27th May 2015 07:05
LONDON (Alliance News) - TR Property Investment Trust PLC Wednesday said it expects a fall in earnings in its current financial year as returns for the previous year were bolstered by unexpectedly good revenue results.
In a statement, the company reported a net asset value total return of 28.3% for the year ended March 31, while its benchmark index generated a total return of 23.3%. The benchmark is the FTSE EPRA/NAREIT Developed Europe Capped Net Total Return Index in Sterling.
The company had previously said that revenue was boosted in the first half, when Max Property - a company that delisted in August 2014 having listed in 2009 with the aim of acquiring distressed assets in high yielding regional industrial and Central London - unexpectedly paid a significant dividend.
"Once again we are highlighting that one-off events and changes have inflated the earnings in the current year. Underlying earnings are growing modestly but our development at the Colonnades is underway and this will result in a fall in income from our direct property assets for the remainder of the 2015/2016 financial year. In addition, the depreciation of the euro reduces our earnings in sterling," Chairman Caroline Burton said in a statement.
Nevertheless, the company expects to grow the dividend it pays to shareholders in the current financial year.
"The company has healthy revenue reserves, and providing the board can see sustainability in the longer term, we will not hesitate to utilise the reserves to supplement a fall in revenue in the short term," Burton said.
By Samuel Agini; [email protected]; @samuelagini
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