18th Aug 2016 06:56
LONDON (Alliance News) - Property investor UK Commercial Property Trust Ltd said Thursday the six months to June saw stable rental demand, despite political and economic uncertainty surrounding UK's vote to leave the European Union.
Net asset value per share was marginally down, at 86.5 pence from 86.7p in December. This resulted in a NAV total return of 1.9% in the first half of 2016.
Total income nearly halved to GBP38.4 million from GBP64.4 million year-on-year, while pretax profit was down 39% to GBP27.3 million from GBP44.6 million from the year previously.
The company said its portfolio total return was 2.8%, mainly driven by the industrial and office sectors. The strategic sales of UK properties in 6 Arlington Street, London, and Dolphin House, Sunbury, for a combined price of GBP45.6 million, generated a premium of 14% above their March valuation.
UK Commercial Property Trust Chairman Andrew Wilson said the company delivered a "creditable" performance given the political and economic uncertainty around Brexit, and should be well positioned to provide a sustainable rental income stream.
"UK commercial real estate continues to provide a significant yield premium to other assets and, with lower gearing levels, higher occupancy rates and muted levels of new supply, the asset class should remain resilient. Furthermore, and whilst it is too early to point to any definitive trends post referendum, we have seen occupier demand in our own portfolio remain stable in most sectors," said Wilson.
By Lucy Heming; [email protected]
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