Retail park investor and developer Ediston Property Investment Company has delivered a net asset value (NAV) total return for the year to 30 September 2020 of -16.6% as COVID impacts the value of its properties.
Operationally, the year was a strong one despite the effects of the pandemic. The group carried out eight asset management activities on its 10 retail warehouse assets, including 12 lettings worth £1.6m per annum.
It also started the construction of a retail park in Haddington that is fully pre-let and on completion will deliver £875,000 of additional rent per annum.
Rent collection improved as the year progressed and was at 89.3% to the end of September 2020 – far higher than most retail focused property companies. The relatively high rent collection level, which rises to 97.2% including rent deferrals, is due to the predominantly convenience retail tenants in its portfolio that have been less affected by lockdowns.
The company paid a dividend of 4.88p during the year, which is down on the 5.75p it has paid in previous years. It took the decision to reduce the dividend level at the start of the pandemic but said rent collection had been better than expected and if that continued it would look to reinstate the dividend at previous levels.
The group’s NAV fell by 20.9% to 86.01p per share, mainly due to a 14.5% like-for-like reduction in the value of its property portfolio.
Investment manager Calum Bruce said : “There are signs that the investment market, which shunned retail earlier in the period, is again looking at retail warehousing as an asset class worth investing in. The market is starting to appreciate the attributes of convenience led, out-of-town retail warehouse parks and the fact that it should not be lumped together with the high street and shopping centre sub-sectors. If this continues, there is a prospect of some recovery starting in 2021 for retail warehousing.”
EPIC : Ediston Property reports drop in NAV