UK Commercial Property REIT's NAV grows in Q4

Real estate investment trust UK Commercial Property said on Thursday that its net asset value rose 7.9% to 102.0p per share in the fourth quarter.

UK Commercial Property stated the fourth-quarter NAV improvement had resulted in a total return of 21.5% for the year and provided it with dividend cover of 111% for the whole year after declaring a dividend of 0.75p per share for the quarter ended 31 December, up 16.4% year-on-year.

The FTSE 250-listed firm rent collection for billings raised in the fourth quarter stood at 96% after allowing for agreed rent deferrals - in line with improved rental collection rates experienced throughout 2021 and reflecting an improved economic environment. Total rent collection for 2021 stood at 96%.

UKCM highlighted that strong investment activity increased gearing to 13.5% from 4.4% and said its retained a "robust balance sheet", with increased gearing following acquisitions during the fourth quarter.

Chairman Ken McCullagh said: "The company had a strong final quarter, continuing the trend seen throughout the year.

"With the lifting of Covid-19 restrictions in the UK and the strong performance of the company in the final quarter, we are also pleased to further increase the dividend, reflecting our confidence in the year ahead.”

As of 0815 GMT, UKCM shares were up 1.40% at 86.70p.