LONDON (ShareCast) - Property group A&J Mucklow added ground Wednesday after reporting a big increase in adjusted pre-tax profit for the year as it refocused its business to convert to Real Estate Investment Trust (REIT) status.

Adjusted profit before tax for the year ended 30 June climbed to £19.7m from £12m in 2006 with net assets up to £259.3m from £215.7m last time. Pre-tax profit fell to £33.4m from £36.4m.

Adjusted net asset value per share, which includes the surplus in the value of trading properties, rose 3.2% to 445p from 431p last time.

“I am pleased to report another strong performance by the group and excellent progress made during the year towards refocusing our business, in readiness for conversion to a Real Estate Investment Trust (REIT) on 1 July 2007,” said chairman Rupert Mucklow.

He also saw signs that higher interest rates and a change in investor sentiment are slowing the property market and providing more modest returns.

But Mucklow said the group’s low gearing and new REIT status will provide it with opportunities to capitalise on any potential slowdown in the market.

"We are confident with our approach and feel extremely positive about the future."

The final dividend of 8.04p per share makes a total of 14.73p for the year, up from 13.71p a year earlier.

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