16th Sep 2013 13:12
LONDON (Alliance News) - Real Estate Investors PLC Monday said its half-year pretax profits increased after it substantially improved its performance on interest rate swaps, while its net asset value per share increased between December 31 and June 30.
Real Estate Investors said it made a GBP769,000 pretax profit for the six months to June 30, compared with a GBP556,000 pretax profit for the corresponding period the year prior, while its NAV per share increased to 55.4 pence on June 30, compared with 54.6 pence on December 31.
A significant factor in the increase was a profit on the valuation of the company's interest rate swaps, which came in at GBP1.2 million, compared with last half-year's loss of GBP74,000. The figure was significant as gross profit saw a small decline, profit on ordinary activities before taxation more than halved and finance costs increased.
The company said it did not acquire any property in the first-half because it was outbid on numerous occasions and available capital was limited, although its planning application at Southgate Retail Park was successful and the company expects to make a sale at a "significantly higher valuation than our existing book value".
Real Estate Investors said it is in early discussions with Lloyds Banking Group PLC to extend its existing GBP20 million financing deal, set to expire in October 2014, into a new five year facility on similar or improved terms.
Real Estate Investors shares were Monday quoted at 44 pence, up 0.5 pence, or 1.2%.
By Samuel Agini; [email protected]; @samuelagini
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