Property returns to outstrip inflation, says UK Commercial

Guernsey-based property firm UK Commercial Property Trust saw its net asset value (NAV) per share ease a little in 2011 but its vacancy rate remained well below the industry average.

NAV per share at the end of 2011 was 75.5p, down from 77.0p a year earlier, but with a dividend yield (as at the end of 2011) of 7.6%, the company could boast of a total return to shareholders over the year of 4.9%. The 2011 dividend has been maintained at 5.25p.

"The board believes that investment in prime quality UK commercial property will remain attractive for investors, with this asset class continuing to offer comparatively stable returns. This is demonstrated by our manager's in-house forecasts which indicate an all property return of 5.1% in 2012 and annualised total returns for the next three years (2012-2014) of 6.9% per annum," said Christopher Hill, the trust's Chairman.

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