UK Commercial Property REIT Limited
(an
authorised closed-ended investment company incorporated
in
Guernsey
with registration number 45387)
LEI
Number: LEI number:
213800JN4FQ1A9G8EU25
(The
“Company” or “UKCM”)
19 April
2024
FINAL
RESULTS FOR THE YEAR ENDED 31 DECEMBER
2023
UK
Commercial Property REIT Limited (FTSE 250, LSE: UKCM) which owns a
£1.25 billion diversified portfolio of high-quality
income-producing UK commercial property and is managed and advised
by abrdn, announces its final results for the year ended
31 December 2023.
Productive
portfolio management and weighting to structurally supported
sectors driving earnings growth
-
6.3%
growth in annual EPRA EPS to 3.35p1
(FY 2022
3.15p).
-
Total
dividend paid in 2023 increased 4.6% to 3.40p and 99% covered
(FY2022: 3.25p).
-
Annual NAV
total return of 3.0%.
Audited
NAV per share 78.7p (FY2022: 79.7p).
-
Strong
track record of high occupancy maintained at 96% at
year-end.
Asset
management generating earnings growth
-
Continued
momentum in rental reversion opportunities and expected Autumn 2024
earnings boost from delivery of Hyatt, Leeds development.
-
Strategic
asset management focus contributing to strong earnings growth by
adding net £4.9 million p.a. (excluding lease incentives
adjustments) in rent across 2023 and maintaining low void rate at
4%; this demonstrates the appeal of UKCM’s portfolio to occupiers
and the ability to capture reversionary rents.
Values
stable with continued outperformance from diversified
portfolio
-
Portfolio
valuation remained broadly stable, with a marginal 0.89% drop over
the year, net of capital expenditure, to £1.25 billion.
The
Company’s portfolio continues to compare favourably to the MSCI
Balanced Portfolio Quarterly Property Index’s 6.4% fall and has
outperformed the MSCI benchmark2
over 1, 3,
5 and 10 years.
Investing
in future earnings growth
-
Capital
expenditure of £30 million in the year as the Company continues to
invest in driving future earnings growth, with the majority used to
progress UKCM’s Hyatt hotel development in Leeds which is expected to generate a 7.25%
yield on cost when it completes later this year.
Disciplined
Capital Allocated
-
Strengthened
balance sheet via strategic disposals focussed on lower yielding
assets and reducing RCF draw. Alive to reinvestment
opportunities.
-
Balance
sheet provides flexibility with total group LTV at
17.2%3
(FY2022:
20.0%) at a blended drawn cost of 3.56%.
1 Excludes
Cineworld non cash adjustment announced in Q2 2023
results.
2 Benchmark:
MSCI UK Balanced Portfolios benchmark to 31
December 2023
3 Calculated
under AIC guidance, as gross borrowings less cash divided by
portfolio value.
For
further information please contact:
Will Fulton / Jamie Horton /
Peter Taylor, abrdn
Via FTI
consulting
Richard Sunderland / Emily
Smart / Andrew Davis, FTI
Consulting
Tel: 020
3727 1000
UKCM@fticonsulting.com
The
Company's Annual Report and Accounts for the year ended
31 December 2023 will shortly be
available to view on the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/.
