Property investor Picton has reported a 0.3% rise in EPRA net asset value per share to 92.5p for the quarter ending 31 December, compared with the previous quarter.
There was a like-for-like increase in its property portfolio valuation for the quarter of 0.1%, which the REIT said was driven by industrial sector gains.
The REIT’s loan-to-value ratio was 25%, dipping from 25.5% on 30 September.
Total return for the quarter was 1.2%, down on the 1.5% seen in the previous quarter.
Net assets increased by 0.2% to £498.1m.
The REIT declared a dividend of 0.874p per share, to be paid on 28 February.
Nick Thompson, chairman of Picton, said: “Given the current macro environment, we are encouraged by positive NAV growth during the period.
“The benefits of lower taxation, through our entry into the REIT regime, alongside lower financing costs this quarter, have positively contributed to this result.”
During the period, the REIT completed five surrenders and one agreement to surrender, where the market rents were 23.2% ahead of rent passing and surrender payments received totalled more than £300,000.
Occupancy was 93%, principally affected by the surrender activity. This compared with 94% on 30 September 2018.
Michael Morris, chief executive of Picton, said: “As the debate and uncertainty around Brexit continues, it is becoming much clearer which parts of the market are still active and which are not.
“While we believe that our portfolio is well positioned with a strong weighting to the industrial sector, we have also proved that it is possible to limit the impact of some of the structural challenges being faced in other sectors through creative and innovative asset management.
“The expansion and transfer of Lidl from one unit in Swansea to replace a retailer subject to a CVA is an excellent example of this. We are also encouraged by our pipeline of asset management initiatives.”
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