McKay Securities has announced four new lettings in the last quarter, adding a combined £1.33m to the annual rent roll.
In a trading update, the UK REIT specialising exclusively in the London and South East office and industrial markets, said the rents achieved were 3.3% ahead of the 31 March 2017 estimated rental value.
Chief executive Simon Perkins said: “The major highlight was the recently announced letting of the whole of our office development scheme at 9 Greyfriars Road, Reading. This important milestone releases 20% of our development void reversion and converts our letting exposure into income generation and the potential for capital gains at the next portfolio valuation on 30 September 2017.”
In the three months to 30 June, McKay increased its total annual rental income by £1.3m, to £24.7m.
Portfolio occupancy, including developments, increased to 81.1% – up from 77.3% at 31 March.
The REIT noted further income potential from the remaining 32.4% (£8m per annum) portfolio reversion.
Perkins said: “Market conditions remain generally as reported on 19 May in our year-end statement, characterised by historically low levels of supply of modern business space across all our markets and steady levels of occupier demand. The medium-term impact of the hung parliament remains to be seen, but our portfolio is strongly positioned for future growth.”
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
