13th Sep 2013 07:43
LONDON (Alliance News) - Property investors Songbird Estates PLC Friday reported an increase in pretax profit for the first half, as the value of its portfolio increased 2.6% to GBP5.67 billion.
The company, whose subsidiary is property firm Canary Wharf Group, posted pretax profit of GBP263.8 million for the period ended 30 June, up from GBP102.2 million a year earlier, while revenue rose to GBP182.3 million from GBP177.7 million last year.
Rental income jumped to GBP134.6 million from GBP130.3 million in 2012, while net asset value per share increased 6.2% to GBP2.23 compared with GBP2.10 in December.
The company said its retail portfolio had once again performed strongly, increasing 6.7% in value reflecting a slight hardening of yields, progress with the expansion of the Jubilee Place mall and growth in passing rents.
The valuation of the office portfolio rose 1.6% in the period, and this resulted in an overall increase in the investment portfolio of 2.3%, Songbird said.
Chairman David Pritchard said some progress had been made on the contentious issue of the proposed Shell headquarters and 20 Fenchurch Street, nicknamed the "Walkie Talkie".
"We are working with specialist consultants to see what can be done to fix the issue [at the Walkie Talkie building] but we will not have to 'recloud' the building," Pritchard said in a newswires call, referring to covering the building with scaffolding in order to make changes to its exterior. The building has been reflecting strong sunlight onto neighbouring buildings and the surrounding streets, and Songbird recently had to compensate a motorist whose car was melted by the building's windows.
On the proposed Shell headquarters, which has been called in for review by government ministers after concern was raised about its visual impact, Pritchard said Songbird was currently engaging with its stakeholders, while major investors Qatari Diar "share our disappointment".
Songbird said 57% of 20 Fenchurch Street is let, including all the retail space in the sky garden at the top of the building which is let to Rhubarb. The building, which is a joint venture with commercial property firm Land Securities Securities Group PLC, is currently in negotiations on over 100,000 square feet and expects to let further space ahead of completion in April 2014.
The retail malls at Songbird's Canary Wharf properties continued to be fully let with demand from both new entrants and existing occupiers looking to expand.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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