LONDON (Alliance News) - F&C Commercial Property Trust Ltd Monday said its portfolio increased in value over the three months to the end of March, representing a 3.2% increase after allowing for capital expenditure.
The trust, which aims to provide shareholders with an attractive level of income coupled with the potential for capital and income growth by investing in a diversified UK commercial property portfolio, said its portfolio was valued at GBP1.03 billion on March 31, compared with GBP927.9 million at the end of 2013.
The portfolio recorded a total return of 4.5% over the period, compared with the IPD Quarterly Universe total return of 3.6%. The portfolio continues to be in the top quartile of the IPD Quarterly Universe over one year and top decile over three and five years.
During the quarter, the trust purchased two units at Sears Retail Park, Solihull for GBP4.5 million, and since the end of the period it has completed the purchase of 1 Barrett Street, London W1 for GBP6.3 million. This is an adjoining property to St. Christopher's Place Estate.
As announced on April 29, the trust completed the purchase of Blocks 1 and 2, Prime Four Business Park, Kingswells, Aberdeen in March for a cost of GBP65.0 million, and the purchase of Blocks 3 and 4 in April for GBP30.4 million. This is a significant transaction for the trust and provides it with exposure to one of the most buoyant office markets in the UK as well as increasing its level of dividend cover.
The valuations of Blocks 1 and 2 are reflected in the NAV per share as of March 31 and the valuations of Blocks 3 and 4 will be recognised in the NAV per share as of June 30.
Void levels within the portfolio were 6.5% of estimated rental value, excluding properties held for development, as of March 31, compared with the benchmark void rate of 7.5%.
NAV per share total return was 4.8% for the three-month period. On a capital basis, NAV per share rose to 108.9 pence, from 105.3 pence.
F&C Commercial Property Trust shares were Monday quoted at 117.70 pence, up 0.2%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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