McKay Securities delivered 11% growth in its EPRA NAV over the year that ended on 31 March 2016. The EPRA diluted earnings per share rose from 5.22p to 7.76p. The Board is recommending a 1.7% increase in the final dividend to 6.1 pence per share (March 2015: 6.0 pence). This will be paid as an ordinary dividend on 28th July 2016. It takes the total dividend for the year to 8.8 pence per share (2015: 8.7 pence), and dividend cover to 96.9% on recurring earnings.
The GBP2.15 million increase (37.2%) in adjusted profit before tax to GBP7.94 million (March 2015: GBP5.79 million) was due primarily to a significant increase in rental income. A small increase in administration costs was in part compensated for by a reduction in property outgoings. Gross rental income, whilst GBP2.54 million higher than the previous year, benefited from GBP1.53 million in new lettings and GBP1.72 million from acquisitions in the previous and current year, offset by an GBP0.71 million reduction as a result of disposals and portfolio vacancies.
The portfolio void (by ERV) reduced over the period to 7.2% (March 2015: 7.4%). With the inclusion of development properties, the total portfolio void reduced to 25.8% (March 2015: 26.8%).
The weighted average lease term of the portfolio reduced slightly to 5.5 years and 4.5 years to expiry and lease break respectively (March 2015: 5.8 years and 5.0 years).
With one acquisition and five disposals over the period, the portfolio totalled 36 properties at 31st March 2016, valued at GBP401.17 million. The average lot size increased to GBP11.14 million (March 2015: GBP8.82 million). The 33 properties within the investment portfolio, totalling 1.44 million sq ft with 209 tenants, were valued at GBP358.35 million. The three properties within the development programme, totalling 0.14 million sq ft, were valued at GBP42.82 million.
MCKS : McKay Securities generates 11% NAV uplift