Real estate investment trust McKay Securities (MCKS) raised nearly £87m of new capital in February last year to invest in a fast-improving property market in the south east of England. The results have been little short of prolific.
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Thanks to a string of refurbished properties and strong demand from tenants wanting quality office space, contracted rental income rose by a quarter to £20.5m. Meanwhile, the estimated rental value of McKay's properties - the rent they would fetch at current market rates - jumped by nearly 60 per cent to £30.2m. The difference between these two figures is the company's so-called 'reversionary potential', which rose more than threefold to £9.7m.