20th Sep 2013 10:19
LONDON (Alliance News) - Real-estate investment company Public Service Properties Investment Limited Friday said it swung to profit in the first half, as its reduced its revaluation losses.
The company, which focuses on care homes in the UK and Germany, reported pretax profit of GBP1.7 million for the period ended 30 June, after a GBP35.2 million loss a year before, despite a fall in revenue to GBP3.4 million, from GBP7.7 million in 2012. The company said last years' revenues included rental income from UK assets sold in July 2012 and two German investment properties sold in December 2012.
Revaluation losses on investment properties were GBP0.7 million in the recent half, compared to GBP38.6 million a year ago.
Net Asset Value per share increased to 58.1 pence per share during the period, from 54.9 pence per share at the end of December.
Following completion of disposals reported in the last twelve months, the group owns portfolios of properties in the UK and Germany which will generate gross rental income of GBP7.1 million and finance lease income of GBP0.9 million for the current financial year, the firm said.
The company's total property is now valued at GBP85.0 million.
Looking forward, the company said the UK healthcare market remains challenging with a number of external pressures affecting operators of care homes, including low levels of fee increase negotiations with local authorities and declining occupancy rates.
In contrast, trading conditions in Germany are comparatively stable.
"The board and its advisers continue to evaluate all assets that remain in the Group following recent disposals and last year's restructuring of a major portion of the UK portfolio," Chairman Patrick Hall said in statement.
"The consolidated leverage has been materially reduced as a result of transactions completed over the last twelve months, and debt refinancings in both Germany and the UK have improved the debt maturity profile and lowered the rate of amortisation," he added.
Public Service Properties Investment shares were trading at 27.00 pence Friday, down 1.00 pence or 3.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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