F&C Commercial Property Trust boosted though acquisitions

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F&C Commercial Property Trust (F&C CMT) reported a boom in profits, with the company’s net asset value (NAV) total return for the past six months at 12.2 % as the company completed purchases totaling £124m (€155.8m) over the past six months.

The company’s share pricehad a total return of 1.9 % while it reported a dividend yield of 5.0% over the past six months. Among others, the company completed the purchase of four office blocks in Kingswells, Aberdeen totaling £95.4m (€119.8).The total return from the Company’s retail properties during the period was 8.4 per cent compared with a benchmark return of 7.3 per cent.

Richard Kirkby, fund manager for the UK commercial property sector commented on the outlook: “While the total return of the past six months is unlikely to be sustained for the remainder of the year, the gradual elimination of excess capacity in the UK, a broadening of rental growth and continued strength in investor demand are predicted to lead to a period of positive total returns in the high single digits.”

F&C CMT 230 million bonds and £30 million bank loan are due to mature in June 2015. According to the company, the Board has been considering various options for refinancing this debt, either on or before its maturity, with the expectation to refinance successfully.

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