17th Jun 2014 12:04
LONDON (Alliance News) - Wynnstay Properties PLC Tuesday said its pretax profit rose in its last financial year, after the prior year was hit by losses on the revaluation of its portfolio, and it predicted a return to rental growth if the UK economy keeps improving.
The property investment company posted pretax profit of GBP1.2 million for the year ended March 25, up from GBP166,000 a year earlier, while property income remained broadly flat at 1.6 million. In the previous year, the company's results were affected by a GBP937,000 revaluation loss.
AIM-listed Wynnstay Properties said it currently has 53 tenants occupying over 70 separate properties on 66 leases in 18 locations. During the year, the company renewed or extended the existing leases of eight tenants and welcomed three new ones.
At the period-end, the portfolio was valued at GBP18.5 million, up from GBP18.3 million a year earlier. Its net asset value per share also rose to 461 pence from 438 pence.
"The economic outlook, and particularly the prospects for small and medium-sized businesses, inevitably affects the value of the commercial property in which we invest and the terms that can be agreed with tenants. If this improvement in optimism and outlook is sustained it should lead to a return to rental growth which will in turn result in a further increase in the value of your company's portfolio," it said in a statement.
So far in the current year, Wynnstay agreed to complete the purchase of a freehold trader counter investment near Ipswich for GBP1.0 million. The fives units comprising 18,300 square feet are fully let to three tenants, one being part of a national chain and the two other being regional businesses. The total passing rent is GBP86,500.
On the back of last year's performance it said it would maintain its final dividend at 7.6 pence per share, making a total dividend of 11.8 pence per share, up from 10.8 pence per share a year earlier.
Wynnstay Properties shares were quoted up 12.7% at 357.80 pence Thursday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Wynnstay Props.