Songbird Estates, which through its subsidiary Canary Wharf Group, owns much of the iconic office development in London's east end, has benefited from strong lease renewals in the first half of 2012.
Bank of New York Mellon extended terms on its 152,000 square feet site at One Canada Square while a further 20,000 square feet of leasings were completed between January and June.
The crucial net asset value per share figure increased by 4.7%, or 9p, to £1.99 between December and June.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Underlying profit before tax for the first half was £17.3m compared with £6.6m for the equivalent period in 2011. The increase of £10.7m was mainly attributable to an increase in net property income of £8.3m, combined with a reduction in administrative expenses of £2.5m.
The Loan to Value rate is now at 64.6%.
Songbird has also lowered the coupon on its preference shares and removed the option of early redemption, the effect being to "eliminate short term refinancing risks".
The shares were up 3.3% in morning trading.
BS
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
