LONDON (Alliance News) - AEW UK Long Lease REIT PLC on Wednesday reported a swing to profit for the first half of its financial year, on higher income as it continued to grow its portfolio.
For the six months to the end of December, AEW UK Long Lease reported pretax profit of GBP4.1 million, sharply improved from a loss of GBP4.2 million the year before.
This was on a gain in the fair value of investment properties of GBP2.0 million, compared to a loss of GBP4.5 million the prior year, as well a sharp growth in net rental income at GBP3.3 million from GBP663,000.
The real estate investment trust reported a net asset value of 97.46 pence per share, or GBP78.5 million at the end of December, up from 94.93p per share or GBP78.5 million as at June 30.
During the period, AEW UK Long Lease grew its portfolio to 18 properties from 11 at the end of 2017, leading to an increased portfolio value of GBP112.2 million, up from GBP71.4 million the year before.
The portfolio is fully let and has a weighted average unexpired lease term of 21.5 years.
AEW UK Long Lease declared an interim dividend of 2.75 pence per share, up from 1.00p the year before, and said it is on track to meet its annual target of 5.5p per share.
"The diversification of the portfolio by sector, tenants and geographical regions is generating attractive yields and predictable income streams through long leases, of which 92% of income has contractual exposure to inflation. We continue to see a number of interesting market opportunities and as such are focussed on raising additional equity to support future growth," said Chair Steve Smith.
Shares in AEW UK Long Lease were up 0.6% at 91.00 pence on Wednesday.