UKCM boasts strong first half as NAV discount grows
Abrdn’s UK Commercial Property REIT has boosted NAV return to 12.3% after a strong first half.
Ken McCullagh, chair of the £1.7bn REIT, said: “The company continues to outperform its benchmark. This performance has been driven by a disciplined investment focus on future fit and operational asset classes that look to capitalise on the imbalance between supply and demand, are underpinned by societal changes that remain highly supportive of the occupational markets and rental growth.”
IFRS net asset value rose by 10.7% over the period to £1.47bn, lifting NAV per share to 112.9p.
Abrdn’s UK Commercial Property REIT has boosted NAV return to 12.3% after a strong first half.
Ken McCullagh, chair of the £1.7bn REIT, said: “The company continues to outperform its benchmark. This performance has been driven by a disciplined investment focus on future fit and operational asset classes that look to capitalise on the imbalance between supply and demand, are underpinned by societal changes that remain highly supportive of the occupational markets and rental growth.”
IFRS net asset value rose by 10.7% over the period to £1.47bn, lifting NAV per share to 112.9p.
However, the share price, which was 75p at the 30 June reporting date, represented a 33.5% discount to NAV. Today’s share price is just 55.9p, following the chaos on the markets, implying a discount of more than 50%.
McCullagh said the special dividend, paid in August, was a means to return some of the “strong performance delivered” to shareholders, “allowing them all to benefit from the recent growth in net asset value that is not currently being reflected in the company’s share price”.
McCullagh added that he was “acutely aware” of the broader economic challenges and “the impact of the government’s latest fiscal announcement on the debt markets, which has created further uncertainty”.
However, he stressed that UKCM’s low gearing, currently 13.7%, coupled with a robust portfolio and strong balance sheet, should allow it to deliver income growth through the market cycle.
“We have a number of options available to us to both manage and, where appropriate, seek opportunities arising from the current environment, and are confident in the future prospects for the company.”
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