Local Shopping NAV falls 1.4%

2nd Dec 2010 07:22

Local shop portfolio owner Local Shopping said trading conditions remain tough for its tenants as it reported a 1.4% drop in net asset value to 70p or £57.6m.Chairman Grahame Whateley commented, "Despite challenging trading conditions, our business model, with its diversified tenant base, continues to perform well, with stable occupancy and a resilient lettings market.For the year ended 30 September 2010 the market value of its portfolio increased 10.6% to £192.9m. Values were up 3.5% on a like-for-like basis over the full year.A dividend for the second half of 1.9p has been recommended, up from 1.8p before. Total net debt stands at £131.7m."In the investment market, the potential for further near term yield compression looks limited. It therefore seems likely that rental growth and added value via active asset management will be the drivers of any valuation gains," Whateley added. "We continue to believe that the next few years will provide opportunities to generate considerable returns from investing in distressed situations."