UK Commercial Property REIT Ltd (LON:UKCM) said it will continue to limit its exposure to UK retail after as the sector’s woes pushed the trust into the red in the year to end December 2020.
The Aberdeen Standard Investments managed company said net asset value (NAV) dropped over the year to £1.1bn from £1.2bn, while there was a loss for the year of £10.3mln (2019: profit £1.69mln).
Bad debts and disposals affected the figures, the trust added, with rental collections at 83% of the expected total but its performance overall was helped by its good position in industrial warehouses, an area that has been buoyant during the lockdown periods.
Will Fulton, lead manager, said retail now accounts for only 17% of its portfolio and there is no shopping centre and limited high street exposure.
“Our divestment activity has continued into 2021, giving us £276mln of available capital as we continue to look for opportunities to invest in modern economy, future-fit property sectors that are supported by structural changes.”
Going forward, Fulton said he expects 2021 to be a year of two halves for the investment market.
“Provided vaccinations can be rolled out at sufficient scale in the first half of the year to materially suppress the virus, we expect to see a recovery in activity in the second half of 2021.”
The divided for 2020 drops to 2.3p (3.68p).