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(Alliance News) - Cardiff Property PLC on Wednesday reported a 48% jump in annual profit, but warned that uncertain political and economic environment is stalling activity in the commercial property market.
"The uncertain environment fuelled by political and economic turbulence has stalled activity in the Thames Valley commercial property market," Chair Richard Wollenberg said.
Wollenberg also warned that developers and investors are being "reluctant to commit towards new commercial property schemes" due to the uncertain environment.
For the year to September 30, the property investor recorded a pretax profit of GBP1.7 million, up from GBP1.1 million in the comparative period, benefiting from rise in value of property portfolio and increased contribution from 47%-owned joint venture Campmoss Property Company Ltd.
Revenue for financial 2019, however, dipped to GBP647,000 from GBP650,000.
Wollenberg said: "During the year office lettings remained at a low level and as a consequence rental levels have marginally declined. Office and retail rents have marginally declined, whilst business units incorporating a high proportion of industrial space have proved far more resilient with minor increases in rent being achieved."
Cardiff Property's total property portfolio, including the Campmoss investment and development portfolio, was valued at GBP30.0 million at September 30, up from GBP26.8 million a year ago.
The Egham, Surrey-based company has declared a final dividend of 12.5 pence per share, up from 12.2p, making a total dividend for the year of 17.1p, up 3% from 16.6p.
"The group's assets are located in prime Thames Valley locations which should benefit from a return of confidence in the market. The next few months will hopefully allow current political and economic uncertainties to be unravelled and encourage industry and the property market to move positively forward," Cardiff Property said.
Cardiff Property shares in London were untraded at 1,725.00p each on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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