U+I portfolio hit by Brexit vote as NAV per share drops

U+I saw its investment portfolio hit by the UK’s decision to leave the European Union, it has said in its interim half year results. The company saw a relative capital value decline of -5.2% compared to the decrease in the IPD Shopping Centre Monthly Index of -6.6%, although market conditions had stabilised in recent weeks, it said. It saw £11.5m development and trading gains in the first half of the year, ahead of guidance of £8m, and compared to £12.5m in the same period in 2015), with a further £11m of gains since August. From April 2016: U+I revenue up Its EPRA NAV per share dropped to 272 pence from the 2016 financial year, which included a 6.3 pence per share reduction in the value of investment properties. Chief executive Matthew Weiner said: “The success that we’ve had in securing larger regeneration projects in the London City Region and Manchester adds significantly to our development pipeline; this reflects both U+I’s focus on fewer, larger projects and our expertise in partnering with the public sector to create new mixed-use projects for the communities in which we work.” U+I disposed of £17m of assets during the period, and added more than £1.5bn GDV to its trading and development pipeline winning projects in London City and Manchester. 31 Aug 2016 31 Aug 2015 29 Feb 2016 Development and trading gains £11.5 million £12.5 million £51.1 million EPRA net asset value (NAV)2 £340.8 million1 £342.7 million £363.5 million Basic NAV £340.5 million1 £342.9 million £363.3 million EPRA NAV per share 272p 274p 291p Basic NAV per share 272p 274p 291p (Loss)/profit before tax (£11.7) million £1.4 million £25.8 million EPRA (loss)/earnings per share (1.8)p 0.4p 17.1p Basic (loss)/earnings per share (9.9)p 1.2p 17.5p Dividend per share (in respect of period reported) 2.4p 2.4p 5.9p Supplemental dividend per share declared – – 8.0p Net debt £128.0 million £203.3 million £161.4 million Gearing 37.6% 59.2% 44.4%