24th May 2016 07:39
LONDON (Alliance News) - McKay Securities PLC on Tuesday said the upcoming UK referendum on European Union membership has created "additional uncertainty for both investors and occupiers within our London and South East markets", following a year in which it saw "significant growth" in profit.
The real estate investment trust said its net rental income from investment properties grew to GBP17.7 million in the year ended March 31, up from GBP14.9 million a year earlier.
McKay Securities said its portfolio value grew by GBP48.4 million over the year to GBP401.2 million and gross rental income was up 14% to GBP20.2 million. The group said five disposals were made in the year, realising net proceeds of GBP33.3 million, incorporating a GBP9.1 million surplus over valuation.
Along with this, fewer finance costs were incurred and McKay Securities posted pretax profit of GBP53.2 million, higher than the GBP33.3 million it recorded a year earlier.
The group said it was offering a final dividend of 6.1 pence per share, up from 6.0p per share a year earlier, which meant its total dividend for the year was 8.80p per share, up from 8.70p per share a year earlier.
Our major investment in property acquisitions, refurbishments and development projects over the last few years increased our scale to coincide with a time of growth in rental and capital values across our markets," said Chairman David Thomas.
"By positioning our investment assets to take best advantage of these positive market trends, we have generated significant growth in value and earnings this year from an improved and more resilient portfolio. In addition, progress with the development programme has enhanced the prospects of the release of further gains over the years ahead," the chairman added.
"Global and UK economic prospects are less encouraging since the beginning of 2016, and the forthcoming EU referendum has created additional uncertainty for both investors and occupiers within our London and South East markets. We anticipate that this uncertainty will be prolonged in the event of a vote to leave the EU," Thomas said.
Shares in McKay Securities were untraded on Tuesday, having last traded at 232.00p.
By Hannah Boland; [email protected]; @Hannaheboland
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