McKay Securities has announced it results for the year ended 31 March 2014. Over the year the company’s EPRA NAV fell from 238p to 227p. The final dividend was raised a little – the full year dividend rose from 8.5p to 8.6p. McKay Securities raised an additional £87m of equity capital in February. They had invested some of this by the end of the period but the cash balance accounts in part for the decline in McKay Securities’ loan to value ratio to 14.7% from 44.4%. The new capital was raised at a price of 189p and the dilutive effect of issuing capital at a discount to asset value accounts for the fall in the NAV – property values in the portfolio rose by 10.2% over the year.
Rental income was impacted by the sale of Bothwell Street in Glasgow (as part of a strategy to concentrate their portfolio on London and the South East of England) – they say this income is being replaced as the sales proceeds are reinvested. They are also refurbishing existing properties and planning office redevelopments in Redhill and at 30-32 Lombard Street.
As part of the investment programme, McKay Securities has today announced that it is spending £5.8m to buy 9 Greyfriars Road in Reading. The building comprises 38,200 sq ft of office space, has planning permission for a refurbishment and is currently vacant.