A READING-based commercial property investment company says its latest results are positive, despite seeing a reduction in profits caused by the changing rental market.
McKay Securities, which is based on Greyfriars Road, saw its adjusted profit before tax down 22.4% to £4.09 million, from £5.27 million the year before, reflecting a 12.3% reduction in gross rental income to £11.18 million (£12.75 million).
The figures, released last week, relate to the trading year ending September 30, and come in the wake of the coronavirus pandemic which has seen more people work from home.
The company says that rent collection remained robust, with 99.3% of amounts due for the year to March 2021 received or agreed, and 96.4% of rent for the year-to-date (three quarters) already received.
And it says that it continues to deliver high tenant retention levels of 73.9% at lease break or expiry, while 13 open-market lettings were completed in the same period.
IT made a post-period acquisition of Evergreen Studios, in Richmond-on-Thames for £14.75 million, which has delivered an immediate income yield of 5.8%.
Simon Perkins, McKay’s chief executive, said: “Our consistent focus on our core office, industrial and logistics sectors across the South East and London, combined with the intensive in-house management of our portfolio, can be credited for the delivery of another positive set of results.
“The first half of the period under review saw the UK confined to a Government lockdown, so it has been encouraging to witness improving confidence as restrictions have eased and the re-emergence of the office market with a return to the workplace.”
He added: “Both occupier demand and market lettings continue to strengthen, and our portfolio is positively positioned thanks to our ongoing investment programme.
“The pace of economic recovery and market sentiment will dictate the outlook for the remainder of the year, but we can look forward with the assurance of our tested resilience and the benefit of substantial portfolio potential, as well as the resources to respond as opportunities present themselves.”
