NAV holds steady at UK Commercial

3rd May 2011 08:25

UK Commercial Property Trust, the largest UK focused commercial property trust, saw no change in its net asset value (NAV) per share in the first quarter of 2011.NAV per share at the end of March was unchanged from the end-2011 value of 77.0p The company's portfolio was valued at £955.1m, a 0.70% increase from the 31 December 2010 valuation on a like-for-like basis, having benefited from a 1.12% capital value uplift in the company`s retail holdings. The company highlighted the performances from Retail Warehouses and West End with capital value uplifts of 1.47% and 2.32% respectively.Adjusted annualised net rental income as at 31 March 2011 was £64.2m, compared to £61.5m on 31 December 2010, boosted by retail acquisitions and ongoing asset management.While investment volumes are in line with the same period last year and there are some signs of increased flows of investment stock from the banks and administrators, there is still a lack of prime product for sale, the company said, adding that some observers attributed the dearth to the late and extended Easter break.Investor appetite for prime property remains strong, particularly from the institutions and real estate investment trusts, and should ensure that prime yields remain stable, the company believes. However a cautious attitude surrounds secondary property, particularly in the retail sector, given the challenges that still exist in the retail occupational market.The company intends to declare a first interim dividend of the year of 1.3125p."We have benefited from the prime nature of the portfolio and its bias towards the South East region of the UK and the retail sector, which have outperformed during this period," said Christopher Hill, chairman of the trust. "We completed the purchase of the St. Georges Retail Park in Leicester in this quarter, and will continue to consider further acquisitions of high quality assets where we believe we can apply our specialist asset management skills to grow value," Hill added. ---jh