Brixton Estate is boosting the interim dividend to shareholders by 3.5% to 3p per share; profits for the six months to June edged upwards by 7% to £12.6m on the back of a rise in net rental income to £24.9m (£22.9m). The total interest charge for the period increased to £16.9m (£15.4m), of which £5.9m (£5.5m) was capitalised in the cost of developments.
The company reports a stable vacancy rate of 7%, with its City of London properties fully let. “More than 70% of existing rents in the United Kingdom are derived from leases which run into the next century and where there is no opportunity to break before the year 2000,” says Harry Axton, Brixton’s chairman.
Brixton is completing its UK development programme and is keeping new projects on ice until market conditions improve. Overseas work continues on the final phase of the Brussels Riverside Business Park, where 87,000 sq ft is expected to be finished early next year.
Managing director Douglas Gardner is to be promoted to chairman following the retirement of Axton, which will be at the company’s AGM in June 1993. Property director Terence Nagle will step into Gardner’s shoes.
Axton joined Brixton as managing director in 1961, becoming chairman in 1983. During his retirement he intends to spend more time sailing and playing the organ.
