvinge, Alliance News reporter
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