The
Documents have also been submitted to the National Storage
Mechanism and are available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
PERFORMANCE
SUMMARY
|
CAPITAL
VALUES AND GEARING
|
31
December 2023
|
31
December 2022
|
%
Change
|
|
Total
assets less current liabilities (excl Bank loan) £’000
|
1,259,579
|
1,327,405
|
-5.1%
|
|
IFRS Net
asset value (£’000)
|
1,023,247
|
1,035,719
|
-1.2%
|
|
Net asset
value per share (p)
|
78.7
|
79.7
|
-1.3%
|
|
Ordinary
Share Price (p)
|
62.0
|
58.4
|
6.2%
|
|
Discount
to net asset value (%)
|
(21.2)
|
(26.7)
|
n/a
|
|
Gearing
(%)*:
|
17.2
|
20.0
|
n/a
|
|
|
|
|
|
|
|
1
year
%
return
|
3
year
%
return
|
5
year
%
return
|
|
TOTAL
RETURN
|
|
|
|
|
NAV
†
|
3.0
|
2.5
|
1.7
|
|
Share
Price †
|
13.1
|
6.6
|
(4.7)
|
|
UKCM
Direct Portfolio
|
3.9
|
9.3
|
12.0
|
|
MSCI
Balanced Portfolios Quarterly Property Index
|
(1.9)
|
3.7
|
4.3
|
|
FTSE Real
Estate Investment Trusts Index
|
11.6
|
(1.1)
|
8.3
|
|
FTSE
All-Share Index
|
7.9
|
28.1
|
37.7
|
|
|
|
|
|
|
|
31
December 2023
|
31
December 2022
|
|
|
EARNINGS
AND DIVIDENDS
|
|
|
|
|
Net profit
/ (loss) for the year £’000
|
31,708
|
(222,329)
|
|
|
Adjusted
EPRA Earnings per share (p)
|
3.35
|
3.15
|
|
|
IFRS
Earnings per share (p)
|
2.44
|
(17.11)
|
|
|
Dividends
declared per ordinary share (p)
|
3.40
|
3.25
|
|
|
Dividend
Yield (%)#
|
5.5
|
5.6
|
|
|
MSCI
Benchmark Yield (%)
|
5.1
|
4.8
|
|
|
FTSE Real
Estate Investment Trusts Index Yield (%)
|
4.5
|
4.6
|
|
|
FTSE
All-Share Index Yield (%)
|
4.0
|
3.6
|
|
|
|
|
|
|
|
ONGOING
CHARGES AND VACANCY RATE
|
|
|
|
|
As a % of
average net assets including direct property costs
|
1.5
|
1.2
|
|
|
As a % of
average net assets excluding direct property costs
|
0.9
|
0.8
|
|
|
Vacancy
rate (%)
|
4.0
|
2.0
|
|
*
Calculated, under AIC guidance, as gross borrowings less cash
divided by portfolio value.
† Assumes
re-investment of dividends excluding transaction costs.
# Based on
dividend paid in 2023 of 3.40p and the share price at 31 December 2023.
Sources:
abrdn, MSCI
CHAIR’S
STATEMENT
Dear
Shareholder,
I am pleased to present the UKCM Annual Report for the year to
December 2023.
The Board can report that the UK market has recovered a little of
the poise that was lost in the steep decline in commercial property
values experienced in the second half of 2022. The MSCI UK
Quarterly property index recorded a –1.0% total return for the
year; a marked improvement from the –9.1% of 2022.
To set the scene for this muted performance, the Bank of
England (BoE) aggressively raised
interest rates through the first half of 2023 before settling at
5.25% in their August 2023 meeting,
(and where they remain at the time of writing). The UK’s Consumer
Price Index (CPI), measuring inflation, declined over the calendar
year from a peak of 10.4% in February
2023 to 4.0% by December
2023.
In such a context, with interest rates rising as inflation was
falling, the Government’s 10-year Gilt has been relatively
volatile. Starting from a yield as low as 1.13% at the beginning of
January 2022, it peaked at around
4.5% in September that year, and then declined to around 3.0% by
February 2023. The later months of
the year have seen gilt yields rise back and surpass that
September 2022 peak, hitting 4.75% in
August 2023. At the time of writing,
the 10-year Gilt has fallen back to a yield of around 4.3%, but the
generally increasing rate environment of 2023 has made it a
difficult backdrop for values to move ahead strongly, especially as
GDP growth has remained lacklustre.
The improvement in property returns recorded in 2023 (whilst still
overall negative) was led by the industrial and living sectors,
both of which posted positive total returns for the year,
counterbalancing the office sector which continued its decline as
thematic headwinds remained. The lack of uniformity across the
sectors has been notable and offered opportunities for diversified
portfolio managers to orientate toward those sectors which would
prospectively perform well.
The industrial market rebounded from a bruising second half of
2022, posting a positive annual total return of 4.1% by the end of
the year according to the MSCI Quarterly Index. Yields stabilised
so that capital value growth levelled out on an annual basis at the
All Industrial level at –0.4%. London and the Southeast posted
total returns of 3.2% and 4.0% respectively, and all regions posted
positive capital value changes on an annual basis. Market rental
growth has decelerated from the positive growth seen in 2022 as
levels of supply and demand became more balanced.
