UKCM’s shift to alternatives brings gains

UK Commercial Property REIT has reported a 3.2% uptick in its net asset value per share following portfolio gains in a shift to alternatives. The REIT’s NAV rose to 86.7p per share at 31 December 2020, giving it a NAV total return of 3.8% for the quarter. UKCM’s like-for-like portfolio value increased by 2.9%. A strategic repositioning has seen it drop non-performing assets such as retail, with a focus on alternatives and industrial for the £1.2bn portfolio. The REIT has shaved £30.5m off its retail assets largely through disposals, with growth dedicated to industrials, up £22.8m. Industrial assets currently make up 57.7% of the portfolio, with retail at 16.9%, offices at 14.1% and alternatives at 11.3%. Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: “We will continue to look for opportunities to invest in modern- economy, future-fit property sectors which are supported by structural changes in society while at the same time ensuring our investors continue to benefit from the geographic and sector diversification our portfolio affords.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette