In its interim results, F&C Commercial Property Trust announced a period of outperformance, driven by the completion of successful asset management initiatives and yield compression in the industrial and logistics sector.
The Company delivered a net asset value total return of 5.1% for the six months to 30 June 2017. The portfolio provided an ungeared total return of 5.0%, which compares to a total return of 4.6 per cent from the Company’s benchmark, the MSCI Investment Property Databank All Quarterly and Monthly Valued Funds.
The share price total return for the period was 8.8%. As at 30 June 2017, the share price was 145.3p per share, a premium of 4.2% on the June NAV. This compares to a premium at the 2016 December year-end of 0.7%.
Monthly dividends of 0.5p per share were paid during the period, maintaining the annual dividend rate of 6.0p per share. The annualised dividend yield at the end of the period was 4.1%. Barring unforeseen circumstances, it is the Board’s intention that the dividend will continue to be paid monthly at the same rate.
The Company’s industrial and logistics portfolio delivered the highest total returns, at 9.3%, compared with a benchmark return of 8.1%. Included within this return was the completion of a lease renewal to Mothercare at Plot E4, DIRFT Daventry, resulting in a new 10 year lease, a 5% increase in rent and the external valuation increasing by 20%.
The overall total return from the Company’s retail properties during the period was 5.0% compared with the benchmark return of 3.3%. St. Christopher’s Place Estate performed strongly over the period, producing a total return of 7.7%. This was driven mainly by a number of new lettings on the Estate and an increase in the overall estimated rental value.