McKay Securities has posted a 3% rise in NAV to 312p a share in its half year results for the six months ended 30 September 2017.
The REIT, which specialises exclusively in the London and South East office and industrial markets, said its adjusted pre-tax profit rose 6.2% to 4.7m and net rental income was up 8.2% to £9.9m.
The company reported an 8.2% rental increase year-on-year to £9.9m for its portfolio.
“Our clear focus on London and the South East, backed by our on-the-ground presence in these markets, remains at the core of our success,” said McKay Securities chief executive Simon Perkins.
“A particular highlight during the period was securing the letting of 9 Greyfriars Road in Reading which we transformed from an unloved office block into a modern, award-winning work space, which is now fully let to a major co-working operator. As a result of this and other initiatives, our contracted rents have risen a further 5% during the period – and over 40% since our capital raising in 2014.”
Property valuation was up 5.3% (£22.7m), to £452.7m, generating a 2.7% (£11.9m) surplus over cost.
Perkins added: “Looking ahead, there remains significant levels of income potential within our portfolio to realise on behalf of our shareholders. While the pace of gains remains in part dependent on the health of the occupier market, we have a high quality portfolio of diverse assets in sought after locations which puts us in a strong position for the future.”
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