9th Apr 2020 13:50
(Alliance News) - Regional REIT Ltd on Thursday said its profit was far lower in 2019 after far more substantial gains on disposal the year before and a swing to a loss on fair value change.
The real estate investment trust reported that pretax profit more than halved in 2019 to GBP26.3 million from GBP67.9 million in 2018 despite a 2.2% increase in rental and property income to GBP75.6 million from GBP74.0 million.
This profit reduction resulted from a very sharp drop to a GBP1.7 million gain on disposal of investment properties from a GBP23.1 million gain in 2018, as well as a loss on change in fair value of investment properties compared to a GBP23.9 million gain the year before.
EPRA net asset value per share declined 2.4% to 112.7 pence from 115.5p.
Total dividend per share, however, was increased by 2.5% to 8.25p from 8.05p.
Stephen Inglis, chief executive of Regional REIT asset manager London & Scottish Property Investment Management, said: "Our market fundamentals to date remain robust, however, we will inevitably be impacted by Covid-19 and though we are committed to paying a regular quarterly dividend to our shareholders this will be subject to market conditions, the company's performance, its financial position and business outlook.
"Our unique, vertically integrated, asset management platform continues to deliver considerable value for our shareholders and I believe our encouraging income collection rate for the current quarter is testament to this. Our platform, with so many property managers and asset managers on the ground supported by our accounts team and research enables a joined up, effective and understanding approach to supporting tenants and achieving the best outcome in this uncertain time."
Shares in Regional REIT were up 5.6% at 86.35p in London on Thursday afternoon.
By Anna Farley; [email protected]
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