20th May 2019 11:19
LONDON (Alliance News) - McKay Securities PLC on Monday reported a rise in annual net assets as the real estate investment trust saw its portfolio valuation reach "record highs".
McKay, a real estate investment trust focused on London and the south east of England, reported an EPRA NAV per share of 326.00 pence at March 31 compared to 322.00p a year before, a 1.2% increase.
The trust's net assets increased 1.5% in the period to GBP311.1 million from GBP306.4 million.
The trust's pretax profit in the twelve months to March decreased 70% to GBP13.2 million from GBP43.4 million, with McKay attributing lower valuation contributions.
McKay said its portfolio ended the year with a "historic high" valuation of GBP482.7 million, up 1.4% on the year before. The estimated rental value of the portfolio increased 2.1% in the period to GBP33.8 million per annum.
McKay's gross rental income in the period was GBP21.6 million, a 6.6% increase on a like-for-like basis. On a continuing basis, gross rental income slipped marginally, from GBP21.8 million, adjusting for prior year disposals and planned development activity.
McKay ended the year with a loan to value ratio of 33.3%, ahead of the 31.6% a year prior. The increase was attributed to GBP13.8 million of capital expenditure being invested on portfolio development and refurbishment projects.
The trust paid a final dividend of 7.4p, up 2.8% on the year before. The increased final dividend will result in McKay offering a 10.2p total dividend, up 2.0% on the year before.
"I'm pleased to be able to report another successful year of delivery for McKay which concludes five years of exceptional growth since our 2014 capital raise. The past year saw further delivery against our long-term strategic objectives as it captured more of the portfolio's reversion for the benefit of shareholders, despite navigating a turbulent market environment. McKay's concerted focus on the office, industrial and logistics markets of London and the South East continues to deliver robust performance, whilst the substantial income potential still to be released, and our proven ability to unlock this, leaves us well placed to deliver future value," said Chair Richard Grainger.
Chief Executive Simon Perkins added: "The growth delivered across all key metrics is a direct result of the carefully selected and actively managed portfolio that we have built up over recent years, combined with our ability to enhance and release its potential, which has resulted in rental and capital uplifts out-performing the market over the period.
"We remain wary of the political uncertainty affecting our operating environment, however the strong fundamentals underpinning our markets and significant reversion that remains to be unlocked within our portfolio leaves us well positioned to deliver future growth."
Shares in McKay Securities were flat at 248.00 pence each Monday.
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MCKS.L