19th Nov 2013 13:10
LONDON (Alliance News) - Real estate investment trust McKay Securities PLC Tuesday said it swung to profit in the first-half, as last years' results were affected by negative movement in the market value of the group's interest rate hedging instruments.
The commercial property investors posted pretax profit of GBP22.8 million compared with a GBP2.7 million loss a year earlier. Mckay said it benefited from unrealised gains during the period of GBP8.5 million in the value of the group's property portfolio and GBP13.1 million in the value of the group's interest rate hedging instruments.
The company which focuses on the south of England and central London said its like-for-like European Public Real Estate Association (EPRA) net asset value per share rose 5.0% to 250 pence from 238 pence at the end of march.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
McKay said its portfolio was valued at GBP225.9 million while the portfolio's rental value increased to GBP16.9 million from GBP16.8 million in March.
The disposal of a former convent at Pinehurst Park, Farnborough for GBP1.2 million was the only sale during the period, which was in excess of the estimate of GBP0.9 million made at the time of purchase in July last year.
At the end of the period, the portfolio occupancy rate was 89.1%. This was marginally lower than the 91.4% reported in March, mainly due to the vacation of one of the remaining tenants ahead of the refurbishment of office building Doncastle House in Bracknell.
The interim dividend was unchanged at 2.7 pence per share.
The stock was trading at 195.00 pence Tuesday morning, down 5.00 pence or 2.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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