Mixed-use property regeneration specialist U+I (UAI), formerly Development Securities, has the distinction of being the first real estate company to report figures that included the effects of the referendum. Predictably, the ensuing uncertainty had valuers reaching for the red pen, and adjusted net asset value (NAV) per share fell from 291p in February to 272p.
However, trading and development gains of £11.5m were higher than expected, and a further £11m was secured after the half-year end, with a medium-term target of achieving annual gains in excess of £50m. Over £1.5bn of gross development value was added to the development pipeline.
As well as winning new regeneration projects, U+I also secured a £200m joint venture to secure income-generating assets in the capital, and further specialist platforms could be created to cover 'build to rent' and office refurbishment, where U+I is paid a fee.
Gearing was down from 44 per cent at the start of the financial year in February to 38 per cent, while lower recurring overheads and higher net management fees are expected to generate £2m in FY2018.
| U+I (UAI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 159.75p | MARKET VALUE: | £200m | |
| TOUCH: | 158-159.75p | 12-MONTH HIGH: | 247p | LOW: 140p |
| DIVIDEND YIELD: | 3.7% | DEVELOPMENT PROPERTIES: | £213m | |
| DISCOUNT TO NAV: | 41% | NET DEBT: | 38% | |
| INVESTMENT PROPERTIES: | £217m* | |||
| Half-year to 31 Aug | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 274 | 1.4 | 1.2 | 2.4 |
| 2016 | 272 | -11.7 | -9.9 | 2.4 |
| % change | -1 | - | - | - |
Ex-div: 27 Oct Payment: 25 Nov *Includes investments held via associates and joint ventures | ||||
