(Alliance News) - TOC Property Backed Lending Trust PLC on Friday set its net asset value fell in the first half of its financial year and it will not be paying what would have been its second or third quarterly dividends.
The Newcastle Upon Tyne, England-based property-backed lending trust's net asset value per share fell 2.5% to 81.7 pence as at May 31 from 83.8p on November 30, the end of of its 2019 financial year.
Total assets increased to GBP28.2 million at May 31 from GBP26.4 million in November while total liabilities increased to GBP6.2 million from GP3.8 million, meaning net assets dropped to GBP22.0 million from GBP22.5 million.
In terms of dividends, Chair John Newlands said: "While the company continues to hold sufficient cash reserves to meet all current commitments, the board and Tier One consider it necessary to maintain increased levels of liquidity within the fund. It has therefore been decided not to declare what would have under more normal conditions been the second and third quarterly dividends for the financial year to 30 November 2020. It is intended that a final balancing payment be made the end of the current financial year so as to at least fulfil the investment trust qualification requirements."
Tier One Capital Ltd is TOC Property's investment adviser.
Newlands commented on outlook, saying: "Trading conditions remain challenging, demonstrated by a reduction in net interest income over the period under report and the Investment Adviser is rightly taking a cautious approach to both portfolio management and fund deployment. At the same time, encouragement may be drawn from the positive signs being seen and from the number of investment opportunities now being presented."
Shares in TOC Property were up 2.3% at 88.00p in London on Friday afternoon.
By Anna Farley; annafarley@alliancenews.com
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