Abrdn’s UK Commercial Property REIT has lost 7% of its value as its net asset value fell by 10.1% in the last quarter.
UKCM chair Ken McCullagh said: “Since we last reported, and as widely anticipated, the economic environment has become more challenging. The rise in interest rates has resulted in weakening yields, which have, in turn, put downwards pressure on valuations.”
The REIT’s net assets fell to £1.3bn from £1.47bn in Q2. Its portfolio valuation was £1.71bn in June, but is now £1.58bn.
McCullagh added: “Our assets remain well placed to deliver income growth and security… I take further comfort from the fact that our balance sheet remains lowly levered, with over three-quarters of our debt at fixed rates and continues to be comfortably within the banking covenants, and undrawn debt that provides us with flexibility.”
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