Ediston sees 4.8% uplift on property portfolio – Ediston Property Investment Company has announced its full year results for the year ended 30 September 2017.
- NAV per share at 30 September 2017 of 111.32 pence (30 September 2016: 107.07 pence), an increase of 4.0% after taking into account capital expenditure and transaction costs
- Fair value independent valuation of the property portfolio as at 30 September 2017 of GBP173.4 million, a like-for-like increase of 4.8% on the valuation at 30 September 2016
- The office at Cutlers Gate, Sheffield, was sold for GBP20.2 million, a 2.0% premium to the March 2017 valuation
- The Sheffield sale proceeds were immediately reinvested in the acquisition of Pallion Retail Park, Sunderland for GBP25.6 million
- The office building in Reading, Phoenix, was sold for GBP20.5 million, in line with the June 2017 valuation
- Improved dividend cover
Post-period end activity, to 31 December 2017:
- Dividend to be increased by 4.5% to 5.75 pence per share from January 2018, payable from February 2018
- Acquired four prominent retail parks for GBP144.0 million
- Raised approximately GBP88.7 million of new equity
- Secured additional debt facility of GBP54.2 million, maturing in 2027. Total debt is now GBP111.1 million at an ‘all-in’ fixed rate of 2.86%
- GBP25.8 million of cash available for further investment and development
- Total assets of GBP347.3 million
William Hill, Chairman of the Company, said: “Demand for UK real estate remains strong from both domestic and international investors. However, it seems likely that the reduction in property yields we have seen over recent years is at or close to an end. Future returns will be generated from the resilience of portfolio income, the ability to grow income where there are supply/ demand imbalances and the skill to generate new sources of income from management initiatives.
Following the activity during the financial year and remaining part of the 2017 calendar year, with total assets of GBP347.3 million, the Company has made significant steps forward in its development and is well-set for further progression.”
Calum Bruce, Investment Manager, said: “Investment volumes and the supply of investment stock will be key to the market going forward. Retail warehousing is the one sector of the market which is looking attractive. We identified a portfolio of four retail parks which we were able to acquire in an off market transaction. The new properties are good quality, well-located, provide a good income stream and have asset management angles to exploit.”
EPIC : Ediston sees 4.8% uplift on property portfolio