DJ McKay Securities PLC Final Results
McKay Securities PLC, the Real Estate Investment Trust (REIT) specialising in South East and London office and industrial property, today announces its Full Year results for the year ended 31 March 2016.
Financial Highlights — Adjusted profit before tax up 37.2% to GBP7.94 million (31 March 2015: GBP5.79 million)
— IFRS profit before tax of GBP53.16 million (31 March 2015: GBP33.28 million)
— NAV (EPRA) per share up 11.5% to 301 pence (31 March 2015: 270 pence)
— NNNAV (EPRA) per share up 20.4% to 277 pence (31 March 2015: 233 pence)
— Loan to Value ratio of 28.9% (31 March 2015: 25.9%)
— GBP175 million debt refinancing completed, including GBP35 million reduction in notional value of interest rate swaps
— Final dividend up 1.7% to 6.1 pence per share (2015: 6.0 pence per share)
— Total dividend for the year up to 8.8 pence (2015 8.7 pence)
Portfolio Highlights
— Portfolio value increased by GBP48.41 million to GBP401.17 million
— 9.7% (GBP35.31 million) valuation surplus (like for like)
— 5 properties sold during the year, realising a net surplus of 37.1%
— Gross rental income up 14.4% (GBP2.54 million) to GBP20.16 million
— 8.5% growth in portfolio ERV (like for like)
— Portfolio ERV increase of 87.1% over 3 years to GBP31.44 million pa
— Potential portfolio reversion of 49%
— Good progress on development projects in Reading, Redhill and Lombard Street, EC3
David Thomas, Chairman of McKay Securities PLC, said:
“This has been a year of major progress for the Group towards our objective of being able to deliver attractive and sustainable returns to shareholders over the long term, as a result of expanding the business and focusing entirely on the office and industrial markets of London and the South East.
Our major investment in property acquisitions, refurbishments and development projects over the last few years increased our scale to coincide with a time of growth in rental and capital values across our markets. By positioning our investment assets to take best advantage of these positive market trends, we have generated significant growth in value and earnings this year from an improved and more resilient portfolio. In addition, progress with the development programme has enhanced the prospects of the release of further gains over the years ahead. Both of these initiatives improve the chances of crystallising the full rental potential of the portfolio.
“It has been a privilege to serve as Chairman for the last nine years, and I am pleased that Richard Grainger, who joined the Board in May 2014, will be succeeding me as Chairman at the conclusion of this year's AGM in July. I would like to convey my thanks to all the team at McKay and to our shareholders for their support over the years, and wish the Group well for the future.”
Date: 24(th) May 2016