Reading: McKay Securities reports strong performance with record rentals

McKay Securities plc, the only UK real estate investment trust (REIT) specialising exclusively in the London and South East office and industrial markets, has announced full-year results for the year ended March 31, 2017 - showing pre-tax profits up 8.3%

Highlights include:

• Adjusted profit before tax up 8.3% to £8.6 million (prior year: £7.94m)
• Gross rental income up 3.1% to a historic high of £20.79m
• Loan to Value ratio of 31.6%
• Final dividend up 3.3% to 6.3p per share
• Total dividend for the year up 2.3% to 9p
• Overall increase in property portfolio value of 7.2% to a record £429.92m
• Good progress in contracted rental income, up 11% to £23.42m pa, following 35 lettings over the period, 26 of which were new to the open market

Richard Grainger, chairman of McKay Securities, said: “In my first year as chairman, I am pleased to be able to report another positive set of results for the Group, which continues to benefit from its exclusive focus on London and the South East. Despite market volatility surrounding the EU referendum, these results show the careful and effective deployment of capital following funds raised in 2014, delivering outperformance for the Group.”

Simon Perkins, chief executive of McKay Securities, added: “Our refurbishment programme and proactive asset management activities have continued to release the substantial portfolio potential that we have built up, with rental and capital growth out-performing the market, while two of our three development projects reached completion during the period and our third scheme remains on track for delivery next year. 

“With both rental income and the portfolio value at a historic high for the Group, we’re pleased to be in a position to deliver increases in shareholders’ funds, profits and dividends at this Full Year. The increase in adjusted profit before tax, our measure of recurring earnings, enabled us to achieve our ambitious target of a covered dividend within three years of doubling the share capital in 2014. Looking forward, we will continue pursuing our strategy of building a resilient portfolio in our core markets and crystallising the portfolio reversion to deliver attractive returns for our investors over the long term.”