16th Jul 2015 08:03
LONDON (Alliance News) - McKay Securities PLC on Thursday said it is confident on increasing its rental income in the current financial year on the back of new lettings and a rise in occupancy in the first quarter.
The real estate investment trust, which focuses on the south east and London office and industrial markets, said it is well placed to benefit from the positive current market conditions and said its development programme and other portfolio opportunities could mean its annualized rental income rises to GBP30 million by the end of March 31 from GBP20.5 million a year earlier.
McKay said construction work on its speculative office schemes in Reading and Redhill is due to be completed next year, while it has also made progress on the 30 Lombard Street development in the City of London.
The company completed 15 open market lettings in the first quarter of its current financial year, with a combined contracted rent of GBP0.9 million a year, 7.8% ahead of the estimated rental value of the properties.
As a result of the lettings, McKay's total occupancy level rose to 93.5% from 91.8% at the start of the financial year.
Shares in McKay were untraded Thursday, having last traded at 250.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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