Highcroft Investments reports an increase in its net asset value from 923p to 965p over the six months ended 30 June 2015. The interim distribution has been increased by 8% to 14.3p.
Gross rental income was up 7%, primarily on the back of rental income from properties in Ash Vale and Crawley purchased in the second half of 2014 and their recent acquisition at Wisbech although rental income was forgone on the sale of their Bristol property in April 2014 and their Beckenham property in July 2014). In addition they benefitted from two positive rent reviews.
Three properties in the portfolio that were vacant have been re-let (one since the period end). Property expenses were pushed up by significant one-off works, including asbestos removal, which had to be carried out at their Norwich and Leamington Spa retail units. The majority of the works have been completed in the period ended 30 June 2015.
The property portfolio gained 3.4% on a like-for-like basis,. Their Warrington unit was sold at auction for a gross consideration of £1.1m. They also exchanged contracts in July on one residential property yielding £835,000 gross. Both transactions, which were in excess of their year-end valuations, are expected to complete during August 2015 and they intend to invest these funds back into the commercial portfolio as and when a sound investment is identified.
They have been selling off equities and equity investments accounted for £3.7m of their £50m net assets.
HCFT : Highcroft revenue up reflecting deals