Growth in income, earnings, dividend and NAV
Net property income up £3.1 million (8.6%) to £39.0 million (six months ended 31.3.2013: £35.9 million).
EPRA earnings increased by 6.6% to £16.1 million (six months ended 31.3.2013: £15.1 million). EPRA earnings per share increased by 5.0% to 6.3p (six months ended 31.3.2013: 6.0p).
Interim dividend per share of 6.5p (six months ended 31.3.2013: 6.25p), an increase of 4.0%.
EPRA NAV increased by 5.1% over six months to £5.96; 14.0% increase for 12 months to 31.3.2014.
Net asset value return for six months ended 31.3.2014: 6.2%; 16.3% increase for 12 months to 31.3.2014.
Continued strong demand across all villages and for all uses
Vacant space available to let at 31.3.2014: 1.1% of ERV.
Commercial lettings, lease renewals and rent reviews (rental value: £11.3 million) concluded at an average 2.9% above 30 September 2013 ERV and 8.8% above ERV at 31 March 2013.
Residential lettings and renewals: £2.4 million.
Growth in rental and capital values
Portfolio capital value return: +5.4% (IPD Monthly Index: +5.4%). 3-year compound annualised growth rate: +8.8%.
Annualised current income at 31.3.2014: £90.6 million (30.9.2013: £85.9 million). Like-for-like increase over 6 months: +1.9%.
Total portfolio ERV increased by £8.0 million to £113.9 million (30.9.2013: £105.9 million). Like-for-like ERV growth over six months: 2.4%; 5.0% increase for 12 months to 31.3.2014.
Portfolio reversion has grown by £3.3 million to £23.3 million, of which acquisitions added £2.4 million.
Equivalent yield compression of twelve basis points to 4.43% in the wholly owned portfolio and twenty basis points to 4.38% in the Longmartin joint venture.
Significant investment to add to, and improve our portfolio
Acquisitions totalling £103.6 million in the period, including two major purchases: Newport Sandringham in Chinatown and Jaeger House in Carnaby.
Redevelopment and refurbishment schemes in the six months to 31 March 2014 across 115,000 sq. ft. (6.7% of wholly owned floor space). We continue to identify further schemes and opportunities to unlock value.
Financing arrangements to grow and develop the business
Share placing in March 2014 at £6.20 per share raised £153.2 million (net of expenses).
Completed restructuring of £225 million of facilities which were due to mature in 2016
- During the six months ended 31 March 2014:
- Refinanced £125 million facility with new £150 million revolving credit facility (maturity November 2018).
- Subsequent to 31 March 2014:
- Cancelled and replaced £100 million facility with new £134.75 million fixed-interest fifteen year term loan.
- Increased Group's committed debt facilities by £59.75 million to £755.75 million.
- Terminated interest rate swaps, with a notional principal of £110 million, at a cost of £29.0 million (10p per share).
Pro-formaweighted average maturity of debt: 7.6 years (30.9.2013: 5.8 years).
Pro-formacommitted unutilised facilities to fund acquisitions and improvements to our portfolio: £159.5 million.
Conservative gearing (pro-forma loan-to-value ratio: 26.3%).
Pro-forma at 31.3.2014 reflecting refinancing transactions completed after the Balance Sheet date, and for the completion of property acquisitions exchanged before 31.3.2014.
Brian Bickell, Chief Executive, commented:
"London's global appeal to businesses, visitors, and as a place to live continues to underpin its prosperity, resilience and prospects. In our West End locations, demand for accommodation continues to be healthy, resulting in steady and sustained growth in rental income and low levels of vacancy.
Activity levels across the portfolio remain high and we continue to identify schemes within our portfolio further to improve income and capital values. Our recent major acquisitions in Chinatown and Carnaby offer considerable potential although, as with many of our projects, it is inevitable, in the short term, the income they currently produce will be reduced as we progress our plans.
Improving economic sentiment and substantial public and private investment in buildings and infrastructure are bringing more business and visitors to the West End. We are confident that, with our proven long-term management strategy, our portfolio will continue to deliver sustained growth in income and capital values."
