20th Aug 2014 07:51
LONDON (Alliance News) - UK Commercial Property Trust Ltd Wednesday reported an increase in profit and net asset value in the first half of 2014, after last year's results were dented by valuation losses.
The Guernsey-based company posted net profit GBP85.4 million for the six months ended June 30, up from GBP18.0 million million a year earlier. The company was boosted by revaluation gains of GBP61.0 million, after recording an equivalent GBP5.4 million loss a year earlier.
Rental income, however, dipped slightly to GBP35.6 million from GBP35.8 million, reflecting changes in vacancy levels.
FTSE 250-listed UK Commercial Property Trust said its net asset value per share rose 6.8% from the year-end to 78.1 pence from 73.1 pence, mainly due to a 6.0% like-for-like increase in the capital value of the property portfolio, which is now worth GBP1.1 billion.
The company said its net asset value total return of 10.1% in the period was ahead of the IPD benchmark of 8.3% and the FTSE ALL-Share Index of 1.6%. Investment Property Databank Ltd, a division of MSCI Inc, provides real-estate price indices.
At an operating level, the company said it has made good progress at Aberdeen Gateway its pre-let industrial development in Aberdeen, with two properties due to be complete by the end of August. A third unit is due to be completed in December, generating, after rent-free periods, an additional annual income of GBP2.9 million.
In addition, GBP355,0000 a year in new lettings were secured at The Rotunda leisure scheme in Kingston and Kensington High Street, London.
Post the period-end, the company purchased Regent Circus, in Swindon, for GBP41 million increasing its exposure to its favoured leisure sector. The retail and leisure site, in the heart of Swindon, west of London, is currently 94% pre-let. The company did not name the vendor.
A Morrisons supermarket will open in November at the site, with the leisure element expected to open in early 2015. On completion, the scheme will generate GBP2.1million a year in rental income, after rent-free periods, from leases with an average length of 20 years.
"The UK is currently experiencing a sustained recovery coupled with improving business confidence that is now resulting in the expansion of most sectors of the economy and has resulted in considerable yield compression over the last 12 months," Chairman Christopher Hill said in a statement.
"We believe this trend will continue throughout 2014 and increasingly extend beyond London, playing to the strong weighting of the company's portfolio to the UK regions," he added.
During the period the company, which has stated its intention to move towards a more "sustainable" dividend policy, paid a total dividend of 2.2325 pence during the period.
UK Commercial Property Trust Ltd shares were quoted down 0.5% at 82.70 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
MRW.LUKCM.L