The retail sector posted an annual total return of –0.1% to
December 2023 according to the MSCI
Quarterly Index. The sector enjoyed something of a year of two
halves, with a relatively robust total return of 2.2% in the first
half but reducing again in the second half as the cost-of-living
pressures cemented themselves in consumer psychology. Consequential
consumer spending habits and structural changes in the market
continue to influence performance. Typically, value-conscious
consumers have propelled discount retailers to the forefront of UK
retail sales and much of the recovery was influenced by strong
performance within the high-yielding shopping centres and resilient
retail warehousing sub-sectors, with the latter posting consistent
month-on-month rental growth over the year.
The office sector continued to underperform, delivering an annual
total return of –10.2% to December
2023 according to the MSCI Quarterly Index. Weakening
capital values led this decline, with the deterioration
accelerating over 2023 as the Bank of England raised interest rates. An uneven
performance
across the sector was experienced as London West End offices were
substantially stronger at –2.4% total annual return than the –13.9%
and –15.4% for the City of London
and wider Southeast respectively. Market rental value growth was
also uneven with Midtown and West End offices leading the pack with
an annual 4.8% and 4.4% respectively, compared to 2.4% for the year
for all offices.
The alternatives sector, or ‘Other’ as categorised by MSCI, saw an
annual total return of –0.3% over 2023. Notable within these
returns were a resilient living sector, benefitting from a supply
demand imbalance. Purpose Built Student Accommodation (PBSA)
delivered strong total returns of 2.7%, with a return of 1.4%
delivered solely in Q4. Elsewhere, the hotel market reversed its
recent fortunes in the face of sustained cost of living pressures
and delivered above All Property total returns at 0.8% to
December 2023.
2024 has started with a renewed confidence and whilst ‘caution’ is
the watchword, the market is displaying the hallmarks of producing
a positive annual return for the year which would be welcomed by
many. The Real Estate Investment Trust market is seen by some as a
leading indicator of the direct market, and share prices have moved
ahead in recent months, triggered by clear anticipation of an
improving macroeconomic
picture and the consequent potential for corporate transaction
activity. The direct property market is expected to follow later in
the year and should continue to improve into 2025 if lower interest
rates result from inflation stabilising. At the time of writing,
oil and commodity prices are rising which suggests the path to
lower interest rates and uninterrupted economic growth might not be
straightforward.
In such a diverse out turn across sectors, assets and regions, the
Company’s managers have done well to record a relatively strong
positive total return, meaningfully exceeding the MSCI Benchmark
index for the year.
Portfolio and Corporate Performance
Earnings Growth
– the Company delivered a net £4.9 million p.a. increase in rental
income from active asset management (excluding lease incentive
adjustments) and three development completions (243,000 sq ft)
during the year.
Interest costs have been managed carefully and the company has
shown considerable balance sheet discipline.
For example, during the year, the Company sold an industrial asset
in Wembley at 3.49% initial yield and paid down its revolving
credit facility (RCF) which had an interest cost of approx. 7.2%
hence significantly enhancing net earnings on this sum.
Dividend cover on adjusted EPRA earnings for 2023 was 99% with an
expectation of this improving later in 2024 as asset management
initiatives come through.
|
Year
|
Adjusted EPRA EPS
|
|
2021
|
2.65 pence per share
|
|
2022
|
3.15 pence per share
|
|
2023
|
3.35* pence per share
|
*Excluding non-cash Cineworld adjustment announced in Q2 2023
results
NAV Stability
– Valuations stabilised following the aggressive market repricing
in the final quarter of 2022, recording a -1.2% net asset value
movement in 2023. Taking into account the positive earnings for the
year, the Company’s NAV total return was 3% for the
year.
The Board continued to authorise capital expenditure throughout the
year to invest in assets that would drive future earnings growth.
