30 March 2016
30 March 2016
K&C REIT plc, the residential REIT group, today announces its interim results for the six months ended 31 December 2015. A copy of the interim report and accounts will be posted to shareholders shortly. A copy will also be available from the Company's website, www.kandc-reit.co.uk.
The full results are available to
This is K&C REIT plc's first interim report since it was admitted to trading on AIM on 3 July 2015.
Market and strategy
K&C REIT plc ("the Company") and its subsidiaries (together "the Group" or "K&C") operate in the residential letting market, with a particular emphasis on Central London. K&C will seek to acquire property assets held within UK-incorporated companies, where there is an opportunity to capitalise on the advantages afforded to REITs to provide an exit route for vendors.
As reported in December, the Company was admitted to trading on AIM on 3 July 2015 and became an HM Revenue and Customs-approved REIT on admission. Shortly following admission, at which the Company issued 43,035,622 ordinary shares at £0.10 per share, including 35,663,400 shares issued pursuant to a fundraising, generating gross cash proceeds of £3,566,340, the Company acquired the entire share capital of Silcott Properties Limited ("Silcott") for a consideration of £3,630,000, of which £300,000 was satisfied by the issuance of 3,000,000 ordinary shares. Silcott is a special purpose vehicle that owns a freehold property in Central London comprising ten leased apartments. A further 4,372,222 ordinary shares were issued to satisfy liabilities of the Company.
K&C has traded in line with management's expectations during the period and since the period-end. Silcott has achieved strong rental growth when reletting its units and the Company has improved the property, with further refurbishment planned for this spring.
One of the three Newbury properties owned by Kensington & Chelsea REIT Limited was sold during the period and a second property has been sold since the period-end, both at a profit. The final property is currently on the market.
During the period, K&C reports a consolidated loss and total comprehensive expense of £938,629. The costs of admission to AIM (£780,728) and of acquiring Silcott (£100,202) have obviously added considerably to the expenses incurred during the period.
During the period, Nigel Payne and George Rolls stepped down as directors of the Company in order to pursue other business interests.
As stated in the annual report, K&C is seeking to build a strong business with high quality assets that will be able to support an increasing income yield. To this end, we will need to raise more capital in order to make further acquisitions. The directors are working closely with funding sources, both equity and debt providers, to achieve this objective.
We announced in our annual report in December that we had exclusivity on a particular project. We are continuing to progress work on that acquisition and hope to be able to report further on developments in the near future. In addition, the Board is reviewing a number of other acquisition opportunities.
30 March 2016
|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.