UK Commercial Property Trust (UKCPT), a UK-focused commercial property trust, swung into the red in the first half and reported a decline in its net asset value (NAV) per share.
The firm posted a loss before tax for the half year of £4.43m, against a profit of £32.8m the same half the previous year. Losses per share came in at 0.37p against earnings per share of 2.74p per share previously.
Rental income for the period increased from £33.67m to £36.99m through selective acquisitions and asset management initiatives, but this was offset by a loss on investment properties of £30.87m compared to a gain of £5.9m the same half the previous year. Total income fell from £39.66m to £6.21m. Total expenditure rose from £5.64m to £6.73m.
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The NAV per share slipped from 75.5p to 72.3p in the first half, mainly due to the 2.4% like-for-like decline in the value of its property portfolio.
Total assets increased from £1.05bn to £1.10bn, while cash and equivalents rose to £47.5m (2011 June 30th: £29.0m).
Chris Hill, Chairman of UKCPT, said: "Our results for the first half of the year represent a resilient performance in an economic environment that continues to present challenges. We have grown the size of the portfolio through targeted acquisitions, and have already had successes in increasing the income from these assets.
"We continue to focus on maximising income from the portfolio to support our attractive dividend yield, and have sufficient headroom in our debt facilities to allow us to make further acquisitions where we see good quality assets with potential for value growth through asset management."
Looking forward, the firm has "relatively strong" balance sheets and believes that if the problems in the Eurozone can be overcome, this should lead to a more stable environment for private sector investment to increase and go some way to counteract the fall in public sector spending.
The firm is planning to remain focused on protecting portfolio income while minimising the fall in capital values being experienced across the majority of the property market and in particular the retail sector.
Robert Boag, Senior Investment Director at Ignis Asset Management (UKCPT's Investment Manager), added: "The first half of the year witnessed some good progress, with highlights including the resolution to award planning consent and the signing of a pre-let with Debenhams for our New Riverside redevelopment in Shrewsbury, and a number of lease regears, including at our recently acquired industrial portfolio.
"Although the weakness of the broader economy continues to present challenges, we believe that our high quality portfolio, with its South East bias, means that we are well positioned to weather the storm, and we will continue to work hard to maintain, if not improve, rental income and values."
The share price rose 0.14% to 69.70p by 10:20.
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