Losses narrow for Local Shopping REIT as asset exodus pays off

Local Shopping REIT has narrowed its losses for the year ending 30 September 2019, after slashing its portfolio to eight properties from 75 assets over the year. The REIT made a loss before tax £1.8m, compared to £7.1m over the same comparable time period the year before. The loss “reflected the significant reduction of operational income” for the group after pursuing a strategy of slashing its stock. The cost of remaining a listed entity, combined with the revaluation of its remaining portfolio and losses on some disposals, also contributed to the losses made. Over the year, 66 properties were sold at a total price of £18.9m. The value of its remaining eight assets as of 30 September stood at £3.4m, according to valuations by Allsop. Its 75-strong portfolio was valued at £22.3m the year before. Excluding the value of properties disposed of during the year, the properties reduced in value by 7.1% on a like-for-like basis. The investment property portfolio valuation as at 30 September 2019 reflected an equivalent yield of 14.4%. The previous year, this stood at 12.5%. NAV per share dipped from 34p at 30 September 2018 to 31p as of 30 September 2019. During 2019, following a share buy-back scheme, the company was taken over by Thalassa Holdings and a new board of directors was appointed. The group claimed it was satisfied it could continue trading for another 18 months. To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette