First-half trading was muted, yet stable, for Midlands landlord, Mucklow (MKLW). Underlying profits rose by 3 per cent - and the dividend followed - but that was thanks to an unusually low level of property costs rather than growth in rents. Chairman Rupert Mucklow says the balance of power may be shifting back to landlords for modern properties, but cheap deals on older sheds are still surpressing rental growth. Mucklow's occupancy rate remained at a very creditable 93.5 per cent.
A couple of major deals improved the portfolio valuation, adding £1.2m to the company's reported profits and book value. The company signed a new five-year lease on a distribution warehouse in Worcester, maintaining the passing rent of £565,000. The building was going cheap in 2010 because of the imminent lease expiry, so the deal vindicates Mucklow's decision to buy it. The company also exchanged contracts to sell - at a price substantially above the previous valuation - a vacant warehouse in Birmingham to a purchaser that wants to turn the site into a data centre.