UK commercial property Trust reports 1.9% net asset value return at half-year stage
UK Commercial Property Trust reported a total net asset value return of 1.9% for the latest six-month period, amid stable occupier demand post the referendum vote.
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UK Commercial Property Reit Limited
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The firm´s net asset value for the period ending on 30 June dipped fom 86.7p at year-end 2015 to 86.5.
Company chair Andrew Wilson emphasised the trust´s defensive qualities and ability to generate stable income in an uncertain environment.
"Set against this uncertain outlook, UKCPT’s strong defensive characteristics, with a diversified portfolio, by sector, geography and tenant base, position it well to provide a sustainable rental income stream to underpin the Company’s attractive dividend yield," he said in a statement.
London-based UK Commercial Property Trust also called attention to it what it described as its "low and prudent" gearing, at 10.7%, which also meant it had the financial wherewithal to invest in opportunities as they arose.
Its leverage was among the lowest in its peer group, with the company adding that it enjoyed an "attractive" blended fixed rate of interest of 2.89%.
A dividend yield of 4.8%, as of 11 August, was underpinned by its diversified portfolio of properties and a strong tenant base.
It also compared favourably with the 3.5% yield on offer from the FTSE REIT Index and the FTSE All-Share Index, management said.
Significantly, 14 leasing transactions with a combined rent roll of approximately £3.1m had completed or were progressing on pre-vote terms, and new enquiry levels had been broadly in line with normal seasonal expectations, the company said.
"The Company has a strong balance sheet with low gearing levels and significant cash resources, which it can utilise if opportunities arise. Overall, I am confident that for the reasons stated above, and due to the continued strong portfolio management work being undertaken on the Company’s behalf by Standard Life Investments, UKCPT is well positioned in this uncertain environment to deliver value for shareholders," Wilson said.