Development Securities has posted a 5% fall in net asset value to 262p a share, reflecting a drop in property values and an impairment in its serviced office division.
In its full-year results for the 14 months to the end of February, the investor and developer posted negative revaluations of £4.4m on its £238m investment property portfolio, which includes a number of its joint ventures.
Around half of the negative revaluation was attributed to the administration of five Peacocks stores, although DevSec said it has recaptured around £1.5m in value since the year-end.
The initial yield on the portfolio is now 7.3%.
The £20m NAV drop to £313m also comprised a £2.8m write-down in its small serviced office division and £4.8m of costs related to fixed-interest swaps.
On the back of these adjustments, and a £5.9m dividend payment, the group posted a £10.2m pretax loss for the period – down from the previous year’s pretax profit of £2.6m.
Chairman David Jenkins said the group had achieved “demonstrable progress and significant activity” during the period, although the impact of this progress “in financial terms is yet to be captured in its results”.
Following its two capital £100m capital raisings in 2009 and 2010, the group has invested £163m in 40 assets, including a further 17 which were acquired during the period.
Other highlights from the year included securing forward funding for its 110,000 London office scheme from Scottish Widows Investment Partnership, and completing the early sales at Westminster Palace Gardens and the Wick site in Littlehampton.
It refinanced a £38m facility with Lloyds Banking Group in December 2011 and secured new facilities of £118.8m, including £39.7m of jv facilities.
DevSec has gearing of 58.9% – up from around 30% in 2010, and weighted average maturity of debt at 8.4 years.
It recommended a final dividend of 3.2p per share, making a 14-month total dividend of 5.6p a share.
bridget.o’connell@estatesgazette.com
