26th May 2015 11:55
LONDON (Alliance News) - London & Associated Properties PLC Tuesday said there is strong demand for shopping centre and retail property.
"There is strong investor demand for shopping centre and retail property following a recovery in occupational demand. Rental levels for shops found a floor during 2014 and, in many locations, are now showing growth," Chairman Michael Heller and Chief Executive John Heller said in a joint-statement.
"A tightening of yields has meant that investors have looked outside London with more enthusiasm and provincial locations are in greater demand than for some time. In this environment of low interest rates and attractive risk premia, the value of properties in our portfolio should remain firm," the chairman and CEO added.
The company reported a GBP2.7 million pretax loss in 2014, compared with a GBP1.1 million pretax profit for 2013.
"The result has, however, been impacted materially by the now terminated interest rate derivatives. Some GBP1.1 million has been charged in the current year as compared with a credit last year of GBP4.4 million. Had this been excluded the result this year would have been a small loss of GBP1.6 million (mainly attributable to short term loss of income in Sheffield and GBP1.1 million new interest derivatives charge) as compared with an adjusted loss in 2013 of GBP3.3 million," the chairman and CEO said.
The earnings had been delayed because of accounting rules required the company to consolidate its results with those of Bisichi Mining PLC, in which London & Associated Properties has a 41.25% stake, due to related parties also having shareholdings in Bisichi.
London & Associated Properties increased its dividend by 25% to 0.156 pence per share for 2014, citing "confidence in its trading and future outlook together with the restructured loan facility and cash balances".
Shares in London & Associated Properties were untraded on Tuesday. The stock last traded at 40.63 pence. It was suspended in mid-April until publication of the company's annual financial report.
By Samuel Agini; [email protected]; @samuelagini
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