Pint-sized real estate investment trust (Reit) McKay Securities returned to profit at its full-year results, reporting a modest 3.5 per cent rise to its portfolio of south-east England based office and industrial property and boosting its net asset value (NAV) by 13 per cent to 195p.
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Disposals totalling £27m in the period have not yet been reinvested, so the final dividend has been reduced from 9.5p to 5.5p to reflect the drop in earnings. McKay's own research shows that between January 2005 and December 2007, there were £5.7bn of investment transactions in the south-east office market, of which 85 per cent were properties worth £20m or less - its typical lot size.