UK Commercial Property REIT has reported a 3.9% fall in net asset value (NAV) for the quarter to the end of March.
NAV per share at the group, which owns a diverse portfolio of UK real estate, was 86.3p at 31 March 2020, compared to 89.8p at the end of December 2019.
The fall was driven by a 3.1% decrease in the value of its property portfolio to £1.29bn.
The company also provided an update on rent collection, stating that, as at close of business on 28 April 2020, it had received 70% of rents due for the second quarter of the year.
It has maintained a quarterly dividend, due in May 2020, but at the reduced rate of 50% which equates to 0.46 pence per share. It said the dividend policy remained under review.
The company has low gearing, of 13.1%, and £194m of financial resources available to it. This comprises uncommitted cash of £94m after allowing for future capital commitments and the May 2020 dividend plus £100m available from its revolving credit facility.
Portfolio activity
The company has exchanged contracts to sell Eldon House, its only office asset in the City of London, for £40m, at a 3.6% discount to its valuation as at 31 March 2020. It purchased the property for £27.8m in 2015 and has since refurbished the public spaces, achieved full occupancy and regeared existing leases.
The group has also agreed to a forward funding of a new 221 bed student residential development in Exeter, adjacent to the main university campus, with completion expected for the start of the 2022/23 academic year. The land, with full planning permission, was acquired for £6.5m with an additional capped funding commitment of £21.5m.
UKCM : UK Commercial Property REIT posts 3.9% fall in NAV