McKay Securities gets NAV uplift

11th Feb 2011 08:11

Real estate investment trust McKay Securities has received an uplift in net asset value per share from favourable movements in long term swap rates.The group has restructured its financial hedging instruments to reduce the notional sum by £50m to £105m, at a cost of £5.93m. The group said the move realigns the interest rate protection with the reduced level of group debt following the recent downturn in property values. As a result of the restructuring any further downward movements in the market value of the remaining instruments will have a reduced impact on the balance sheet.Following the restructuring, and taking into account movements in long term swap rates, the negative mark to market value of the retained instruments of £15.94m compares with £36.67m as at 30th September 2010. After taking into account the cost of restructuring this equates to an increase of 32 pence per share.Net debt as at 9 February stood at £97.7m, up from £90.2m at the end of September 2010.In the final quarter of 2010 the group collected in excess of 90% of contracted rents at the December 2010 quarter day, and tenants paying rent on a monthly basis represent less than 5% of rents demanded.The group void rate increased over the period from 10.3% to 11.2%.