McKay Securities plc, the only UK Real Estate Investment Trust (REIT) specialising exclusively in the London and South East office and industrial markets, headquartered in Reading, has announced full-year results for the year ended March 31, 2018.
Financial Highlights
Portfolio Highlights
Richard Grainger, chairman of McKay Securities, said: “Not only are these a striking set of results but they also act as a marker to reflect on the transformation of the business since our capital raising in 2014, leading to the recommendation of a 14.3% increase in the final dividend. Since 2014, the portfolio value has increased by 81% to £460.15m, recurring contracted rents have increased by 67%, the portfolio rental value (ERV) has increased by 76% and gearing (loan to value) has reduced from 45% to 32%. This has been achieved despite selling £68m of assets, that generated income of £3.10m pa.
"While we must remain wary of the current political environment, the markets that McKay operates in and knows so well continue to prove robust and our business is well placed to deliver further shareholder value into the future.”
Simon Perkins, chief executive of McKay Securities, added: “We are now reaping the benefit of the many asset management initiatives that we have been working on, but particularly the decision made to speculatively develop three office schemes back in 2014. Each scheme has been exceptionally well received, with two of them fully let during the period and the third at 92% occupancy.
“We have continued to release value from the significant reversion these initiatives have generated, delivering higher levels of income and capital gains. Through our strong in-house asset management team, we have secured record income from lettings, ahead of ERV, and have opportunistically sold properties significantly above book value.
“With the benefit of these gains, we took the decision to cancel the remaining legacy swap at the end of the period which, along with recent lettings will make a positive contribution to future earnings.
“Central to our success has been our strategic geographical focus on London and the South-East, whilst applying our team’s skills in development, refurbishment and active management. We have intimate local market knowledge and awareness of business occupier needs and it is this that will continue to drive our approach as we navigate the market and unlock the 22.6% (£6.10m) reversion in our portfolio.”
Buckinghamshire tech company Halma has acquired transport safety firm MK Test Systems Limited. Headquartered in…
BRiCS Development has secured an £11.55 million finance facility with Paragon Bank’s Development Finance team…
IT services and solutions company Mintivo has appointed Alex Jukes as its new Managing Director…
Bartlett Tree Experts have announced its intention to build a new arboretum and research facility…
The creation of a first-of-its-kind imaging system at the University of Surrey could help the…
Open Sight, which provides support across Hampshire to those living with or at risk of…