UK Commercial Property REIT returns dive
UK Commercial Property REIT reported a NAV total return of 1.9% for the first half of the year, down from 12.2% last year.
The REIT’s property portfolio generated a total return of 2.1% in the six month period ended 30 June.
The slump in returns was driven by a decline in its retail returns of -2.4%. This was offset by returns of 5.2% for its industrial assets, and 3% for its office assets.
UK Commercial Property REIT reported a NAV total return of 1.9% for the first half of the year, down from 12.2% last year.
The REIT’s property portfolio generated a total return of 2.1% in the six month period ended 30 June.
The slump in returns was driven by a decline in its retail returns of -2.4%. This was offset by returns of 5.2% for its industrial assets, and 3% for its office assets.
While performance paled in comparison with last year, the REIT achieved the target benchmark of 1.2%.
UKCM chair Andrew Wilson said: “The company was not immune to the ongoing travails of the retail market, with the use of company voluntary arrangements, the impact of online retail on high street performance and the increasingly negative sentiment to this sector regardless of individual property fundamentals.”
Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: “Our portfolio’s strategic weighting towards industrial is now up to 48%, and we continue to reduce our exposure to the retail sector.
“Following the change in our investment policy earlier this year, we are now looking to explore attractive investment opportunities in alternative sectors, while upholding our ability to recycle capital into high quality assets that are well positioned to deliver growing and sustainable income.”
UKCM reported an NAV of £1.2bn and contracted annual rent of £71.3m.
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