McKay Securities - Half-year Report
- Gross rental income of £10.43 million (30th September 2017: £10.90 million), up 6.2% after adjusting for loss of income from disposals and planned development activity
- Net rental income of £9.17 million (30th September 2017: £9.92 million)
- Adjusted profit before tax of £4.32 million (30th September 2017: £4.70 million)
- IFRS profit before tax of £11.40 million (30th September 2017: £16.54 million)
- NAV (EPRA) up by 1.2% to 326 pence per share (31st March 2018: 322 pence)
- NAV (IFRS) up by 1.5% to 331 pence per share (31st March 2018: 326 pence)
- Interim dividend of 2.8 pence per share, maintaining the level of dividend paid for the same period last year, payable on 3rd January 2019
- Property valuation of £478.55 million, an increase of 4.0% since 31st March 2018, generating a 1.7% (£8.18 million) valuation surplus over cost
- Portfolio ERV of £33.46 million pa, up 0.9% (31st March 2018: £33.15 million pa)
- Contracted rental income of £27.17 million pa (31st March 2018: £27.05 million pa)
- Substantial 23.1% portfolio reversion of £6.29 million pa, well placed to deliver future value and income growth
- Contractor selected for speculative distribution warehouse scheme (134,150 sqft) at Junction 12 of the M4 at Theale
- Pre-let City of London development at 30 Lombard Street, EC3 due to go unconditional shortly on PC
- Continued focus on refurbishing and upgrading properties at lease expiry to deliver high quality, affordable product that appeals to increasingly discerning occupiers in supply constrained markets
- Recognition of ESG efforts with a GRESB (Global Real Estate Sustainability Benchmark) Green Star award for the third year running
Simon Perkins, Chief Executive of McKay Securities, said:
"Our active focus on the office and industrial markets of London and the South East continues to drive outperformance. We delivered further growth in capital and rental values during the period and continue to work on the release of our 23% portfolio reversion. We see sustained levels of demand from a range of investors and occupiers supporting this, despite the economic and political uncertainty surrounding Brexit.
"Attracting and retaining tenants is a cornerstone of our business and today's occupiers increasingly require choice, flexibility, and excellent customer service. We continue to meet these requirements, as demonstrated by recent lettings success across the portfolio and by our active refurbishment and development programme."
"Although the commercial property sector exists in an uncertain operating environment, McKay's markets remain underpinned by strong fundamentals. Recent lettings have de-risked our office development programme, and we are well positioned to deliver further growth in a measured fashion from the significant reversion within our portfolio and from our warehouse development at Theale."