UK Commercial Property Trust has increased its adjusted NAV per share by 4.1% to 75.7p in the year to 31 December.
The firm’s property portfolio in 2010 was valued at £898.8m, up 7.9% from £710.5m the previous year. The total return for the property portfolio was 13.2%, compared with 11.3% in 2009.
Office holdings were the portfolio’s strongest performer with an overall return of 13.8%, which was driven by strong capital and rental growth in central London. Regional offices also provided a strong return, delivering 11.7% over the year.
Retail assets were the next best performer providing a total return of 13.7%, driven by a strong performance from both central London and regional high streets, which delivered returns of 17.8% and 17.4%, respectively.
Net rental income also increased 23.4% to £60.2m, compared with £48.8m in 2009.
The void rate in the portfolio, excluding pre-lets, as a percentage of income was 3.62% at 31 December 2010, compared with 2.45% in 2009.
During the year the firm acquired Darwin, Pride Hill and Riverside Mall shopping centres in Shrewsbury. The three shopping centres were purchased for £63.6m, producing a total rental income of £5m a year, which represented an initial yield of 7%.
Junction 27 Retail Park in Leeds was also purchased for £59.6m, producing annualised income of £3.7m, which represented a net initial yield of 6.15%.
The UK Commercial Property Trust also acquired St. George’s Retail Park in Leicester in February 2011 for £51m.
In total last year 36 new lettings were completed across the portfolio producing additional annualised rent of £1.15m, with an average lease length of eight years two months.
Chris Hill, chairman of UKCPT, said: “Having performed well throughout 2010 and taken advantage of market conditions to make a number of high quality acquisitions, UKCPT is well-placed for the future. The company’s strong cash position and unutilised debt facilities mean that we will be able to react to similar opportunities as they arise, while at the same time we can continue to create value through the asset management of our existing properties and the four retail properties we acquired during 2010 in particular.”
Robert Boag, senior investment director at Ignis Asset Mangement, UKCPT’s asset manager, added: “The company may look to achieve opportunistic sales due to the growing desire for prime property and its regional office holdings could be a possible starting point in this respect, given the demand for good quality, well let income producing assets such as ours. In terms of acquisitions, stock selection remains vital and we will look for good quality properties where we can clearly identify opportunities to take advantage of our asset management capabilities.”