Wynnstay Properties PLC on Wednesday reported strong financial performance with its diversified portfolio overcoming the year’s macroeconomic challenges.
The London-based property investment and development company owns and manages a diverse portfolio of office, retail, warehouse and industrial properties, focusing mainly on locations in the south of England.
In the year ended March 25, pretax income rose 15% to £1.6 million from £1.4 million the previous year.
Net asset value rose 2.3% to 1,136 pence per share from 1,110p.
The company raised is final dividend 6.7% to 16.00p per share from 15.00p, bringing the total dividend for the year to 25.50p up 6.3% from 24.00p year-on-year.
At year end, occupancy was at 99% compared to 100% the year before.
Rental income stood at £2.5 million, up 10% from £2.3 million, reflecting acquisitions carried out during the year.
In May the Riverdale Industrial Estate in Tonbridge was purchased for £2.4 million.
This was followed by the purchase of two warehouse units in January at a combined price of £2.5 million. One vacant property was sold in October for £910,000.
Chair Philip Collins commented: ‘The main risks to continued growth are economic and political, such as significant disruption caused by events beyond our control or the UK economy suffering a significant downturn,
‘The commercial property market is very sensitive to changes in the economic outlook and, in particular, to interest rates. This can result in strong, sometimes extreme, swings in both optimism and pessimism, which can affect asset values and market sentiment towards quoted property investments.’
Alongside its diversified portfolio, the company benefits from the fact the majority of its properties are multi-let, reducing exposure to any single tenant and the risk of lost income from defaults and voids.
Furthermore, leases typically last for five year terms and tenants comprise a broad range of occupiers including international businesses, national and local businesses, government, and national trading chains.
Wynnstay Properties shares were up 0.9% to 681.00 pence each in London on Wednesday afternoon.
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