LONDON (Alliance News) - FTSE 250-listed property company Daejan Holdings PLC said Wednesday its pretax profit for the first half declined sharply due to much lower valuations gains on its portfolio, while its rental income was broadly flat.
Daejan said pretax profit for the half to the end of September was GBP58.8 million, compared to a GBP135.5 million profit it made a year earlier. The decline was caused by the group's property revaluation gain only coming in at GBP35.5 million in the half, compared to a GBP107.9 million gain made a year earlier.
The company said the slowdown in the valuation gain demonstrated the moderation of growth in property values in the UK and US and the absence of the one-off benefit it got a year earlier from the letting of its Africa House property and from its Strand Palace rent review.
Total rental and related income for the half came in broadly flat at GBP66.2 million, against GBP66.5 million a year earlier.
The group will pay an interim dividend of 35.00 pence per share, flat year-on-year.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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