LONDON (Alliance News) - Highcroft Investments PLC increased its dividend after a rise in property values and increased rental income helped push up its profit for the year.
The real estate investment trust on Wednesday said its pretax profit rose to GBP7.2 million in 2015 from the GBP7.0 million reported in the previous year, after rental income experienced a small lift and the value of its investment properties increased.
Net rental income in the year increased to GBP3.1 million from the GBP2.9 million generated in 2014, whilst valuation gains from its investment properties rose to GBP4.8 million from GBP3.8 million in 2014.
Earnings per share were 3% higher in 2015 at 140.0 pence from the 136.5p reported last year.
As a result, Highcroft said it will pay a dividend of 38.8p for the year, a 7.7% rise from the 36.0p paid the year before.
Highcroft's investment property valuation was up 25% year-on-year to GBP58.0 million from GBP46.5 million, leading its net asset value per share to rise 11% to 1,026.0p from 923.0p.
That was partly driven by the GBP8.5 million worth of property acquisitions in the year, which was partly funded by the GBP2.4 million generated in proceeds from the sale of property.
Medium-term debt has risen to GBP11.5 million at the end of the year from only GBP4.0 million at the end of 2014, but the company said its cash and liquid equity investments had increased to GBP8.0 million from GBP6.6 million.
"We are very pleased with the results for the year and remain optimistic that we start 2016 from a position of strength upon which we hope to build through further attractive acquisitions. We will continue to reduce our investment in equities in line with our medium term strategy. We have set ourselves some challenging objectives for 2016, and we expect that our actions will continue to improve shareholder value via increased dividends and asset values," said Chairman John Hewitt.
Highcroft shares were trading up 2.9% to 967.60 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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