UKCPT results ‘resilient’ in challenging market
UK Commercial Property Trust’s (UKCPT) latest results show ‘resilient performance’ according to chairman, Christopher Hill.
UKCPT reported a net asset value (NAV) per share of 74.1p as at 31 March 2012, down from 75.5 p at the end of December 2011, in it’s latest management statement covering the first three months of the year. The group’s portfolio is now valued at GBP1,067.2 million, which represents a like-for-like decrease of 0.9% in the quarter before capital expenditure. This decrease was partially mitigated by movements in swap valuations in the quarter.
“Our results for the first quarter show a resilient performance, in a market that continues to be characterised by low transaction volumes as well as pressure on rental levels and valuations,” says Hill. “In spite of these challenges, the quality of our portfolio and our team’s expertise in hands on asset management has allowed us to continue our longer term outperformance of the broader market.”
The Company intends to declare a first interim dividend, in respect of the period from 1 January 2012 to 31 March 2012, of 1.3125p per Ordinary Share, with ex-dividend and payment dates of 9 May 2012 and 31 May 2012 respectively
Based on an annual dividend of 5.25p and the share price as at 31 March 2012 of 72.3p, the Company’s shares yield 7.3%, which compares favourably to the IPD Monthly All Property Initial Yield of 6.2% and the FTSE All-Share Index yield of 3.5%.
Over five years to the end of March 2012, the Company has produced a NAV total return of 1.1% and share price total return of -2.9%. This compares favourably to the -8.7% total return on the IPD Monthly Index and –55.5% total return on the FTSE Real Estate Investment Trusts Index over the same period.
“Although signs of economic recovery remain muted, we do see reasons for cautious optimism, and have seen some evidence of an increasing appetite for risk from some property investors, although the limited availability of funding may constrain this to a certain extent,” says Hill.