The majority of capital was utilised to progress the Company’s
Hyatt hotel development in Leeds
which is expected to generate a 7.25% yield on cost when it
completes later this year, and which should contribute to enhanced
earnings for the company overall.
|
|
Pence per share
|
|
Opening Net Asset Value 31 December 2022
|
79.7
|
|
Gross Valuation movement
|
1.3
|
|
Capital Expenditure
|
(2.3)
|
|
Net revenue
|
3.4
|
|
Quarterly dividends paid
|
(3.4)
|
|
Closing Net Asset Value 31 December 2023
|
78.7
|
Disciplined Balance Sheet Management
– Mindful of the uncertain macroeconomic and geopolitical
environment at the current time, the Company continues to maintain
a prudent approach to debt to allow it to maintain a robust balance
sheet. Gearing remains low relative to UKCM’s peer group at 17.2%
(2022:20.0%) across its three debt facilities, as calculated using
AIC methodology.
All debt covenants are well covered and there is an additional £330
million of unencumbered property which provides further significant
headroom and flexibility with respect to the Company’s covenant
package.
UKCM consequently had financial resources of £91 million available
at the end of the year, after allowing for future capital
commitments and the February 2024
dividend. The bulk of these resources relate to the Company’s
reduced RCF which is currently a relatively expensive form of debt
and so only likely to be deployed if a compelling and accretive
opportunity arises.
|
Blended Group Loan to Value
|
17.2%*
|
|
Blended period to maturity
|
4.7 years
|
|
Weighted cost of drawn debt
|
3.56%
|
|
Drawn debt at fixed rate
|
84%
|
*Calculated under AIC guidance
As mentioned, the combination of balance sheet and asset management
has led to a property performance of 3.9% total return from UKCM’s
high quality portfolio, which represents a strong 1-year
outperformance of 5.8%. against the MSCI benchmark. UKCM’s Board
and Manager are pleased to report long-term outperformance of the
property portfolio against the MSCI Benchmark over all the
traditional time periods of 1, 3,5 and 10 years as shown
below.
|
|
UKCM
|
Benchmark
|
|
1 Year
|
3.9%
|
-1.9%
|
|
3 Years (% p.a.)
|
3.0%
|
1.2%
|
|
5 Years (% p.a.)
|
2.3%
|
0.9%
|
|
10 Years (% p.a.)
|
6.0%
|
5.4%
|
|
Since Inception (% p.a.)
|
4.7%
|
3.9%
|
Source :- MSCI
Portfolio Activity
Further details on all investment transactions and significant
lettings during 2023 are outlined in the Annual Report and Accounts
which is available to view on
the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/
Post the December 2023 year end, at
the end of January 2024, the Company
completed the sale of its Craven House offices in London’s West End
for £22 million at December 2023
valuation, representing a 4.6% net initial
yield.
The Company believes that the benefits of recycling sale proceeds
to reduce floating rate debt costing 7.2% at this time outweighed
the planning risk and capital expenditure that would have been
required to generate future rental growth from the
asset.
Furthermore, at the end of February
2024, the Company completed the sale of its Temple Quay
office in Bristol for £14.5
million, in line with the year end December
2023 valuation. Although well located in Bristol, the property was close to the end of
its economic life with a short lease remaining. The Investment
Manager worked on many options but concluded that the property
would require a significant injection of capital to rejuvenate the
asset, which, together with planning risk and a redevelopment
period would have resulted in an extended period of no
income.
Dividends
The Company paid four interim dividends totalling 3.40 pence per share during the period. This
represents an 4.6% increase in ordinary distributions over the
year, a level which was 99% covered. Positive initiatives in hand
within the portfolio are anticipated to give the Board an
opportunity to keep this dividend level under review in
2024.
Environmental, Social and Governance
(“ESG”)
The Board fully appreciates the importance of embedding ESG within
our ways of working, and ESG considerations underpin every Board
discussion and decision. Whilst taking ESG seriously is of critical
importance to the world in general, the Board believes that it also
plays a critical role in both protecting and creating future value
for the company’s portfolio, and that the Board’s focus on ESG at
the company and asset level will lead to enhanced income for
shareholders.
