F&C UK Real Estate figures for the six months ended 31 December 2014 have been published. The fund did well over the period – the total return to shareholders was 15% and this came from an 11.9% return on net assets and an increase in the premium that its shares trade on from +0.7% to +3.5%.
The dividend for the period was 2.5p.
The return on the portfolio was 8.9% (the IPD index delivered a return of 8.6% over the period) and the fund also benefitted from an improvement in the value of its interest rate swap liability. Overall property values in the portfolio increased by 6.0% over the period. Industrial properties witnessed the highest capital returns at 8.7%, followed by Offices which increased in value by 6.9%. Retail Warehouses increased in value by 5.9% and standard High Street retail by 1.8%. 1-2 Lochside Way, Edinburgh produced the largest capital uplift of £1.7m, or 23.5%, to £9m on
the back of an improving market and the lease renewal with the tenant HSBC plc.
FCRE : F&C UK Real Estate beats IPD over H2 2014