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McKay Securities posts 20.8% leap in rental income

McKay Securities, the London and South East focused REIT, has reported a 20.8% jump in gross rental income to £12.61m in half-year results.

The company said the increase was due to several lettings secured on development projects. It contributed to a rise in EPRA net asset value (NAV) in the six months to the end of September of 2.1% to 333p per share.

Adjusted profit was up 17.6% to £5.08m and is declared an interim dividend of 2.8p per share. Earnings per share was up 17.2% to 5.39p during the period.

The company completed 10 lettings at a combined rent of £490,000 a year – 2.3% ahead of estimate rental value (ERV). It also made six lease renewals at a 5.3% uplift to the prior rent. The value of McKay’s portfolio was up 1% to £492.14m.

Simon Perkins, chief executive of McKay, said: “Our consistent focus on our core office, industrial and logistics sectors across London and the South East, combined with successful development projects and the intensive in-house management of our portfolio, can be credited for the delivery of another positive set of results, with gains achieved across our key metrics.

“We do not take our ability to out-perform the market in the current environment for granted, and with the benefit of increased headroom have no intention of slowing down the active programme of portfolio initiatives that has helped McKay’s assets stand out in a competitive landscape. The letting of our development and refurbishment schemes, the recycling of capital and the ability to utilise our increased loan facilities provide us with the opportunity to continue building on the substantial growth we have delivered over recent years, and unlock an attractive reversion.

“We remain wary of the political uncertainty affecting our operating environment and hope that some clarity will provide the basis for a more positive economic outlook. In the meantime, our focus on the strongest regions and sectors of the UK and their prospects to enhance our portfolio growth once confidence improves, provides us with an encouraging platform for the future.”

MCKS : McKay Securities posts 20.8% leap in rental income

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