(Alliance News) - Property investor UK Commercial Property REIT Ltd on Thursday reported a decline in its net asset value over the first half of 2019, despite a strong portfolio performance in the period for its industrial and office sector positions.
NAV per share as at June 30 was 93.2 pence, down 1.4% from 94.5p on the same date a year before and 0.1% from 93.3p at the end of December.
Total income for the six-month period dropped 41% to GBP38.9 million from GBP66.9 million the prior year, as pretax profit more than halved to GBP21.9 million from GBP50.1 million.
Profit performance was hurt by a sharp drop in gains from investment properties at GBP558,000, compared to GBP31.1 million the year before.
UK Commercial said however its portfolio total return for the period was 2.1%, outperforming the MSCI/IPD benchmark, which returned 1.2%. The portfolio performance was driven by a good performance in the industrial and office sectors.
The trust paid an interim dividend of 1.84 pence per share, in line with the year before.
"The company's strategy to create a diverse commercial portfolio continues to produce sustainable, high-quality rental income, and has once again outperformed the benchmark in the first half of this year," said Chair Andrew Wilson.
"With a high-quality portfolio of assets located throughout the UK, a strong balance sheet and the lowest gearing amongst the company's peer group, UK Commercial is well positioned to add value to its property portfolio and enhance returns for its shareholders," Wilson added.
Shares in UK Commercial Property REIT were up 0.4% at 83.50 pence on Thursday in London.
UK Commercial Property Trust (UKCM)