U+I has reported a 5% decline in net asset value to £360.1m amid “economic and political uncertainty in the UK”.
The developer’s trading gains for the year to 31 March fell by 37% to £42.8m compared to 2018, while basic NAV per share fell by 5% to 289p. It also declared dividends of 10p per share for the year.
Profit before tax fell to £6.3m from £48.2m last year.
Based on its current pipeline, U+I is targeting development and trading gains of £35m-£45m in 2020 (revised down from £45m-£55m) and £45m-£55m in 2021 (revised up from £35m-£45m).
During 2019, U+I completed £27.4m of acquisitions, £7.5m of disposals and £4.6m of asset management initiatives. Its 2020 target is to deliver circa 10% total return, although it said: “Delivery of this could be challenging in current markets.”
Its portfolio value rose from £139.5 to £154m during the year.
Chief executive, Matthew Weiner, told EG: “Our NAV decline was impacted by a fall in our investment portfolio driven by negativity in the retail market. However, I think there is a point there between value and worth. We have retail assets that are functionally relevant rather than bright and shiny. They are for day to day shopping trips and include shops like Superdrug and Boots.”
He added: “We have a clear and focused strategy and the fundamentals that underpin it remain relevant, as we are aligned with political and social trends, where demand for homes, offices, and mixed-use spaces is growing and is a major priority for government and local authorities.
“While the last 13 months have seen economic and political uncertainty in the UK, which has affected decision-making and timing on some of our projects, these uncertainties have also opened up new opportunities to expand our portfolio.
“A major focus over the coming year is on delivering our existing development and trading projects, as well as driving through the investment portfolio strategy.”
To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette
