17th Sep 2018 10:56
LONDON (Alliance News) - Real Estate Investors PLC on Monday lifted its dividend following growth in net asset value in the first half of 2018, but said it is preparing for potential market downturn due to political uncertainty in the UK.
The property group said it made a pretax profit of GBP5.3 million in the first six months of 2018, down from GBP6.4 reported for the same period a year earlier, as it booked a fair value gain from investment properties of GBP1.5 million, versus a gain of GBP2.9 million the year before.
Meanwhile, revenue rose to GBP7.5 million from GBP7.1 million year-on-year.
Gross property assets were worth GBP217.8 million on June 30, up 2.2% from GBP213.1 million at the end of 2017, and NAV per share rose 1.7% to 70.1 pence from 68.9p across the same period.
Shares in Real Estate Investors were down 0.3% on Monday at 54.85p each.
Contracted rental income slipped to GBP15.8 million from GBP16.2 million as at December 31. Its like-for-like portfolio valuation rose 1.1% to GBP210.2 million from GBP208.0 million across the same period. Occupancy fell slightly to 92% from a record 94% recorded at the end of 2017.
Real Estate Investors will pay an interim dividend of 1.75p, up 17% from 1.50p paid the year before.
"In line with our strategy, the year-to-date has been a period of preparation for any market downturn that we may experience over the coming 12 months, given the ongoing political uncertainty," said Chief Executive Paul Bassi.
"We are well placed to grow the portfolio further, achieve record contracted rental income over the next 12 months and grow our dividend payments," added Bassi.
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