McKay Securities reports slight uplift in NAV

McKay Securities has reported a slight increase in net asset value (NAV) of 0.9% in full year results.

The company, which owns office, industrial and logistics property in the South East of England, posted an EPRA NAV of 329p per share at 31 March 2020 (March 2019: 326p).

Its portfolio was valued at £510m, up from £482.7m last year and marginally up year-on-year. Gross rental income increased 16.4% to £25.16m.

Adjusted profit before tax was up 5% to £9.73m, while adjusted basic earnings was up 4.8% to 10.32p per share.

The company has reduced its final dividend by 40.5% to maintain a higher cash position in the current climate. It declared a final dividend of 4.4p (March 2019: 7.4p), bringing its total dividend for the year to 7.2p (2019: 10.2p).

McKay has collected 73% of rent due for the current quarter (to the end of June), which it said increases to 95% with monthly rent collections and deferment plans included.

During the year, McKay agreed the sale of City of London office 30 Lombard Street for £76.5m, which is due to complete in Q3 2020.

When the deal goes through, the group’s loan to value (LTV) will reduce from 37.6% at present to 28.0%.

Th group’s share price was down 5.5% during early trading following the results announcement.

MCKS : McKay Securities reports slight uplift in NAV

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