Real estate has a very large role to play in our environment, and
the Company has previously announced two significant Net Zero
Carbon targets following a bottom-up asset-level review across the
entire portfolio. By 2030, we aim to achieve Net Zero Carbon for
landlord operational emissions and extend this to all emissions by
2040. These targets are in advance of the UK Government’s target of
2050. Further details on all targets are outlined in the ESG
Report.
I would like to thank my fellow Board members and the Investment
Manager for their considerable commitment to the company over the
reporting year, and it has been gratifying to see the share price
improve markedly to the benefit of shareholders over this
time.
Recommended all-share combination
On 21 March 2024, the Company
announced they had reached agreement on the terms of a recommended
all-share combination with Tritax Big Box REIT plc (“BBOX”)
pursuant to which BBOX will acquire the entire issued and to be
issued ordinary share capital of the Company (the
"Combination").
The Combination is conditional on, among other things, the approval
of the Company's shareholders at a Court Meeting and a General
Meeting to be held on 2 May
2024.
For full details of the Combination, please refer to the scheme
document published by the Company on 9 April
2024, available through the Company's website at
ukcpreit.com/en-gb/merger
Peter Pereira Gray
Chair
19 April 2024
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Annual Report and
the Group Consolidated Financial Statements in accordance with
applicable Guernsey law and those International Financial Reporting
Standards (“IFRS”) as adopted by the European Union. They are also
responsible for ensuring that the Annual Report includes
information required by the Rules of the FCA.
In preparing those Group Consolidated Financial Statements the
Directors are required to:
-
Select
suitable accounting policies in accordance with IAS 8: Accounting
Policies, Changes in Accounting Estimates and Errors and then apply
them consistently;
-
Make
judgement and estimates that are reasonable and
prudent;
-
Present
information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable
information;
-
Provide
additional disclosures when compliance with the specific
requirements in IFRS as adopted by the European Union is
insufficient to enable users to understand the impact of particular
transactions, other events and conditions on the Group’s financial
position and financial performance;
-
State that
the Group has complied with IFRS as adopted by the European Union,
subject to any material departures disclosed and explained in the
Group Consolidated Financial Statements; and
-
Prepare
the Group Consolidated Financial Statements on a going concern
basis unless it is inappropriate to presume that the Group will
continue in business.
The Directors confirm that they have complied with the above
requirements in preparing the Group Consolidated Financial
Statements.
The Directors are responsible for keeping proper accounting records
that are sufficient to show and explain, the Group’s transactions
and disclose with reasonable accuracy at any time, the financial
position of the Group and enable them to ensure that the Group
Consolidated Financial Statements comply with The Companies
(Guernsey) Law 2008.
The Directors are responsible for ensuring that the Group complies
with the provisions of the Listing Rules and the Disclosure Rules
and Transparency Rules of the FCA which, with regard to corporate
governance, require the Group to disclose how it has applied the
principles, and complied with the provisions, of the AIC Code on
Corporate Governance applicable to the Group.
The maintenance and integrity of the Company’s website is the
responsibility of the Directors through its Investment Manager; the
work carried out by the auditors does not involve considerations of
these matters and, accordingly, the auditors accept no
responsibility for any change that may have occurred to the
Consolidated Financial Statements since they were initially
presented on the website. Legislation in Guernsey governing the
preparation and dissemination of the consolidated financial
statements may differ from legislation in other
jurisdictions.
