UK Commercial Property REIT (UKCM) saw the net asset value (NAV) of its portfolio increase by 0.6% on a like-for-like basis in the second quarter of 2023.
Its unaudited NAV per share increased 0.6% to 81.1p (31 March 2023: 80.6p) with a NAV total return for the quarter of 1.7% (Q1: 2.2%). Underlying EPRA earnings per share grew 6% to 0.86p (31 March 2023: 0.81p) during Q2 and the REIT said it would maintain its dividend at 0.85p per share.
Peter Pereira Gray, chair of UKCM, said: “These results for the second quarter of the year point to another robust performance for UK Commercial Property REIT. A further valuation increase follows that seen in the first three months of the year, together with continued positive leasing momentum, so highlighting the benefits of the company’s diversified and active management strategy.
“As a result, I am pleased that in my first report to shareholders that we are able to show a small increase in NAV and underlying earnings. While uncertainty surrounding future inflation and interest rates remains, there is a cautious but increasing feeling that the worst of the market valuation declines are behind us and that we can look forward with more confidence.
“Our team continues to drive value and income through the successful asset management of the company’s high quality portfolio and we look forward to this continuing into the second half.”
Will Fulton, lead manager of UKCM at abrdn, added: “The company’s diversified portfolio continued to perform well during the second quarter and posted capital growth. Continued positive leasing momentum drove rents forward and occupier demand remains strong.
“We have also been able to resolve the potential void at our two Cineworld cinemas as a result of its US Chapter 11 process, successfully retaining them on restructured terms. While this had a one-off impact on earnings for the quarter, and resulted in a reduction in rent, the annualised income of the portfolio grew over the first six months of the year, highlighting the quality of the properties we own and the benefits of our diversified investment strategy.”
