UKCM FY EPRA earnings grow despite NAV decline

5th Apr 2023 09:10

(Sharecast News) - Real estate investment trust UK Commercial Property REIT posted increased EPRA earnings in 2022 despite seeing net asset values decline.

UK Commercial Property said EPRA earnings per share had increased 19% to 3.15p, leading it to up dividends by 11% to 3.25p.

The FTSE 250-listed group's improved earnings and hiked dividend comes despite net asset value declining 18.1% to £1.0bn, principally due to market yield expansion following increased bank interest rates/cost of debt and macro-economic position.

UKCM also highlighted that it continues to benefit from relatively low and prudent gearing at 20% group loan-to-value and a current blended interest cost of 3.68% per annum, of which 68% was at a fixed rate.

Occupancy rates came to 98.0%, broadly flat from the prior year's 97.9% and comparing "favourably" to the MSCI benchmark occupancy rate of 92.0%.

"UK Commercial Property REIT has delivered robust earnings growth in the year from its high quality, diversified portfolio, which is weighted towards sectors that benefit from strong underlying structural and social drivers, and from its proactive approach to asset management. It also gives me confidence that, at an operational level, and because of the company's strong and lowly geared balance sheet, we are well placed to weather the current economic headwinds in this higher interest rate environment," said chairman Andrew Wilson.

As of 0910 BST, UKCM shares were up 0.59% at 51.40p.

Reporting by Iain Gilbert at Sharecast.com