UK Commercial Property REIT has posted a 3.2% increase in net asset value (NAV) in the quarter to the end of December 2020.
The group, which owns a diverse portfolio of property weighted to the industrial sector, saw the value of its portfolio rise 2.9% on a like-for-like basis in the period to £1.21bn.
Together with dividends paid in the quarter (of 0.46p per share), the group reported a NAV total return of 3.8% for the quarter.
The company said it intends to pay a fifth ‘top-up’ dividend this year, to meet REIT legislation of paying 90% of property income, and it expects this to be no less than 0.4p per share.
The company reduced its dividend last year when the pandemic took hold, but rent collection rates since have been greater than the dividends it has paid out.
It said it has now collected 83% of all rent due for the previous four quarter billing dates (March, June, September and December).
This quarter, which was billed in December 2020, the collection rate stands at 84% including rent deferrals and monthly payment agreements.
Portfolio activity
During the quarter the group has sold an industrial estate, M8 Industrial Estate in Coatbridge, for £25.4m, which is 11% ahead of valuation.
It has also acquired an Asda supermarket in Torquay for £16.6m and forward funded a student accommodation development in Edinburgh for £29.1m.
Balance sheet
The company has £218m of financial resources available, comprising £68m cash and £150m from its revolving credit facility.
Gross gearing at 31 December 2020 was 15.1%, while net gearing was 6.4%. This is one of the lowest in the UK REIT sector.
The drawn debt has a blended interest rate of 2.88% and a weighted maturity of 8.2 years.
UKCM : UK Commercial Property REIT posts 3.2% NAV rise