Ediston Property Investment Company, the real estate investment trust, has reported a fall in net asset value (NAV) of 5.7% in full year results.
The drop was largely due to a 3.5% fall in the value of its property portfolio, which now stands at £319.2m, and its exposure to the retail sector. All of its retail assets are in the more resilient retail park sub-sector, however, which have suffered less than shopping centres and are forecast to benefit from an uplift in tenant demand.
NAV per share at 30 September 2019 was 108.7p compared to 115.3p per share on 30 September 2018.
Earnings in the year increased, however, with EPRA earnings up to £14.1m, compared with £12.9m a year previously. On a per share basis EPRA earnings were 6.66p. The company paid out a dividend in the year of 5.75p per share, giving it a dividend cover of 116%.
More positive news was that vacancy across its portfolio fell by 5.7% in 2018 to 2.9% this year, with the company signing up eight new tenants in the year with a contracted rent of £1.1m.
Ediston’s chairman WIlliam Hill said: “Retail is not dying, it is changing. The extent of the letting activity shows that a market clearly exists for the right accommodation which suits retailers with good business propositions. The board believes the company is on the right side of the retail change given its assets are largely in convenience led retail warehousing and this will increasingly be evident going forward.
“The board is as positive as it can be on the medium-term outlook. The company has a well-covered dividend, leverage comfortably below covenant limits and assets that are well-let and are subject to a proactive management regime.”
EPIC : Ediston reports 5.7% fall in NAV