UK Commercial Property Reit Limited (UKCM)

Sector:

Real Estate

Index:

FTSE 250

70.10p
   
  • Change Today:
    -1.00p
  • 52 Week High: 91.00
  • 52 Week Low: 49.00
  • Currency: UK Pounds
  • Shares Issued: 1,299.41m
  • Volume: 2,706,305
  • Market Cap: £910.89m
  • RiskGrade: 248

UK Commercial Property post positive NAV return amid turbulent markets

By Josh White

Date: Tuesday 02 Jun 2020

LONDON (ShareCast) - (Sharecast News) - UK Commercial Property REIT (UKCM) reported a year-end net asset value of £1.2bn in its final results on Tuesday, representing a positive net asset value total return of 0.1% for the year.
The FTSE 250 company said its EPRA earnings per share grew 15% in the year ended 31 December to 3.5p, driven by acquisitions made in 2018 and successful asset management in 2019.

Total shareholder return was 11.3%, which the board said underlined the "continued attractiveness" of the large, diversified real estate investment trust, with a "low risk" profile.

The firm's net gearing stood at 14.7%, up slightly from the 14.6% ir reported at the end of 2018, although the directors noted that it remained "one of the lowest" in the company's peer group and the wider REIT sector, with successful debt refinancing in 2019 increasing its flexibility and maturity of debt, while also reducing cost.

A total of £130m was available to UKCM for investment opportunities as at 31 December which, when utilised, would reportedly further boost earnings.

Looking at its portfolio, UKCM reported a total return of 1.4% for the year, down from 5.9% year-on-year and short of the MSCI benchmark return of 1.8%, as real estate returns slowed against what the board described as a background of continued political uncertainty.

Over three years, the portfolio returned 6.4% per annum, against the benchmark return of 6.3%.

It reported an occupancy rate of 92.1%, down slightly from 93.1% year-on-year, and also just short of the sector benchmark of 92.8%, with UKCM noting that more than half of its remaining vacancy was in the Industrial sector.

The company said 51% of its portfolio was now invested in the "favoured" Industrial sector, compared to 21% in the retail sector following the sale of its last remaining shopping centre.

On the environmental front, UKCM said it achieved a 9% reduction in like-for-like greenhouse gas emissions in 2019.

"My first full-year results announcement as chair of UKCM comes against the backdrop of an unprecedented global pandemic in Covid-19," said chair Ken McCullagh.

"As well as the tragic human cost of this virus, the economic implications have been profound and will impact all sectors of the economy for the foreseeable future, with the hope that significant government support and stimulus packages will see a return to growth.

"Delayed by the Covid-19 outbreak, these results reflect the ongoing market uncertainty and set out how UKCM will deal with current and future challenges it poses."

McCullagh said the company delivered "strong" earnings growth in 2019, primarily as a result of a number of successful asset management initiatives during the year under review and the benefit of receiving a full year of income from acquisitions it secured throughout 2018.

"ESG continues to be an important focus, so we are also pleased to report a 9% reduction in like-for-like greenhouse gas emissions across our portfolio.

"Looking ahead, the current crisis has resulted in significant pressure on the company's revenue account with rent collections for the second quarter standing at 68% as at 24 April.

"However, we believe that UKCM continues to have strong fundamentals in place both at a property and corporate level that will help the company navigate these unique circumstances, giving us the confidence to have announced in April that we intend to continue paying a dividend to shareholders."

At 1003 BST, shares in UK Commercial Property REIT were up 0.47% at 59.98p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

UKCM Market Data

Currency UK Pounds
Share Price 70.10p
Change Today -1.00p
% Change -1.41 %
52 Week High 91.00
52 Week Low 49.00
Volume 2,706,305
Shares Issued 1,299.41m
Market Cap £910.89m
RiskGrade 248

UKCM Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
23.63% below the market average23.63% below the market average23.63% below the market average23.63% below the market average23.63% below the market average
62.96% below the sector average62.96% below the sector average62.96% below the sector average62.96% below the sector average62.96% below the sector average
Price Trend
23.79% below the market average23.79% below the market average23.79% below the market average23.79% below the market average23.79% below the market average
1.82% above the sector average1.82% above the sector average1.82% above the sector average1.82% above the sector average1.82% above the sector average
Income
10.60% above the market average10.60% above the market average10.60% above the market average10.60% above the market average10.60% above the market average
19.05% below the sector average19.05% below the sector average19.05% below the sector average19.05% below the sector average19.05% below the sector average
Growth
42.53% below the market average42.53% below the market average42.53% below the market average42.53% below the market average42.53% below the market average
18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average

UKCM Dividends

  Latest Previous
  3rd Interim 2nd Interim
Ex-Div 12-Nov-20 13-Aug-20
Paid 30-Nov-20 28-Aug-20
Amount 0.46p 0.46p

Trades for 27-Nov-2020

Time Volume / Share Price
16:36 8,817 @ 70.10p
16:35 1,266,877 @ 70.10p
16:29 524 @ 68.60p
16:29 630 @ 68.60p
16:29 90 @ 68.50p

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