On behalf of the Board
Peter Pereira Gray
Director
19 April 2024
|
CONSOLIDATED
STATEMENT OF
COMPREHENSIVE
INCOME
|
|
|
For
the year ended 31 December 2023
|
|
|
|
Year
ended
31
December 2023
£’000
|
Year
ended
31
December 2022
£’000
|
|
INCOME
|
|
|
|
|
Rental
income
|
|
66,602
|
66,930
|
|
Service
charge income
|
|
6,229
|
6,451
|
|
Loss
on investment properties
|
|
(8,451)
|
(263,090)
|
|
Loss
on liquidation of subsidiaries
|
|
-
|
(117)
|
|
Total
income / (expense)
|
|
64,380
|
(189,826)
|
|
EXPENDITURE
|
|
|
|
|
Investment
management fee
|
|
(6,738)
|
(8,617)
|
|
Direct
property expenses
|
|
(6,911)
|
(6,266)
|
|
Service
charge expenses
|
|
(6,229)
|
(6,451)
|
|
Other
expenses
|
|
(2,832)
|
(2,299)
|
|
Total
expenditure
|
|
(22,710)
|
(23,633)
|
|
Operating
profit / (loss) before finance costs
|
|
41,670
|
(213,459)
|
|
FINANCE
COSTS
|
|
|
|
|
Finance
costs
|
|
(11,189)
|
(9,181)
|
|
Interest
income
|
|
1,227
|
311
|
|
Net
finance costs
|
|
(9,962)
|
(8,870)
|
|
Operating
profit / (loss) after finance costs
|
|
31,708
|
(222,329)
|
|
Net
profit / (loss) from ordinary activities before
taxation
|
|
31,708
|
(222,329)
|
|
Taxation
on profit/(loss) on ordinary activities
|
|
-
|
-
|
|
Net
profit / (loss) for the year
|
|
31,708
|
(222,329)
|
|
|
|
|
|
|
Total
comprehensive income / (deficit) for the year
|
|
31,708
|
(222,329)
|
|
|
|
|
|
|
Basic
and diluted earnings per share
|
|
2.44p
|
(17.11)p
|
|
Adjusted
EPRA earnings per share
|
|
3.35p
|
3.15p
|
The
accompanying notes are an integral part of this statement, these
are available to view on the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/
All of the
profit and total comprehensive income for the year is attributable
to the owners of the Company. All items in the above statement
derive from continuing operations.
|
CONSOLIDATED
BALANCE SHEET
|
|
|
As
at 31 December 2023
|
|
|
|
Year
ended
|
Year
ended
|
|
|
|
31
December 2023
£’000
|
31
December 2022
£’000
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
Investment
properties
|
|
1,179,527
|
1,275,610
|
|
|
|
1,179,527
|
1,275,610
|
|
CURRENT
ASSETS
|
|
|
|
|
Investment
properties held for sale
|
|
44,068
|
-
|
|
Trade
and other receivables
|
|
42,125
|
52,648
|
|
Cash
and cash equivalents
|
|
22,115
|
30,861
|
|
|
|
108,308
|
83,509
|
|
Total
assets
|
|
1,287,835
|
1,359,119
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Trade
and other payables
|
|
(28,256)
|
(31,714)
|
|
|
|
(28,256)
|
(31,714)
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
Bank
loans
|
|
(236,332)
|
(291,686)
|
|
|
|
|
|
|
Total
liabilities
|
|
(264,588)
|
(323,400)
|
|
Net
assets
|
|
1,023,247
|
1,035,719
|
|
REPRESENTED
BY
|
|
|
|
|
Share
capital
|
|
539,872
|
539,872
|
|
Special
distributable reserve
|
|
538,451
|
542,472
|
|
Capital
reserve
|
|
(55,076)
|
(46,625)
|
|
Revenue
reserve
|
|
-
|
-
|
|
Equity
shareholders’ funds
|
|
1,023,247
|
1,035,719
|
|
Net
asset value per share
|
|
78.7p
|
79.7p
|
The
accompanying notes are an integral part of this statement, these
are available to view on the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/
The
accounts were approved and authorised for issue by the Board of
Directors on 19 April 2024 and signed
on its behalf by:
Peter Pereira Gray
Director
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITYFor the
year ended 31 December
2023
|
|
|
Share
Capital
|
Special
Distributable
Reserve
|
Capital
Reserve
|
Revenue
Reserve
|
Equity
shareholders’
funds
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
At
1 January 2023
|
|
539,872
|
542,472
|
(46,625)
|
-
|
