UK Commercial Property Trust (UKCPT) has reported a net asset value (NAV) per share of 68.9p (31 December 2012: 69.6p), a fall of 1.2 per cent predominantly caused by 0.4 per cent like for like decline in value of property portfolio.
The NAV total return in the six month period to 30 June 2013 was 2.8 per cent, underpinned by strong income return from the portfolio.
UKCPT has seen robust share price performance in the period with a total return of 20.2 per cent, ahead of the IPD benchmark, FTSE REITs Index and also FTSE All-Share Index.
Chris Hill, chairman of UKCPT, says: “The strong results reported today reflect not only the high quality nature of our portfolio and the active asset management undertaken by our team of experienced managers, but also a broader improvement in sentiment across the UK economy and real estate sector, and signs of enhanced occupier demand. Having delivered resilient performances during the very challenging economic conditions of recent years, UKCPT is now well positioned to benefit from an improving market. We will continue to focus on maximising income and valuation across the portfolio, while identifying acquisitions which we believe will support our strategy.”
Robert Boag, senior investment director at Ignis Asset Management (UKCPT’s investment manager), says: “The first half of the year has seen our continued focus on actively managing our portfolio bear fruit, as broader market sentiment has begun to show signs of improvement. We have also made progress in repositioning the portfolio through disposals of lower yielding assets and acquisitions in our core target sectors. We anticipate this will have a beneficial impact on income and valuations, and we will continue to use our balance sheet strength to make further additions to the portfolio where appropriate. Though we are still at an early stage in any economic recovery, the outlook is now more positive than it has been for several years, and we anticipate making further progress against our strategy.”