UKCPT foresees ‘lower returns’

UKCPT, the £1.3bn listed trust managed by Standard Life Investments, said in a company statement today that is was expecting “lower returns from property than has been the case over the past few years”. However, in its market outlook it also said: “UK real estate continues to provide an elevated yield compared to other assets” and that “the market is likely to be sentiment-driven in the short term as politics continue to evolve”. It highlighted industrial and logistics as resilient sectors while “inflationary pressures may prove to be a significant headwind for the retail sector”. The trust saw its own net asset value increase by 3% in the final quarter of 2016 to 86.2p per share and the like-for-like capital value of the portfolio rose by 2.6%. Will Fulton, lead manager of UKCPT at Standard Life Investments, said: “Last year’s positive portfolio momentum has continued into Q1 2017 with the sale of short income at 13 Great Marlborough Street in central London at a strong price. We are working to recycle this capital into higher-yielding assets.” • To send feedback, e-mail david.hatcher@estatesgazette.com or tweet @hatcherdavid or @estatesgazette