23rd Apr 2021 09:40
(Alliance News) - UK Commercial Property REIT reported a decline in its net asset value in 2020 as the pandemic hit the retail and office space sector.
The real estate investment trust reported a net asset value of GBP1.13 billion, equivalent to 86.7 pence per share, as of December 31. That's down 3.4% from GBP1.17 billion, or 89.8p per share the previous year. The company swung to a net loss of GBP10.3 million from a profit of GBP1.6 milllion in 2019.
Shares were down 0.1% to 76.00p in London.
The company declared a 0.531p dividend, to comply with the rule requiring REITs to distribute 90% of their income. It's the fifth interim dividend of 2020, and brings the total for the year to 2.371p per share, down 36% from 2019.
UK Commercial Property said its portfolio puts it in a strong position as the economy recovers. It sold retail stores in 2020 and bought industrial and logistics assets, which are forecast to outperform in the current economic environment. Retail now makes up 17% of the portfolio, down from 21% the previous year, with no shopping centres and limited exposure to high-street stores.
The company said it is in a strong position as the vaccine rollout helps businesses reopen. It expects flexible working to benefit well-located prime offices that will act as collaboration hubs, while secondary offices will fall out of favour.
There is potential for a progressive dividend in the next 18 months as rent collection levels normalise, the company said.
"The portfolio that has been put in place over the last few years has enabled the company to weather the current difficult situation and emerge in a position of relative strength to create additional value in the future," UK Commercial Property Chair Ken McCullagh said.
By Ivan Edwards; [email protected]
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