24th Mar 2016 11:04
LONDON (Alliance News) - Public Service Properties Investments Ltd on Thursday said it completed the sale of all its investment properties after the year end on December 31, and will be looking to use these funds to repay debt and return capital to shareholders.
The real estate investor said in its full year results its net asset value grew over 2015 to 54.4 pence per share, from 34.6 pence per share a year earlier, despite total equity at December 31 being almost a third of what it was at the end of 2014 at GBP12.3 million from GBP36.4 million. This was due to the number of ordinary shares in issue falling, as they were partially redeemed by the company.
Public Service Properties partially redeemed 67.4 million shares in April and a further 15.2 million shares in November.
In the year, the company completed the disposal of its investment in the UK healthcare sector, divesting its entire portfolio for GBP34.5 million, and sold off two care home properties in Germany for GBP16.7 million.
At the year end, Public Service Properties owned four care homes in Germany, but on February 2 announced it had sold one property for GBP2.2 million, and in March said it had executed conditional contracts to dispose of the remaining three care home properties for an aggregate sale price of GBP7.4 million.
It said these sales are expected to complete by the end of April 2016, with net proceeds from the sales used for general working capital purposes pending a proposed return of capital to shareholders.
Its net loss from continuing and discontinued operations for 2015 was GBP3.0 million, compared with a loss of GBP14.8 million in 2014, and said its pretax loss was GBP1.9 million from GBP2.1 million.
Public Service Properties did not recommend a dividend for the year.
"The company is pleased to announce the disposal of the last investment properties after a period of careful negotiation. The board will consider making further distributions to shareholders once the outstanding transactions have completed," said Chairman Patrick Hall.
Shares in Public Service Properties were down 2.0% at 49.50 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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