Mapeley, one of the UK’s main property outsourcing and investment companies, has reported a pre-tax loss of £18.6m in its latest results.
Mapeley said that the figures, for the third quarter to 30 September, were ‘in line with expectations’, and the fall in profits was due to a loss in property values in line with market trends.
Pretax profit for the same period in 2006 was £42m.
However, chief executive Jamie Hopkins pointed out that the company’s key measure of operating performance, Funds From Operations (FFO), had gone up by 16.7% to £42m in the period.
Dividends declared were also up by 14.6% to £1.41 per share.
Hopkins said that Mapeley was a ‘rare animal’ in the property sector because its model was based around the provision of services and the operating business, rather than just assets.
He added: ‘The embedded organic growth in our business continues to drive returns and our dividend remains underpinned by strong cash flows.
‘94% of our income is derived from government and investment grade tenants, we have a 10-year average lease length across the portfolios and our occupancy rate remains stable at 96%.’
Mapeley owns and manages a commercial property portfolio of over £2.2bn, covering around 25.8m sq ft. Hopkins said it was keen to grow further and would continue to be an ‘active investor’.