St Modwen has posted a 2% rise in net asset value to 431p per share in the six months to May as valuations bounced back after a slower 2016.
The company, which sold Nine Elms Square, SW8, for £470m in June, saw total accounting return rise from 1.8% to 2.6%.
It reported a more stable valuation environment, with a total movement of £10.8m across the portfolio, compared with a £5.4m negative movement in 2016.
This offset a £9.6m reduction in commercial development profit. St Modwen said this was a “deliberate slowdown” in activity following the Brexit referendum.
Operating profit for the company’s residential platform rose from £12.9m to £13.4m.
It said that despite “uncertain times”, the company is optimistic about the future because it is likely to benefit from longer-term trends tackling the UK’s housing shortage and the need for sustainable brownfield regeneration.
Mark Allan, chief executive of St Modwen, said: “The business continued its resilient performance across the first six months of the year, despite an uncertain market environment, with all parts of the group contributing positively.
“We also concluded our strategy and portfolio review, which has confirmed the significant potential present in our business and pipeline and we are now focused on realising these opportunities in the months and years ahead.”
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
