subject: Uk Commercial Property Trust Reports A Solid Fy 2011 [print this page] The portfolio is valued at 1.052 billion, up 9% on the previous year thanks largely to acquisitions, but NAV per share has fallen from 77p to 75.5p.
UKCPT is distinguished by low borrowings compared to its peers. It was late to the party, and now obtaining debt finance is far more difficult than in recent years. In 2008 it obtained a 7 year 80 million facility from Lloyds, which is fully utilised. Last year it obtained 150 million also over 7 years from Barclays, of which 60 million was drawn at the year end. This increased gearing from 4.4% to 13.3%. Subsequently it used 60 million to fund its industrial business property purchase in February and now has 30 million available and cash of 38 million.
Chris Hill, Chairman of UKCPT, said: "During the year, the Company continued to make solid progress across its operations, including making significant, accretive acquisitions."
"At a portfolio level, UKCPT continues to perform well, with low voids, a very high rental collection rate and a strong tenant base. The nature and diversity of the portfolio, along with the current resources the Company has at its disposal, should allow us to identify and take advantage of asset management opportunities and grow income in order to maintain, and potentially enhance, dividend cover over the medium term."
Kingfisher Plc, world number 3 DIY retailer and owner of B&Q and Screwfix in the UK, today reported its global results for 2011, in which the UK and Ireland produced a more or less flat result, with sales just 5 million up on 2010 at 4.338 billion. Globally, sales were up 3.6% to 10.831 billion. Pre-tax profits improved 16%, however, due to operating efficiencies, from 671 million in 2010 to 797 million.
UK & Ireland retail profits were up 11.6% to 271 million. B&Q retail profit margin continued to improve, benefiting from margin and cost initiatives.
At B&Q sales were down slightly to 3.8 billion and down 1.8% on a LFL basis, while Screwfix grew total sales by 8.2% (+1.9% LFL) to 518 million. At B&Q sales of outdoor products were up 1% whilst indoor products were down 3%.
Kingfisher owns a substantial business property portfolio. Whilst also leasing stores, its book value is 2.8 billion, but an independent market valuation has indicated a current value of 3.5 billion. During H1 Kingfisher paid 24 million to buy up to 31 leasehold properties from the administrator of Focus DIY. Following regulatory approval and discussions with landlords, 27 reopened in the B&Q format in H2 for a capital cost of around 15 million and are trading well. An additional 11 million exceptional charge was also incurred integrating the stores before they opened.
Kingfisher plc is Europe's leading home improvement retail group, with 955 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dp't and Screwfix. Kingfisher also has a 50% joint venture business in Turkey with Ko Group, and a 21% interest in, and strategic alliance with Hornbach, Germany's leading large format DIY retailer.
After running with net debt of 1.6 billion a few years ago Kingfisher became debt free last year but has lost 45 million on currency movements and other cash flow movements to finish this year with net debt of 88 million.
Shares in Kingfisher closed last night at 300p which valued the firm at 7.107 billion.
Bellway Plc, the UK number 4 housebuilder, reported today that for H1, ended January 31st, it has improved both sales volume and margin to produce a pre-tax profit up 69% to 40.6 million.
The firm sold 2,455 homes in the six months ended 31 January 2012, an increase of 5.3% compared with the same period last year (2,332). The average selling price of those homes has risen by 8.5% to 182,753 (2011 - 168,428), primarily derived from continuing changes in geographical and product mix. Other revenue for the period was 9.9 million (2011 - 15.1 million) resulting in the Group generating total revenue of 458.6 million (2011 - 407.9 million), an increase of 12.4% compared with the previous year.
The operating margin continued its upward trend, principally due to the greater proportion of residential property being built on cheaper land acquired since the economic downturn, thereby producing an improvement of 320 basis points to 10.1%.
Bellway has a strong balance sheet and has continued to buy land, like its peers, spending 105 million to agree terms on 4600 plots. Net asset value per share has grown from 888p at the start of this FY to 902p. The firm has net debt of just 11.6 million, but has a 300 million credit line to continue its land purchases.
Bellway shares closed last night at 859.5p, well below NAV which values the firm at 1.042 billion.
by: UkBiz
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