Local Shopping REIT : LSR – half year results

Local Shopping REIT has released its results for the six months ended 31 March 2014. The net asset value rose from 41p to 43p during the period while the adjusted NAV (excluding liabilities arising from derivative financial instruments) rose to 49p (corrected by LSR on 23 May) from 48p. Property values in the portfolio rose by 0.1% on average. The void rate rose very slightly – from 12.38% to 12.47%. Rents fell on some lease renewals and income was impacted by the introduction of business rates on vacant properties but this was offset by falling administrative expenses.

Net debt fell from £135.6m to £133.5m and the loan to value ratio at the end of the period was 74.7%. Local Shopping REIT has been selling some property (raising £1.8m during the period and adding £155,000 to profits) and properties worth £4.5m were under offer at the end of the period – some of which have since been sold at a premium to book value.