UK Commercial Property Trust on the final furlong to REIT status – UK Commercial Property Trust (UKCM) has released its final results for the year ended 31 December 2017.
REIT conversion
UK Commercial Property Trust has been seeking to convert to a REIT. It has now received an irrevocable undertaking from its largest shareholder, Phoenix Life Limited, to support REIT conversion. As a result, a circular will be issued to shareholders in due course with the intention being to convert to a REIT, subject to shareholder approval, on 1 July 2018.
Results
The NAV total return of the company was 12.2% (2016: 3.8%) driven by its underlying portfolio’s total return of 12.2% (2016: 4.4%) versus the performance of the benchmark index, the IPD index, which returned 10.7% (2016: 3.6%)
The thare price total return of 9.4% (2016: 3.8%) for the year leading to a share price total return of 72.5% since inception, comparing favourably to the minus 4.4% FTSE All-Share REIT Index total return over the same period.
Net gearing of 12.8%, remains one of the lowest in the Company’s peer group and the wider REIT sector.
The dividend yield of 4.2% compared to the FTSE All-Share REIT Index yield of 3.4% and the FTSE All-Share Index yield of 3.6%.
The company reported a 1.8% increase in rental income to £69.8 million (2016: £68.5 million).
EPRA earnings per share (excluding deferred tax) was 3.42p (2016: 3.43p), equating to a dividend cover of 93% which is expected to grow as cash is invested and asset management initiatives are delivered.
UK : UK Commercial Property Trust on the final furlong to REIT status