Berkeley interims lower as it plans to increase cash return to shareholders

4th Dec 2015 07:13

(ShareCast News) - Interim pre-tax profits at property group Berkeley fell to £293.3m from £304.9m after sales of its ground rent portfolio fell to £51m of profit from £85.1. The firm also said it was increasing its cash return to shareholders.Adjusted interim pre-tax profits rose 10.2% to £242.3m, with net asset value per share up 7.5% to 1,289p.The group said it is well-placed to meet its targets for the next three years and to meet its enhanced longer term commitment to return a further £12 per share to shareholders by 2021, "given in particular the visibility afforded to it by its land bank and cash due on forward sales, and to provide a successful and sustainable business thereafter"."We remain on target to deliver pre-tax profits in the region of £2bn over the three year period comprising 2015/16, 2016/17 and 2017/18. The scale of the key regeneration schemes from which we expect to generate these earnings makes the delivery of profit in specific periods sensitive to timing and we continue to prioritise quality ahead of individual period financial targets," the company said.Berkeley said it planned to increase its cash return target to shareholders to 1630p a share by 2021, with the remaining 1200p a share to be paid out in annual dividends of 200p a share over the next six years.It has so far returned 434p a share to shareholders of its planned 1300p return plan over 10 years from 2011.Berkeley said the first half of the year had seen a "stable operating environment, supported by the decisive General Election result in May 2015, in which normal transaction levels experienced are consistent with the equivalent period last year"."Sales price increases have continued in line with those reported in the wider market and are generally matched by cost increases.Cash due on forward sales over the next three years increased to £3bn from £2.9bn.