Arbdn’s UK Commercial Property REIT has bucked the trend with capital values rising over the quarter, albeit by just 0.9%.
The REIT’s portfolio is now valued at £1.32bn, while the MSCI UK Monthly Property Index showed capital values falling by -1.2% over the quarter.
Ken McCullagh, chair of UKCM, said: “After a re-rating of the UK commercial real estate sector in the final quarter of last year, as a result of a dramatic increase in interest rates as governments tried to stem inflation, there has been a period of stabilisation in the first quarter of 2023. During the period, the company has continued its asset management initiatives to drive earnings. These factors have led to a marginal increase in the value of UK Commercial Property REIT’s high-quality, diversified portfolio, which is also reflected in the small increase to NAV.”
