18th May 2016 17:39
LONDON (Alliance News) - The Local Shopping REIT PLC said Wednesday that it saw a rise in pretax profit in its first half, and a rise in net asset value.
The company reported a pretax profit of GBP423,000 for the half year to end-March, up from GBP108,000 the year before, mostly due to lower administrative expenses and financing expenses, which offset lower gross rental income.
Net asset value rose 1.2% to GBP35.3 million, compared to GBP34.9 million at the end of September.
During the half year the company completed sales of eighteen freehold properties for an aggregate gross sale price of GBP4.1 million.
Its investment property portfolio was revalued at GBP76.7 million as at the end of March, which it said reflected an equivalent yield of 9.5%, compared to GBP81.2 million at the end of September.
"Whilst the uncertainty over the UK's future relationship with the European Union appears to have dampened property investment activity, we do not believe that it is likely to have a material effect on our occupier base," the company said in a statement.
"We expect our occupier businesses to perform robustly and our portfolio to continue to be income-generative. With the removal of the interest rate hedging agreements and extent of our cash reserves the Directors believe that the company's financial position is likely to be increasingly healthy," added Local Shopping REIT.
Local Shopping REIT has been in talks to sell the majority of its remaining property assets in the half year, but this has not led to a sale. However, its overall aim remains to execute its investment strategy, and will focus on its program of individual property sales.
Shares in Local Shopping REIT closed down 2.2% at 28.38 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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