As the owner of 16 acres of office, retail and leisure space in and around Camden Market, Market Tech (MKT) achieved something eluding its contemporaries in the wake of the referendum: it achieved a valuation uplift on its property portfolio. This, together with higher rental income, helped to lift adjusted net asset value by 5.7 per cent to 164.2p.
Passing rent rose 10.5 per cent from the March year-end to £35.8m, and there is significant potential income still to be crystallised, with new developments boosting the estimated rental value up to £84m. Part of the attraction is the relatively low rental charges. Within the retail sector, average rents stand at £96 per sq ft compared with £260-£1,475 for the rest of London, while average office rents of £38 per sq ft compare well with the £70-£120 per sq ft charged elsewhere.
Market Tech has also developed its co-working concept, offering desk space to small companies. The business currently has 900 desks and now makes up a fifth of total assets. The Atrium, the group's second such building, was launched during the first half and, together with the other building called the Triangle, are now 88 per cent let. And with stable occupancy it is now targeting a return in excess of £80 per sq ft.
| MARKET TECH (MKT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 149.5p | MARKET VALUE: | £703m | |
| TOUCH: | 149.25-150.25p | 12-MONTH HIGH: | 217p | LOW: 113p |
| DIVIDEND YIELD: | nil | DEVELOPMENT PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 15% | NET DEBT: | 37% | |
| INVESTMENT PROPERTIES: | £1.06bn | |||
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 164 | 10.1 | 1.8 | nil |
| 2016 | 175 | 43.0 | 8.9 | nil |
| % change | +7 | +326 | +392 | - |
