McKay Securities has posted a 1.2% rise in EPRA net asset value during the six months to the end of September.
The REIT, which specialises in the London and South East office and industrial markets, said EPRA NAV per share reached 326p, up from 332p at the end of March.
Gross rental income was £10.43m, growing from 6.2% compared with the same period last year, after adjusting for loss of income from disposals and planned development activity.
However, net rental income decreased by 7.5% to £9.17m, compared with £9.92m in the previous year, on the back of higher non-recoverable property costs.
Its portfolio value was £478.5m, representing a 4% increase from the end of March and generating a 1.7% (£8.2m) valuation surplus over cost.
Portfolio ERV was £33.5m pa, up by 0.9% from its equivalent at the end of March.
Simon Perkins, chief executive of McKay Securities, said: “Our active focus on the office and industrial markets of London and the South East continues to drive outperformance. We delivered further growth in capital and rental values during the period and continue to work on the release of our 23% portfolio reversion. We see sustained levels of demand from a range of investors and occupiers supporting this, despite the economic and political uncertainty surrounding Brexit.
“Although the commercial property sector exists in an uncertain operating environment, McKay’s markets remain underpinned by strong fundamentals. Recent lettings have de-risked our office development programme, and we are well positioned to deliver further growth in a measured fashion from the significant reversion within our portfolio and from our warehouse development at Theale.”
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