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Commercial real estate investor UK Commercial Property REIT posted a positive first-half performance, pinned on improving asset valuations amid a recovering economic outlook.
The company's net asset value total return for the six months through June was 6.0%, compared to a negative performance in the previous corresponding period.
UK Commercial Property said the improvement came against the backdrop of an improving economic outlook and also was driven by its overweight position in industrial and logistics.
It upped its dividend in the first two quarters of the year by 40% to 0.644p per share compared to the second half of 2020, with a further top-up dividend of 0.531p paid in May 2021 in respect of 2020.
Rent collection for the third-quarter billing periods was 92% as at 31 August, with negotiations ongoing with tenants who hadn't been able to pay to date.
'The easing of lockdown measures and the vaccination roll out in the UK has triggered a much-needed recovery in the economy and UKCM is seeing the positive impact of this, with portfolio values outperforming our benchmark and improved rent collection,' chairman Ken McCullagh said.
'Furthermore, our healthy financial position allows us to continue to invest responsibly and consider dividend levels against a backdrop of greater market certainty.'