UK Commercial Property Trust H1 performance boosted by increase in asset values
Real estate investment trust UK Commercial Property Trust said on Tuesday that its interim performance had improved, driven by stronger asset valuations on the back of a recovering economic outlook.
UK Commercial Property stated net asset value total return for the six months ended 30 June had come to 6.0%, a marked turnaround when compared to the prior year's print of -5.1%.
The FTSE 250-listed firm said the improved NAV performance was primarily a result of an improving global economic outlook and its overweight position in both the industrial and logistics sectors.
UKCM hiked its interim dividend by 40% against the prior half to 0.644p per share, with a further top-up dividend of 0.531p paid in May 2021 in respect of 2020.
Elsewhere, UKCM noted that third-quarter billing period rent collection was at 92% on 31 August, with ongoing negotiations taking place with tenants who were unable to cover their rent by the due date.
Chairman Ken McCullagh said: "The easing of lockdown measures and the vaccination roll out in the UK has triggered a much-needed recovery in the economy and UKCM is seeing the positive impact of this, with portfolio values outperforming our benchmark and improved rent collection.
"Furthermore, our healthy financial position allows us to continue to invest responsibly and consider dividend levels against a backdrop of greater market certainty."
As of 0845 BST, UK Commercial Property REIT shares were down 0.79% at 78.08p.
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