10th May 2023 10:29
(Alliance News) - UK Commercial Property REIT Ltd on Wednesday said there had been a "period of stabilisation" for the company in the first quarter of 2023, allowing it to report a small rise in its net asset value per share.
The UK-focused real estate investment trust reported a NAV per share of 80.60 pence at March 31, up from 79.70p at December 31.
The company's total NAV return for the three months ended March 31 was 2.2%. This compares to a return of negative 20.8% in the final quarter of 2022.
Its EPRA earnings per share increased slightly to 0.81p at March 31, slightly down from 0.82p at December 31.
UK Commercial Property REIT noted a 0.9% increase in like-for-like portfolio capital value, net of capital expenditure, to USD1.32 billion. This compared "favourably" to the MSCI UK Monthly Property Index where capital values fell by 1.2% over the quarter, it said.
Chair Ken McCullagh said: "After a rerating of the UK commercial real estate sector in the final quarter of last year, as a result of a dramatic increase in interest rates as governments tried to stem inflation, there has been a period of stabilisation in the first quarter of 2023. During the period, the company has continued its asset management initiatives to drive earnings. These factors have led to a marginal increase in the value of UK Commercial Property REIT's high-quality, diversified portfolio, which is also reflected in the small increase to NAV."
UK Commercial Property REIT maintained its dividend at 0.85p per share.
Shares in the company were 0.6% higher at 52.40 pence each on Wednesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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