Strong financial performance delivering income and value growth
Total profit after tax of £37 million, or 6.9p per share (2024: £4.8 million loss)
Total return of 8.1% (2024: -0.9%)
Dividends paid during the financial year of £20.2 million, a 5.7% increase (2024: £19.1 million)
£12.5 million share buyback programme initiated, with £7.5 million repurchased at an average price of 67p, 33% below the March NAV of 100p
Outperforming repositioned portfolio with improved income and occupancy
Continued MSCI outperformance for 12 consecutive years with a total property return of 7.3% for the year (MSCI UK Quarterly Property Index: 6.3%)
Delivered upper quartile outperformance against the MSCI UK Quarterly Property Index over three, five and ten years, and since launch in 2005
3.8% like-for-like increase in property valuation, or 2.1% after capital expenditure
3.0% like-for-like increase in contracted rent and WAULT increased to 4.9 years to first break
3.8% like-for-like increase in ERV
Reduction in office exposure from 30% to 24%, with three opportunistic disposals of repositioned assets completed during the year totalling £51 million, 5% above March 2024 valuation
Increased occupancy to 94% (2024: 91%)
Captured rental growth through:
25 lettings, 7% ahead of March 2024 ERV
36 lease renewals or regears, 10% ahead of March 2024 ERV
13 rent reviews, 7% ahead of March 2024 ERV
Portfolio with significant reversionary potential of £7.5 million, 16% above the March 2025 contracted rent with:-
£3.4 million from letting vacant space
£4.1 million where market rent is higher than contracted rent
Valuable long-term debt structure
Revolving credit facility fully repaid reducing annual finance costs by £1.0 million from the prior year
Loan to value reduced to 24% (2024: 28%)
Weighted average interest rate of 3.7% (2024: 3.9%)
100% of drawn borrowings fixed with 2031/32 maturities
EPRA NDV of 105p per share, reflecting fair value of debt
Upgrading our assets and creating asset management opportunities
£11.8 million invested across the portfolio
Ten decarbonisation projects converting from gas to electric
Improvement in portfolio EPC ratings, with 83% now rated A-C (2024: 80%)
97% of leases completed during the year contained green clauses
