UK Commercial Property Trust reports fall in asset value

Helen Cahill
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Investors have been getting cold feet about commercial property after the Brexit vote (Source: Getty)

UK Commercial Property Trust (UKCPT) reported a fall in the value of its assets per share yesterday, down by 0.2 per cent in the six months to the 30 June.

The news comes after Norway’s sovereign wealth fund cut the value of its UK real estate holdings due to the Brexit vote and the uncertainty surrounding commercial property in the UK.

Andrew Wilson, UKCPT chairman, said: “Set against this uncertain outlook, UKCPT’s strong defensive characteristics, with a diversified portfolio, by sector, geography and tenant base, position it well to provide a sustainable rental income stream to underpin the company’s attractive dividend yield.

Read more: Norway's sovereign wealth fund cuts the value of its UK property portfolio

“This is crucial in an environment where the demand for certainty of income remains a key driver of investment decision making and allocation.”

The company, which owns commercial property across London, said it had sold various properties, including an office on 6 Arlington Street, St James’s and Dolphin House, Sunbury, for a combined £45.6m.

Compared to a benchmark figure of 6.8 per cent, UKCPT’s void rate was relatively favourable at 2.8 per cent on 30 June.

UKCPT said its portfolio return of 2.8 per cent was “driven mainly by the industrial and office sectors”.