Max Property has posted a 7.5% rise in NAV to 146.8p a share in its interim results.
It said that this contributes to a 53% hike in NAV since listing in May 2009.
The group’s property portfolio, of which 46% is in London and 41% in industrial assets, rose in value by 3.8% in the six months to the end of September.
This uplift was lead by its London holdings, which include St Katharine Docks and the High Holborn Estate, showed a 6.6% increase in value.
These two key assets are currently undergoing refurbishment, with vacancy rates of more than 30% “presenting good prospects for further growth on securing lettings”.
Also in London, Max said its pubs “continue to be attractive to private investors with two pubs sold in the six months under review at a 4.9% initial yield and disposal prices at an average of 42% over cost”.
Max’s industrial portfolio, including the Industrious portfolio, rose in value by 2.7% as vacancy rates fell to 11% of ERV.
The group said the current initial yield of 10% “compares favourably with the level of prices we are now seeing being bid by investors seeking to increase their exposure to this sector”.
During the period the company secured 82 new lettings, with a rent roll of £1.9m and estimated rental values up 2.2%, with its High Holborn Estate up 15.1%.
The group’s net loan to value ratio is 28.5%, and it has £50m of uncommitted cash available.
Chairman Aubrey Adams said: “Max is well placed to take advantage of the improving property market, with just under half of its assets in London and a further 40% in high-yielding industrial property.
“In markets that still retain some vulnerability to economic pressures, our protection has been to maintain modest levels of leverage, substantial free cash flow and a disciplined acquisition approach, paying conservative prices for properties with asset management angles, underpinned by occupational demand.
“This has led to the creation of a balanced portfolio which we believe is well positioned to deliver attractive returns up to anticipated liquidation in 2016.”
bridget.o’connell@estatesgazette.com
