|
Statement of comprehensive income |
Year ended |
Year ended |
|
|
30 June 2018 |
30 June 2017 |
|
Statutory pre-tax profit |
£69.5m |
£29.6m |
|
Underlying pre-tax profit (1) |
£15.7m |
£15.9m |
|
EPRA EPS (1) |
25.06p |
25.05p |
|
Basic EPS |
109.74p |
46.63p |
|
Ordinary dividend per share |
22.78p |
22.12p |
|
Balance sheet |
30 June 2018 |
30 June 2017 |
|
Net asset value |
£352.4m |
£296.7m |
|
EPRA NAV per share (1) |
559p |
471p |
|
Basic NAV per share |
557p |
469p |
|
Net debt |
£71.0m |
£78.5m |
|
Net debt to equity gearing |
20% |
26% |
|
Property portfolio |
30 June 2018 |
30 June 2017 |
|
Vacancy rate |
2.8% |
4.2% |
|
Portfolio value (2) |
£433.5m |
£386.9m |
|
Valuation gain |
£49.7m |
£13.0m |
|
Initial yield on investment properties |
5.6% |
6.2% |
|
Equivalent yield |
6.4% |
7.0% |
The ordinary dividend of 22.78p per share (2017: 22.12p) consists of the first and second quarterly dividends totalling 10.18p, a third quarterly dividend of 5.30p and a final dividend of 7.30p.
Chairman's Statement
Rupert Mucklow, Chairman
I am pleased to report another strong performance by the Group for the year ended 30 June 2018.
Letting activity and occupancy rates have been maintained at very high levels during the 12 months, enabling rental and property values to continue to grow, which has resulted in substantial increases in our pre-tax profit and net asset value per share.
Results
Statutory pre-tax profit for the year was £69.5m, which included a revaluation gain of £49.7m (2017: £29.6m – revaluation gain of £13.0m).
The underlying pre-tax profit, which excludes revaluation movements, profit on sale of investment and trading properties and early debt repayment costs was £15.7m (2017: £15.9m).
The slight reduction in underlying pre-tax profit was due to a £0.6m increase in property outgoings during the year, following the refurbishment of some vacant properties. EPRA earnings per ordinary share was 25.06p (2017: 25.05p).
EPRA net asset value per ordinary share increased by 18.7% during the year from 471p to 559p. Basic net asset value per share increased by 88p to 557p.Shareholders' funds rose by £55.7m to £352.4m (2017: £296.7m), while total net borrowings reduced to £71.0m (2017: £78.5m). Net debt to equity gearing had fallen to 20% (2017: 26%) and loan to value was 16% (2017: 20%).
Dividend
The Board is recommending the payment of dividends amounting to 12.60p per ordinary share, an increase of 3% over last year (2017: 12.24p), making a total for the year of 22.78p (2017: 22.12p), up 3%.
A quarterly dividend of 5.30p per ordinary share is to be paid on 15 October 2018 to Shareholders on the register at the close of business on 14 September 2018 and a final dividend of 7.30p per ordinary share, if approved by Shareholders at the AGM, will be paid on 15 January 2019 to Shareholders on the register at the close of business on 14 December 2018.
Both dividends will be paid as Property Income Distributions (PIDs).
Outlook
It is difficult to predict what might happen over the next 12 months in the industrial occupier and investment markets, particularly with Brexit looming. Usually, at this late stage in the property cycle, with occupancy levels at record highs and industrial property yields at all time lows, we would be anticipating a correction in property values and be preparing ourselves to start acquiring attractively priced investment properties again. However, there are currently no signs of the industrial property market weakening, so we intend to continue to focus our activities towards development for the time being, to include a controlled speculative development programme and should circumstances change, we remain well positioned to capitalise on a weaker investment market.
Rupert Mucklow
Chairman
3 September 2018