McKay Securities has announced its full-year results for the year ended 31 March 2017. The company describes the year as being one of, “Strong performance, delivering record rental income and portfolio value”. The company’s summary of the year’s highlights are as follows:
Financial Highlights
Adjusted profit before tax up 8.3% to £8.60 million (31 March 2016: £7.94 million)
- EPS (adjusted basic) up 8.2% to 9.2pps (31 March 2016: 8.5pps)
- Gross rental income up 3.1% to a historic high of £20.79 million (31 March 2016: £20.16 million)
- IFRS profit before tax of £17.59 million (31 March 2016: £53.16 million), reflecting a lower valuation surplus contribution compared to prior year
- NAV (EPRA) per share up 0.7% to 303 pence (31 March 2016: 301 pence)
- NNNAV (EPRA) per share up 2.9% to 285 pence (31 March 2016: 277 pence)
- Loan to Value ratio of 31.6% (31 March 2016: 28.9%)
- Final dividend up 3.3% to 6.3 pence per share (2016: 6.1 pence per share)
- Total dividend for the year up 2.3% to 9.0 pence (2016: 8.8 pence)
Portfolio Highlights
- Overall increase in property portfolio value of 7.2% (£28.75 million) to a record £429.92 million, generating a 1.7% (£7.07 million) valuation surplus
- Good progress in contracted rental income, up 11.0% (£2.32 million pa) to £23.42 million pa, following 35 lettings over the period, 26 of which were new to the open market
- 3.9% growth in portfolio ERV (like-for-like) to £32.68 million
- Substantial portfolio reversion with potential to increase income by a further 39.5%
- Redevelopment schemes in Reading and Redhill completed and being marketed, with 10,643 sq ft debut letting at Prospero, Redhill quickly secured
- Redevelopment of 30 Lombard Street, EC3, on schedule for delivery in mid-2018, with marketing campaign to commence imminently
- Unconditional contracts exchanged on disposal of Pinehurst Park, Farnborough asset, at 11.5% premium to book value
The company’s chairman, Richard Grainger, says that, their refurbishment programme and proactive asset management activities have continued to release the substantial portfolio potential that they have built up, with rental and capital growth out-performing the market. He also says that two of their three development projects reached completion and their third scheme remains on track for delivery next year. He says that, as a result of this progress, the company’s rental income and portfolio value have reached historic highs for the Group, contributing to increases in shareholders’ funds, profits and dividend.