Daejan Holdings H1 profits rise; too early to assess Brexit impact

23rd Nov 2016 09:05

(ShareCast News) - Interim pre-tax profits at real estate developer Daejan Holdings rose to £65.1m from £58.9m after accounting for the net valuation gain on investment properties of £38.6m, up from £35.5m in 2015.The property portfolio continued to show "modest" growth in both the UK and USA, the company said."We continue to see some increase in rental income in the UK and USA. The significant reduction in the sterling/dollar exchange rate in this period has resulted in USA reported rental income increasing by £2.4m and has, on the balance sheet, produced an overall net translation gain of £20m against a £3.7m loss in 2015," the company said.Daejan added that it was still too early to "form a balanced judgement as to what lies ahead for the UK economy as a whole and the property sector in particular" in the wake of the UK's decision to leave the European Union."In the USA we now have the uncertainty of a new and largely unknown president whose impact on the USA economy and the property sector cannot be foreseen at this stage. Against this background we will continue to pursue our long term, low risk approach to creating growth in net asset value," the company said."The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the group's investment properties and financial instruments, movements in the sterling/dollar currency rate of exchange and the incidence of voids and bad debts."