LONDON (Alliance News) - Ediston Property Investment Co PLC said Wednesday its net asset value slipped in the first half due to the "negative sentiment" towards the retail sector.
At March 31, Ediston Property's EPRA NAV per share stood at 112.21 pence compared to 115.30p at September 30, a 2.7% decrease.
The real estate investment trust's net assets decreased by a similar margin in the first half, slipping to GBP237.1 million from GBP243.7 million.
Ediston Property's NAV total return in the period was negative 0.2%. The trust said it does not have a benchmark index but noted the retail warehouse subsector of the MSCI UK Quarterly Property Index lost 6.9% in the same period.
"The first half of this financial year has seen the completion of a number of important asset management initiatives. These made a positive contribution to the income line and helped maintain the EPRA vacancy rate at a modest 3.1%. They also provided support for the company's net asset value during a period when investment values have been under pressure from the significant negative shift in sentiment towards the retail sector. Dividends were comfortably covered at 117.5%," said Chair William Hill.
The trust declared a dividend of 2.88p in the first half, 2.5% higher than the 2.81p distributed the year prior.
In the six months to March 31, Ediston Property sunk to a pretax loss of GBP463,000 from a GBP8.2 million profit the year before.
The trust's rental income was up 19% in the period to GBP10.5 million from GBP8.8 million.
The company's sunk to the loss on a downward revaluation of GBP7.6 million in its property portfolio.
Ediston Property investment portfolio was valued at GBP328.8 million at the end of the half.
"The reduction in value reflects the more challenging environment in which the company now operates and the extremely negative sentiment across the entire retail sector, from which the company was not immune," the company said.
Hill added: "With an attractive yield, strong dividend cover, conservative gearing, adequate cash resources and retail parks that are attracting tenants, the company is well placed to show considerable levels of resilience to any headwinds."
Shares in Ediston Property were down 1.5% on Wednesday at 107.32 pence.