19th Feb 2015 13:34
LONDON (Alliance News) - Local Shopping REIT PLC Thursday said annualised rental income from its property portfolio at the end of January was GBP7.8 million, net of head rent payments, compared to market rent for the portfolio of GBP8.4 million.
At the end of September 2014, the company's portfolio had comprised 387 properties, with 1,190 letting units, producing an annual rental income GBP7.9 million, also net of head rent payments.
The UK real estate investment trust, which invests in local shopping assets, said Thursday that the big picture for the overall local shopping economy continues to show "steady, but muted, improvement". It said that growth and confidence remains "patchy" and often highly subject to local factors.
"We anticipate that the coming twelve months will see a continuation of the slow but steady improvement in the economic environment for local and convenience retail. Against this backdrop we expect the portfolio to perform robustly under active management whilst we continue to bear down on costs," the company said in a statement.
The company said rent reviews were completed on 21 units over the last four months, increasing rental income by GBP49,033 per year, representing an average rental uplift of 11.37% and a premium of 13.08% above market rent. It also renewed a further 18 leases.
During the period it let 15 vacant units, totalling GBP106,470 in rent per year, and said it has a further 16 units under offer, at a combined rental of GBP152,320 per year.
The company also sold six properties for GBP1.5 million in the period, representing a premium of 3.24% to their valuation at the end of September 2014.
"We are carrying on with our programme of individual asset sales whilst pursuing opportunities for disposals of portfolios and property-holding subsidiaries," said Executive Director Steven Faber in a statement.
The company's shares were trading 2.8% lower Thursday, at 31.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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