27th Apr 2018 08:15
LONDON (Alliance News) - FTSE 250-listed UK Commercial Property Trust Ltd said on Friday it outperformed its benchmark index for 2017 as it gained support from its largest shareholder for the conversion to a real estate investment trust.
The trust said it delivered a net asset value total return of 12.2%, through an above benchmark portfolio total return of 12.2%, outperforming the Investment Property Databank benchmark return of 10.7%.
Net asset value per share at the end of 2017 rose to 92.8 pence from 86.8p on the same date the year before, and the share price was 88.6 pence, reflecting a discount to net asset value of 4.5%, widened from 2.0% in 2016.
Shares in UK Commercial Property Trust were down 0.1% at 89.70 pence on Friday.
The trust maintained a total dividend per share of 3.68 pence.
In addition, the trust said it received an irrevocable undertaking from its largest shareholder Phoenix Life Ltd, supporting its conversion to a real estate investment trust. UK Commercial Property expects to publish more details on July 1.
"UK Commercial Property Trust saw a continuation of the positive momentum generated in 2016. Our portfolio delivered above benchmark returns for the second year running which led to healthy NAV, share price and earnings returns. Looking forward, we expect our successful asset management initiatives will help improve dividend cover and unlock the income reversion in the portfolio and, as a result, the prospect for enhancing the income return to shareholders is positive," said Chairman Andrew Wilson.
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