Results
Unusually high level of development and refurbishment activity has tempered growth in the short term in net property income and profit before tax; ERV of all schemes currently underway £6.2 million
Annualised current income at 31.3.2013: £82.8 million (30.9.2012: £80.9 million)
Portfolio capital value return over six months ended 31.3.2013: +3.4% (IPD Monthly Index: -1.7%). (Year to 31.3.2013: Shaftesbury +7.5%; IPD Monthly Index -4.0%)
Net asset value return for six months ended 31.3.2013: 6.2% (Year to 31.3.2013: 13.8%)
Portfolio activity
Continuing good demand across all villages and for all uses:
- Low level of vacancy - available commercial space 2.8% of ERV of which 1.1% was under offer
- Lettings and lease renewals of £5.5 million in period - average 3.1% above ERV
- Like-for-like ERV growth of 2.0% during six month period (growth 4.3% over year to 31.3.2013)
- Portfolio reversion now stands at £19.7 million, increased by 3.7% over the period
Schemes progressing well:
- Lasenby House scheme completed in May; two new shops under offer and considerable interest in remaining unit
- Redevelopment of buildings on south side of Foubert's Place and Kingly Street adding 18,000 sq. ft. now on site. Completion by end 2014
- All schemes letting quickly - exceptional demand for new restaurant space
Continuing to identify valuable new schemes within existing portfolio
Acquisitions totalling £12.4 million in period include two restaurants in Covent Garden and a shop in Soho. Limited availability of potential acquisitions which meet our strict criteria.
Finance
Committed unutilised bank facilities at 31.3.2013: £120.6 million
Conservative gearing (Loan-to-value ratio 31.3.2013: 30.1%)
Earliest facility maturities 2016
Brian Bickell, Chief Executive, commented:
"London continues to benefit from its unique features and unrivalled variety of attractions which draw visitors, businesses and those who wish to live here. Its status as a global destination brings world-wide interest, leading to prosperity and stability which is not reliant on the wider UK economy.
As we anticipated, growth in our rental income is tempered this year as a result of the unusually high level of refurbishment and development activity across our portfolio. With sustained good demand across all our uses, we expect these valuable projects will let well on completion and make an important contribution to our revenue growth. We continue to identify and progress other valuable schemes within our portfolio.
With a strong and resilient local economy, and our long established and proven management strategies, we are confident in the prospects for sustained income and capital growth from our unique and centrally-located portfolio in the years ahead. "