1,035,719
|
|
Total
comprehensive income
|
|
-
|
-
|
-
|
31,708
|
31,708
|
|
Dividends
paid
|
|
-
|
-
|
-
|
(44,180)
|
(44,180)
|
|
Transfer
in respect of loss on investment property
|
|
-
|
-
|
(8,451)
|
8,451
|
-
|
|
Transfer
from special distributable reserve
|
|
-
|
(4,021)
|
-
|
4,021
|
-
|
|
As
31 December 2023
|
539,872
|
538,451
|
(55,076)
|
-
|
1,023,247
|
For the
year ended 31 December 2022
|
|
|
Share
Capital
|
Special
Distributable
Reserve
|
Capital
Reserve
|
Revenue
Reserve
|
Equity
shareholders’
funds
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
At
1 January 2022
|
|
539,872
|
568,891
|
216,465
|
-
|
1,325,228
|
|
Total
comprehensive deficit
|
|
-
|
-
|
-
|
(222,329)
|
(222,329)
|
|
Dividends
paid
|
|
-
|
-
|
-
|
(67,180)
|
(67,180)
|
|
Transfer
in respect of loss on Investment property
|
|
-
|
-
|
(263,090)
|
263,090
|
-
|
|
Transfer
from special distributable reserve
|
-
|
(26,419)
|
-
|
26,419
|
-
|
|
As
31 December 2022
|
539,872
|
542,472
|
(46,625)
|
-
|
1,035,719
|
The
accompanying notes are an integral part of this statement, these
are available to view on the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/
|
CONSOLIDATED
CASH FLOW STATEMENT
|
|
|
For
the year ended 31 December 2023
|
|
|
|
Year
ended
|
Year
ended
|
|
|
|
31
December 2023
£’000
|
31
December 2022
£’000
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net
profit/(loss) for the year before taxation
|
|
31,708
|
(222,329)
|
|
Adjustments
for:
|
|
|
|
|
Loss
on investment properties
|
|
8,451
|
263,090
|
|
Loss
on liquidation of subsidiaries
|
|
-
|
116
|
|
Movement
in lease incentives
|
|
(4,451)
|
(2,360)
|
|
Movement
in provision for bad debts
|
|
1,876
|
256
|
|
Decrease
in operating trade and other receivables
|
|
13,098
|
219
|
|
(Decrease)
/ Increase in operating trade and other
payables
|
|
(3,458)
|
4,016
|
|
Net
Finance costs
|
|
9,962
|
8,870
|
|
Net
cash inflow from operating activities
|
|
57,186
|
51,878
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Purchase
of investment properties
|
|
(225)
|
(8,304)
|
|
Sale
of investment properties
|
|
73,664
|
25,609
|
|
Capital
expenditure
|
|
(29,707)
|
(48,517)
|
|
Net
cash inflow/(outflow) from operating activities
|
|
43,732
|
(31,212)
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Facility
fee charges from bank financing
|
|
(828)
|
(727)
|
|
Dividends
paid
|
|
(44,180)
|
(67,180)
|
|
Bank
loan repaid
|
|
(68,000)
|
(10,000)
|
|
Bank
loan drawdown
|
|
12,500
|
53,000
|
|
Bank
loan interest paid
|
|
(9,609)
|
(7,166)
|
|
Loan
facility set up costs
|
|
(744)
|
(164)
|
|
Interest
income
|
|
1,227
|
311
|
|
Net
cash outflow from financing activities
|
|
(109,664)
|
(31,926)
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
|
(8,746)
|
(11,260)
|
|
|
|
|
|
|
Opening
cash and cash equivalents
|
|
30,861
|
42,121
|
|
|
|
|
|
|
Closing
cash and cash equivalents
|
|
22,115
|
30,861
|
|
REPRESENTED
BY
|
|
|
|
|
Cash
at bank
|
|
16,066
|
21,321
|
|
Money
market funds
|
|
6,049
|
9,540
|
|
|
|
22,115
|
30,861
|
The
accompanying notes are an integral part of this statement, these
are available to view on the Company's corporate website at
https://www.ukcpreit.com/en-gb/literature/
All
enquiries to:
The
Company Secretary
Northern
Trust International Fund Administration Services (Guernsey)
Limited
Trafalgar
Court
Les
Banques
St Peter
Port
Guernsey
GY1
3QL
Tel: 01481
745001
Fax: 01481
745051
Will Fulton / Jamie Horton /
Peter Taylor, abrdn
Via FTI
consulting
Richard Sunderland / Emily
Smart / Andrew Davis, FTI
Consulting
Tel: 020
3727 1000
UKCM@fticonsulting.com