F&C Commercial Property reports that its net asset value total return for the year was 15.9 per cent and the share price total return was 2.8 per cent. The total return from the portfolio was 14.3 per cent, which compares favourably with a total return of 13.3 per cent from the Investment Property Databank (‘IPD’) Quarterly Universe.
The share price at the year-end was 134.4p, representing a discount of 0.6 per cent to the NAV per share of 135.2p.
Twelve monthly interim dividends, each of 0.5p per share, were paid during the year maintaining the annual dividend of 6.0p per share and providing a dividend yield of 4.5 per cent based on the year-end share price. Barring unforeseen circumstances, the Board intends that dividends in 2016 will continue to be paid monthly at the same rate.
Performance in the year was driven by capital growth in the portfolio of 9.2 per cent. The strongest returns were experienced in the logistics and industrial sector in the South East with the logistics ‘big box’ properties performing particularly well.
In absolute terms, the most significant contributors to returns were:
- London, St Christopher’s Place Estate – reflecting yield compression and rental growth on all elements of the Estate.
- Manchester, 82 King Street – a number of the vacant office floors in the property were refurbished and let.
- London, Cassini House, St James’s Street – reflecting the strength of investment demand and strong rental growth.
- Southampton, Upper Northam Road, Hedge End – there was a letting of a vacant unit to Amazon during the first half of 2015 on a new 10 year lease.
FCPT : F&C Commercial Property beats IPD index