Property developer U&I (UAI) is counting on favourable planning decisions on some of its public-private partnership schemes in the next few months, after delivering just £3.6m in trading and development gains during its first-half. Although that figure was less than a third of last year's comparative figure, management has retained its £35m-£45m target range for the year to March 2020.
The cost of funding these developments – which included the Arts Building and Kensington Church Street in London – also meant the loan-to-value ratio of the group’s portfolio rose to 47.1 per cent, just under a ceiling target of 50 per cent. However, chief financial and operating officer Marcus Shepherd expects that ratio to reduce during the course of the year as planning decisions are received.
The value of retail properties – which account for around 70 per cent of the investment portfolio – declined by 3.2 per cent on a like-for-like basis. However, retail assets were relet “at around" their estimate rental value, according to Mr Shepherd, who told us the focus is now on “food-anchored, secondary” retail assets rather than high-street shopping locations.
House broker Peel Hunt forecasts adjusted net asset value of 288p at the March 2020 year-end, rising to 300p the same time the following year.
| U&I (UAI) | ||||
| ORD PRICE: | 143p | MARKET VALUE: | £180m | |
| TOUCH: | 143-145p | 12-MONTH HIGH: | 217p | LOW: 127p |
| DIVIDEND YIELD: | 4.1% | TRADING PROPERTIES: | £188m | |
| DISCOUNT TO NAV: | 46% | NET DEBT: | 47%* | |
| INVESTMENT PROPERTIES: | £261m** | |||
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 284 | -4.2 | -3.5 | 2.4 |
| 2019 | 263 | -23.9 | -18.3 | 2.4 |
| % change | -7 | - | - | |
| Ex-div: | 28 Nov | |||
| Payment: | 20 Dec | |||
| **Excludes lease liabilities. **Includes investments in joint ventures. | ||||
