Highcroft Property benefits from Bicester and Cardiff properties coming on-stream

HCFT : Highcroft Property benefits from Bicester and Cardiff properties coming on-stream

Highcroft Property’s recent interims report a 17% increase in net rental income, primarily due to the acquisition of properties in Bicester and Cardiff during the second half of 2013. HCFT reports that it currently has no void units, and that it is actively managing lease events to try and minimise costs and voids. The property portfolio saw a 6% increase in value during the period, whilst dividend income from the equity portfolio increased 40% to £154k, primarily due to a special income distribution of £64k relating to the demerger of HCFT’s Vodafone holding.

HCFT anticipate that there maybe something of a pause in the commercial property market over the next 12 months. They hope this will provide the opportunity to improve the quality, lease profile and yield of the property portfolio. HCFT remain cautious about the outlook for medium term interest rates, but report that suitable buying opportunities may lead them to alter the equity/property balance as well as to consider other forms of financing. This could include increasing gearing within the portfolio.

Highcroft Property is a real estate investment trust with a portfolio of 19 UK commercial properties, valued between £600k and £6m, primarily comprised retail and industrial units.