LONDON (Alliance News) - Ediston Property Investment Co PLC on Wednesday said its net asset value per share declined in its fourth quarter, though said "encouragingly a post-Brexit market has now been established".
The real estate investment trust said its net asset value per share declined to 107.07 pence over the three months ended September 30, down from 107.79p at the end of June.
Ediston Property noted in the immediate aftermath of the EU referendum result, the property sector experienced a period of volatility as the market reaction to the uncertainties of Brexit. The company said this was further exacerbated by the liquidity problems faced by the daily dealt open-ended real estate vehicles, many of which were forced to close to manage redemptions and sell assets to increase cash levels.
However, while Ediston noted property values were under downward pressure after the outcome of the vote, a post-Brexit market had been established with transactions providing sufficient evidence foe its valuer to remove its post-Brexit qualifications.
"It would also appear that over the quarter valuations have on average fallen less than was first feared. However, there has been a shift in investor behaviour to risk off. As a consequence some low risk assets have increased in value and those with short leases, credit risk and voids have seen some significant mark downs," the company said in a statement.
Ediston Property said further volatility will occur as the Brexit process proceeds will ensure attractive buying opportunities will continues to appear. Against this backdrop, the company said it plans to speak with investors in the coming weeks about its strategy for growth.
The company said it was paying a dividend of 1.375p per share for the three month period, down from the 1.76p per share paid a year earlier.
Shares in Ediston Property were up 1.5% at 103.00p on Wednesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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