Results
Statutory pre-tax profit was £29.6m, which included a revaluation surplus of £13.0m (2016: £25.2m, including a revaluation surplus of £10.2m).
The underlying pre-tax profit, which excludes revaluation movements, profit on the sale of investment and trading properties and early repayment costs, increased by 6.0% during the year to £15.9m (2016: £15.0m). EPRA adjusted earnings per ordinary share was 4.9% higher at 25.05p (2016: 23.88p).
EPRA net asset value per ordinary share increased by 5.6% during the year from 446p to 471p. Basic net asset value per share increased by 26p to 469p.
Shareholders' funds rose to £296.7m (2016: £280.6m), while total net borrowings amounted to £78.5m (2016: £71.2m). Net debt to equity gearing was 26% and loan to value (“LTV”) 20%.
Dividend
The Board is recommending the payment of dividends amounting to 12.24p per ordinary share, an increase of 3% over last year (2016: 11.88p), making a total for the year of 22.12p (2016: 21.47p).
A quarterly dividend of 5.15p per ordinary share is to be paid on 16 October 2017 to Shareholders on the register at the close of business on 15 September 2017 and a final dividend of 7.09p per ordinary share, if approved by shareholders at the AGM, will be paid on 15 January 2018 to Shareholders on the register at the close of business on 15 December 2017.
Both dividends will be paid as Property Income Distributions (PIDs).
Finance
We renewed our £64m banking facilities with HSBC during the first half-year for a further 5 years to 2021 on a 30% lower margin.
We also repaid a £20m, 5.23% fixed rate loan we had with Lloyds Bank, which was due to expire in 2022, incurring an early debt repayment cost of £1.2m and took out a new £40m term loan facility with Scottish Widows for a period of 15 years, fixed at 3.5%.
As such, our weighted average cost of debt has reduced to 3.1% (30 June 2016: 4.1%) or 3.6% on drawn amounts (2016: 4.4%) and our weighted average term remaining on debt has increased to 7.7 years (30 June 2016: 5.5 years).
The total net borrowings at 30 June 2017 was £78.5m (30 June 2016: £71.2m), while undrawn banking facilities were £40.5m (30 June 2016: £27.0m).
Net debt to equity gearing at 30 June 2017 was 26% (30 June 2016: 25%) and LTV was 20% (30 June 2016: 20%).
Outlook
Since our year end, the number of tenant enquiries for our vacant properties has continued in a similar manner as before and we are not expecting conditions to change much over the next 6 months.
Should it be necessary, we are extremely well positioned to adapt our short-term strategy in order to capitalise on any uncertainty and opportunities that may occur and remain confident of our ability to continue to deliver long term performance for our shareholders.