Arbdn’s UK Commercial Property REIT has bucked the trend with capital values rising over the quarter, albeit by just 0.9%.
The REIT’s portfolio is now valued at £1.32bn, while the MSCI UK Monthly Property Index showed capital values falling by -1.2% over the quarter.
Ken McCullagh, chair of UKCM, said: “After a re-rating of the UK commercial real estate sector in the final quarter of last year, as a result of a dramatic increase in interest rates as governments tried to stem inflation, there has been a period of stabilisation in the first quarter of 2023. During the period, the company has continued its asset management initiatives to drive earnings. These factors have led to a marginal increase in the value of UK Commercial Property REIT’s high-quality, diversified portfolio, which is also reflected in the small increase to NAV.”
NAV rose over the quarter by 1.1% to 80.6p, and a total NAV return for the quarter of 2.2%, up from Q4’s 20.8% loss.
McCullagh added: “The company’s balance sheet remains robust with low leverage and ample resources to complete our development pipeline. While we remain aware of the uncertainty that still prevails in the market, this more positive broader outlook and the company’s healthy first quarter performance gives us further confidence about the future prospects for the company.”
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