UKCPT sees benefit of strategy change

UK Commercial Property Trust has reported a portfolio total return of 4.4% for 2016 boosted by the company’s strategy to shift away from retail in favour of industrial.

UKCPT, which is advised by Standard Life Investments, said the total return compared favourably with the IPD benchmark return of 3.6%. The company’s NAV total return was 3.8%.

“I am pleased to report that the shift in strategy adopted a couple of years ago of reducing the portfolio’s retail weighting and increasing its industrial exposure has begun to bear fruit, with encouraging relative performance,” said Andrew Wilson, chairman of UKCPT.

The investment company has continued to build its exposure to the industrial sector this year.

“In 2017 we have continued the momentum behind our strategy, with the sale of 13 Great Marlborough Street at a yield of 3.3% with proceeds being recycled into a pre-let distribution warehouse development with a yield on capital of 5.8%,” said Will Fulton, fund manager at Standard Life Investments.

UKCPT has net gearing of 11.4%, which it described as one of the lowest gearing levels in its peer group.

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