Picton Property Income, formerly known as ING UK Real Estate Income Trust, has recorded marginal growth in the value of its property portfolio in the second quarter.
Investment properties had an underlying value of £425.8m in the three months ended 30 June; up by 0.5% on the £425.6m in Q1, the commercial property investment company said.
Despite the property valuation increase, NAV decreased by 0.2% to £208.9m. The drop in value is blamed on investments in the business, but the investments are expected to grow in value over time.
As at 30 June, the portfolio had a net yield of 6.9%, and a net reversionary yield of 7.8%. The occupancy rate was 90%, while the average lease length was 7.6 years.
Key transactions during Q2 included the sale of properties in Basildon, Poole and St Leonards on Sea for £1.7m. Lettings were also signed, generating an extra income of £220,000 per year.
Nick Thompson, chairman of Picton Property Income, said: “Our key focus over the quarter has continued to be on enhancing income from our portfolio, which has been demonstrated through the transactions that have been successfully completed. Our other priorities, namely internalisation and refinancing, are progressing well, and we will update shareholders as soon as we are able.”
joanna.bourke@estatesgazette.com
