Brixton plc preliminary announcement for the year 2003

Financial highlights: net rental income + 3.6% like-for-like; total for year + 1.2% to £87.0m (2002: £86.0m), investment profit - 0.2% to £42.6m, profit before tax + 17.6% to £44.7m.

Property highlights:

  • Industrial now more than 90% of portfolio
  • Overall letting volume nearly 3 x higher than 2002
  • Overall vacancy rate <9%
  • 5.6% uplift on industrial lettings over valuers’ ERVs
  • 1.6% p.a. industrial rental growth (IPD All Fund UK Industrial Benchmark 0.3% p.a.)
  • Industrials 9.9% reversionary
  • Key transactions announced since year end:
    • - £52m acquisition of Northfields Industrial Estate, Park Royal
    • £101m acquisition of part of Trafford Park, Manchester
    • Buyout to 100% control 0.9m sq ft of investment property and 0.8m sq ft of development at Premier Greenford
    • Agreement (in principle) to restructure and increase size of Equiton fund by c.75%

Tim Wheeler, Chief Executive, commented: “Our predictions for our markets have proven well-founded and we have benefited from a significant upturn in letting activity at ever higher rents. The four major transactions since the year end demonstrate our confidence in terms of increasing our activities in our core market, providing a strategic regional presence, gearing up the development programme and expanding our key joint venture interest. In a period of likely steady economic growth we remain committed to driving shareholder value through our strategy of focus and specialisation.”

Source: Brixton

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