LONDON (Alliance News) - Highcroft Investments PLC on Friday reported a strong set of results for 2017 as profit grew sharply, but said it was cautious heading into 2018 amid continuing political uncertainty.
The real estate investment trust said pretax profit rose to GBP6.7 million in 2017 from GBP4.3 million reported in the year earlier, after rental income experienced a lift and the value of its investment properties increased.
Net rental income in the year rose to GBP4.5 million from GBP3.7 million year-on-year, whilst valuation gains from its investment properties grew to GBP3.3 million from GBP973,000 in 2016.
Earnings per share were 58% higher at 132.30 pence per share from the 84.00p reported the prior year.
As a result, Highcroft lifted its final dividend to 30.00p from 26.00p, bringing the total payout to 46.25p, up 13% from 41.00p paid in 2016.
Highcroft's investment property valuation was up 17% year-on-year to GBP77.1 million from GBP66.0 million, leading its net asset value per share to rise 8.4% to 1,161.00p from 1,071.00p.
That was partly driven by the GBP9.5 million worth of two warehouses acquisitions in the year, which were partly funded by the GBP2.3 million generated in proceeds from the sale of property.
Medium-term debt has risen to GBP19.4 million at the end of the year from GBP14.9 million at the end of 2016, and the company said its cash and liquid equity investments had declined to GBP4.0 million from GBP5.8 million.
Highcroft Chairman Charles Butler said: "Highcroft is well positioned with a high quality income producing portfolio. We go into 2018 with positive momentum gained in 2017 and well positioned to continue our portfolio growth. We are however in a very competitive landscape with continuing political uncertainty so we remain cautious and diligent in our approach in ensuring we select the right properties to deliver long term shareholder value."
The stock was up 4.3% at 918.00p per share on Friday.
