UK Commercial Property Trust has announced a stable net asset value of 69.5p a share in its interim management statement.
The Guernsey-based firm said this was an increase of 0.9% compared with the same three-month period to the end of September last year.
Its portfolio is now valued at £1bn, a 1% like-for-like increase in the quarter before capital expenditure that was driven primarily by capital value increases in the company’s South East industrial and central London office assets.
This performance was slightly below the IPD Monthly Index.
The firm’s void rate of 6.1% across its portfolio rises to 8.8% including tenants in administration, but compares favourably to the IPD benchmark of 10%.
It added that its gearing of 21.5% – gross borrowings (excluding swaps) divided by total assets less current liabilities – remains the lowest in its peer group.
Net gearing – borrowings (excluding swaps) less cash divided by total assets less current liabilities and cash – was 16.8%.
In a statement released this morning, the company said that it intended to declare a third interim dividend of 1.3125p per ordinary share, with ex-dividend and payment dates of 13 November 2013 and 29 November 2013 respectively.
Chairman Christopher Hill said: “There is no doubt that confidence is returning to the UK real estate sector, both in investment and occupier markets, and this is beginning to be reflected in the valuation of our portfolio, which recorded growth of 1% for the third quarter.
“The retail sector continues to see the most challenges; however, our asset management team is focusing considerable attention on initiatives to grow income and I am optimistic that these will continue to be successful.
“The diversified nature of the company’s portfolio, with its South East bias, should benefit from this improved investor sentiment, particularly where there is evidence of a robust income profile and a firmer occupational backdrop.
“In these circumstances the company, with its strong balance sheet, will be able to identify and implement income- and capital-enhancing asset management initiatives and invest further in sound income-producing institutional-grade assets offering the potential to enhance income and capital value.”
bridget.oconnell@estatesgazette.com
