4th Jul 2018 10:05
LONDON (Alliance News) - McKay Securities PLC on Wednesday recommended a 14% increase in the final dividend for the year ended June 30 after reporting "an exceptionally productive period".
Ahead of annual general meeting, the real estate investment trust said it saw a record year of lettings, as it focused on office and industrial property within London and the South East.
The company said it progresses on building works at 30 Lombard Street, which it expects to complete next months. The property was pre-let in March to St James's Place PLC on a fifteen-year lease without break, at a rent price of GBP3.4 million annually.
Moreover, the company continues development of project located at junction 12 of the M4 motorway at Theale. McKay Securities plans to increase floor area by 39% at 134,150 square feet logistics warehouse. Marketing of the new building and its completion is expected in spring next year.
Elsewhere in the portfolio, the company said it continues refurbishment projects and floorspace improvements.
McKay reported 23% reversion available in its current portfolio, equivalent to income of GBP6.1 million per year. The company also highlighted that it sees plenty of opportunity to deliver further shareholder value over the short to medium term.
Portfolio occupancy, meanwhile, remained unchanged since the end of March, at 93%.
"The supply of modern business space across all our markets remains at historically low levels with a limited development pipeline," said Chief Executive Simon Perkins.
"Occupier demand for our assets has proved resilient despite Brexit, although we anticipate continuing caution until the terms of exit are clear," Perkins added.
Shares in McKay were trading 2.7% higher on Wednesday at 269.00 pence each.
Related Shares:
MCKS.L