(Correcting figures for the prior year after Ediston's annual results for financial 2019 were incorrectly reported as interim figures.)
(Alliance News) - Ediston Property Investment Co PLC on Thursday reduced its payout to shareholders after posting a much wider interim loss following a substantial loss on revaluation.
The real estate investment trust reported a GBP20.3 million loss for the six months ended March 31, having made a GBP463,000 loss in the same period a year before.
This resulted from unrealised loss on revaluation of investment properties widening to GBP27.3 million from GBP7.6 million. Revenue slipped to GBP10.3 million from GBP10.5 million.
EPRA net asset value per share fell 12% to 96.23 pence as at March 31 from 108.72p on September 30 as the value of its investment portfolio dropped 8.0% to GP293.8 million at March end from GBP319.2 million in September.
Chair William Hill said: "This 8.0% reduction in value is almost entirely due to mark downs in the value of the retail warehouse holdings which have not escaped the ongoing difficulties in the wider retail market."
Ediston has paid a 5.75 pence per share annual dividend since January 2018 through monthly payments, but Covid-19 has prompted a reevaluation of its dividend policy. As a result, Ediston has opted to reduce its dividend payment for April to the equivalent annual dividend rate of 4.0p per share, which will be maintained for at least the next three months.
Hill said: "The real estate market will have to grapple with some extremely testing issues over at least the next two quarters and possibly beyond, including more difficulty in collecting rent, potential tenant failures and a transactional market that will struggle with price discovery to provide meaningful valuation data points. Where it goes from here will depend considerably on whether we have a V, U or L shaped recovery for the economy and the duration of the restrictions on movement and activity and what those restrictions entail.
"Whilst the timing of the recovery from the impact of Covid-19 is unknown, the board is confident that the convenience-led retail warehouse assets the company owns, together with its other assets, should provide attractive returns to shareholders in the future. The creative and proactive asset management of the Ediston team puts the company in a strong position to deal with the challenges ahead and to identify the opportunities for value creation within the portfolio to unlock in the future. However, the immediate priorities for the company are income collection and value protection."
Shares in Ediston were up 1.4% at 44.50p in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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