07 December 2015
K&C REIT plc, the residential REIT group, today announces its Annual Results for the year ended 30 June 2015. A copy of the annual report and accounts, along with notice of the Company's annual general meeting, to be held at the offices of Allenby Capital Limited, 3 St. Helen's Place, London EC3A 6AB on 30 December 2015 at 10.00 a.m., has today been posted to shareholders. A copy will also be available from the Company's website, www.kandc-reit.co.uk.
The full results are available to
The following information has been extracted from the Company's annual report and accounts, which cover the period ended 30 June 2015 prior to the Company's admission to AIM.
This is K&C REIT plc's first annual report since it was admitted to AIM on 3 July 2015. It has been an exciting time for all of us who have been involved in creating a residential REIT (real estate investment trust) that has an excellent opportunity in the London market.
Market and strategy
The Company operates in the residential letting market, with a particular emphasis on Central London. The Company will seek to acquire property assets held within UK-incorporated holding companies, where there is an opportunity to capitalise on the advantages afforded to REITs to provide an exit route for vendors.
On 3 July 2015, the Group was admitted to trading on AIM and became an HM Revenue and Customs-approved REIT on admission. Shortly following admission, at which the Group issued 43,035,622 ordinary shares, including 35,663,400 shares issued at 10 pence per share pursuant to a fundraising, generating gross cash proceeds of £3,566,340, the Company acquired the entire share capital of Silcott Properties Limited for a consideration of £3,630,000, of which £300,000 was satisfied by the issuance of 3,000,000 ordinary shares in K&C, and 4,372,222 ordinary shares in K&C were issued to satisfy liabilities of the Company. Silcott is a special purpose vehicle that owns a freehold property in Central London with ten apartments for rent.
During the period under review, Nick Irens resigned as a non-executive director for personal reasons. I wish to thank him for his contribution to the Company during its formative stage. George Rolls and I will not be offering ourselves for re-election at the annual general meeting as we wish to devote more time to our other business interests. Tim James will assume the role of managing director. During November, we welcomed Michael Davies as a non-executive director, and he has agreed to assume the role of chairman following the annual general meeting. The Board looks forward to benefiting from Michael's wise counsel and considerable experience.
The Company has traded in line with plan and expectations during the period and since the period-end. The directors are developing a pipeline of opportunities and will bring these to the attention of shareholders at the appropriate time.
During the period, the Company reports a consolidated loss from operating activities of £144,502. The total comprehensive expense for the period was £242,618. The financial results in the annual report cover a period prior to the Company's admission to AIM and acquisition of Silcott Properties Limited, which is referred to in more detail in note 15.
The Company took a significant step forward through its admission to AIM and achieving REIT status. Now it needs to build a strong business with high quality assets that will be able to support an increasing income yield. To achieve this, the Company will be required to raise more capital in order to make further acquisitions and the directors look forward to working closely with funding sources, both equity and debt providers, to achieve this objective.
The Board continues to review a number of acquisition opportunities and, in this regard, we are pleased to report that we have exclusivity on a particular project, that the Board considers to have the potential to enhance NAV per share. We hope to report further on this in due course.
7 December 2015
|K&C REIT plc||[email protected]|
|Tim James, Managing Director||+44 (0) 7768 833029|
|Allenby Capital Limited|
|Jeremy Porter/James Reeve||+44 20 3328 5656|
|Yellow Jersey PR||+44 (0) 7768 534641|
|Philip Ranger/Dominic Barretto|
Notes to editors:
K&C REIT's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of property-owning SPVs (Special Purpose Vehicles). The Directors intend that the group will acquire, develop and manage residential property assets in Central London and other key residential areas in the UK.