Results
The Group delivered Adjusted NAV per share of 1,233.8 pence, up 5.1% over the six months to June 2016. Adjusted earnings per share were 26.8 pence per share (£36.2 million) and basic earnings per share were 57.9 pence per share (£78.7 million).
Dividends
Today the Board is pleased to announce a quarterly interim dividend of 12.0 pence per share, on target to meet the 2016 annualised dividend of 48.0 pence per share announced at year-end.
The quarterly dividend of 12.0 pence per share will be paid on 31 August 2016 to shareholders on the register at the close of business on 19 August 2016. Over the Period, dividends of 24.0 pence per share, or £32.6 million were paid, a significant increase of 60% over the same period last year.
The Board is comfortable that the business has reached a sustainable dividend level at £65.2 million or 48 pence per share annually, which implies an attractive dividend yield of 4.9%, based on the current share price. The Board will continue to monitor the pay-out level as we look to grow portfolio cash flows.
Outlook
In light of the EU referendum result, the Board is alert to potential risks and opportunities to the investment and occupier markets in the UK and our other target markets of Ireland, Spain and Italy. We actively monitor the risk of investment market volatility feeding into the underlying fundamentals in which we operate. KWE benefits from a unique blend of debt and equity skills, strong market relationships, multi-sector approach and a wealth of experience working through market dislocations.
The business remains in a robust position benefitting from a highly diversified portfolio, both geographically and by sector, low capital commitments and ample liquidity to capitalise on potential opportunities. To date, the business is not seeing uncertainty feed into our occupier base, with a good level of leasing activity completed and underway since 23 June. Similarly, on the disposal front, the small lot sizes of our disposal pipeline proved to have good liquidity and we expect this to continue as investors hunt for yield in this all-time low interest rate environment.
