McKay Securities is launching a £10m share buyback programme.
The REIT, which invests in offices and sheds in the South East and London, said that “improving visibility of market conditions and business progress” means it makes sense to buy back its shares, which are trading at a “substantial” discount to net asset value.
The programme, run by Stifel Nicolaus Europe, will see McKay buy back up to 5% of its issued share capital. McKay’s shares closed last week at 197.5p, a discount of more than a third on half-year NAV per share of 312p.
Chief executive Simon Perkins said: “Having strengthened our balance sheet earlier in the year with the disposal of 30 Lombard Street, EC3, we continue to consider a range of opportunities for the recycling of capital, and have today announced the allocation of up to £10m for a share buyback programme. With our shares currently trading at a substantial discount to our net asset value, this programme offers the potential to be earnings-accretive and to deliver shareholder value.”
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