Allied bases its recovery on rentals
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.ALLIED London Properties has mothballed its housebuilding operations and will continue to sell off its landbank, if it can obtain reasonable prices.
The decision came after the company provided a further pounds 3.5m against housebuilding in the year to the end of June and reduced the capital employed in the division to pounds 10m from pounds 23m a year before and pounds 41m two years earlier.
Pre-tax profits recovered to pounds 1.49m from a loss of pounds 4.8m, helped by a 17 per cent increase in rental income to pounds 17.9m. The company is achieving some rent increases in its retail portfolio, heavily based in the South-east, after five-year reviews. In some cases it is not asking for increases, said Howard Stanton, managing director.
The company has not suffered any major tenant failures and voids are running at less than 10 per cent, he added. The property portfolio was valued at the end of June at pounds 173.8m, 8 per cent below the previous year's valuation.
The total dividend was maintained at 3.53p, paid largely out of reserves for the second year running. Mr Stanton said the company would be concentrating this year on keeping the dividend covered. There were cash balances of pounds 30m at the year end.
Allied London has investigated potential corporate property portfolios and individual property acquisitions. Last year it bought a 25 per cent interest in an office building in Manchester and a group of 11 investment properties from Grand Metropolitan pension funds.
The shares were unchanged at 43p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments