24th Mar 2014 12:48
LONDON (Alliance News) - Public Service Properties Investments Ltd Monday said it narrowed its losses after last year's results were hit by revaluation losses on investment property.
The European real estate investment and financing company posted a pretax loss of GBP10.8 million for 2013, compared with a loss of GBP49.2 million, even though revenue fell to GBP6.9 million from GBP11.9 million a year earlier.
In 2012, the company made a USD39.4 million loss on the fair-value adjustment of investment properties compared with just a GBP12.8 million loss in 2013.
Public Service Properties said its net asset value per share fell to 49.2 pence from 54.9 pence, while its adjusted net asset value per share, which excludes deferred taxation liabilities, dipped to 51.2 pence from 58.9 pence.
The company said its UK portfolio was valued at GBP37.7 million compared with GBP47.3 million in 2012, while its German portfolio decreased 8.3% in constant currency to GBP34.4 million from GBP37.5 million a year earlier.
Public Service Properties blamed the decline in the UK on an increase in the average capitalisation rate to 10.6% at December 31, 2013 from 8.3% at December 31, 2012. Individual capitalisation rates varied between 7.0% and 22.5%, it said.
Capitalisation rate is the ratio between the net operating income produced by an asset and its capital cost - the original price paid to buy the asset - or alternatively its current market value.
The firm said total debt of GBP31.7 million was secured on its assets at the period-end compared with GBP32.9 million a year earlier.
Looking ahead, the company said it plans to reduce recurring management fees, while non-recurring professional fees are expected to be lower in 2014 than in 2013.
The stock was trading at 27.00 pence Monday afternoon, down 1.00 pence or 3.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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