LONDON (Alliance News) - Highcroft Investments PLC on Friday increased its dividend for 2018 despite a drop in profit amid a year of political and economic uncertainty.
The real estate investment trust said pretax profit dropped 40% to GBP4.8 million from GBP6.7 million the year before, as the net valuation gains on investment properties dropped to GBP484,000 from GBP3.3 million.
Net rental income for 2018 however edged up by 7.8% to GBP4.9 million from GBP4.5 million the prior year, and net asset value per share at the end of December increased by 4.0% to 1,207 pence from 1,161p a year prior.
During the year, Highcroft made GBP5.2 million in property acquisitions, and generated GBP6.1 million in sales, leading to an investment property valuation of GBP77.7 million, up 0.8% from GBP77.1 million.
Highcroft declared a final dividend of 33.75 pence per share, bringing the total payout to 52.50p, rising by 14% from 46.25p the prior year.
"Highcroft is well-positioned with a high quality income-producing portfolio. However, we expect 2019 to be another challenging year. We operate in a very competitive landscape with continuing political and economic uncertainty, particularly around Brexit and its potential effects on market sentiment and tenants' ability to continue to pay our rents," said Chair Charles Butler.
"We therefore remain cautious and diligent in our approach to ensuring we select the right properties to deliver long-term shareholder value," Butler added.
Shares in Highcroft were up 2.5% at 940.00 pence on Friday.
