Net asset value per share remained virtually unchanged for F&C Commercial Property Trust Limited, at 98.9p per share for the first half of the year, compared with 98.7p from the same period in 2011.
However, pretax profits for the commercial property specialists fell dramatically to £9.4m, compared with £38.4m in the first six months of 2011. Unrealised losses of £7.4m on investment properties were partly responsible for the fall in profits.
The company raised £28m of new equity during the first half of the year, and a further £20m since the end of the accounting period. No acquisitions or disposals were made, although the company agreed in July to purchase four prelet apartment blocks in Aberdeen fro £98m.
Rental growth was lower during first half of the year, as occupiers were more reluctant to commit to leases owing to economic uncertainties and constraints on credit, according to the company’s interim statement.
Void rates remained unchanged at 6% during the period.
F&C Commercial Property Trust’s chairman Chris Russell said: “The UK commercial property market is likely to continue to be affected by the uncertain economic environment and general level of risk aversion. It is likely that prime properties will continue to outperform secondary properties, but as uncertainties continue the definition of prime may be drawn more tightly. In addition, the market is also likely to remain stock specific. Those properties capable of delivering a secure and long-term income stream will remain in demand in these uncertain times.
Against this background, the managers will continue to take positive steps to protect the company’s income stream in terms of covenant strength and lease length, and will continue to seek successful asset management initiatives and acquisitions of prime properties with attractive income characteristics.”
F&C Commercial property trust has assets of £940.2m under management as of June 30 2012.
sophia.furber@estatesgazette.com
