LONDON (Alliance News) - Property investors Development Securities PLC Wednesday reported an increase in profit for the full year, after last year's results were affected by revaluation losses.
The company posted pretax profit of GBP19.5 million for the period ended February 28, up from GBP792,000, as its portfolio returned to gains. The company made a GBP3.1 million valuation gain on the revaluation of property portfolio compared with a GBP16.4 million loss a year earlier.
On the back of this, the company increased its final dividend to 3.2 pence from 2.4 pence, making a total dividend of 5.6 pence per share, up from 4.8 pence per share.
Development Securities said it net assets per share at the period end stood at 262 pence per share up from 251 pence per share.
During the period the company said it made significant progress across all aspects of its portfolio including joint venture projects. It made disposals of real estate worth GBP260 million, including the Phones 4u Arena in Manchester, held in joint venture with Patron Capital, for GBP82.1 million, while acquiring 12 sites for GBP69.8 million - the majority of which are in London and the South East.
The firm said with the UK economy continuing to strengthen and some enhanced liquidity returning to real estate markets outside London. It has accelerated its programme of asset disposals within its investment portfolio.
Chief Executive Michael Marx said this "will allow us to recycle capital into further investment opportunities that offer enhanced growth prospects."
"We are well positioned to capitalise on further opportunities in those sectors of the market that we have selected for value creation, and to deliver enhanced shareholder returns," he added.
The stock was trading at 238.00 pence Wednesday morning, up 6.00 pence or 2.6%.
By Anthony Tshibangu; firstname.lastname@example.org; @AnthonyAllNews
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