17th Dec 2015 13:24
LONDON (Alliance News) - The Local Shopping REIT PLC on Thursday said it has sold GBP90.2 million of property at a small premium to book value since shareholders approved the sale of the group's property assets with a view to paying down debt and returning surplus cash.
Managed by INTERNOS Global Investors Ltd, the real estate investment trust has been pursuing its current investment policy since it was adopted by shareholders in July 2013.
Local Shopping REIT said the result is a "relatively" financially stable group, which has seen a significant drop in debt gearing.
Lower gearing enabled the group to restructure remaining debt to "good advantage".
"In addition the group has a sensible cash balance and (if still relevant) will have reasonable cash flow at the expiry of the remaining interest rate swaps in 2016. However, the board remains very mindful of the need to expedite the sale of the remaining property assets whilst preserving as much shareholder value as is reasonably possible," Chairman Stephen East said.
"To that end, although there can be no guarantees, it would not be unreasonable to anticipate further portfolio sales in addition to our ongoing programme of individual property disposals, and shareholders will be updated at the appropriate moment," East said.
The update came as the group reported a GBP20,000 profit before and after tax in the year ended September 30, versus GBP1.2 million the previous year. Operating profit before financing costs fell to GBP2.4 million from GBP6.5 million.
The company's portfolio was valued at GBP81.2 million on September 30.
Shares in the real estate investment trust were up 1.5% at 27.40 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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