Ediston Property Investment Company (Epic), which floated a year ago at 100p, has reported a 1.83per cent rise in asset value for its final quarter to 106.5p.
The shares were steady at 109.6p yesterday, reflecting a successful first year in which the trust raised £36m in new equity and £40m in debt from Aviva, adding to the £95m raised at launch.
The property portfolio of the real estate investment trust was valued on 30 September at £136.4m, a rise of 2.2 per cent from June 30, and the market value is currently £140m excluding new acquisitions. Importantly for investors, Epic is on target to pay out its targeted dividend yield of 5.5per cent.
During the quarter Epic, the flagship of the Ediston Properties group founded in 2004 by former Standard Life Investments director Danny O’Neill, ploughed £10m into three leisure properties, in Hartlepool, Liverpool and Telford, reflecting a yield of 8.60 per cent. The properties “offer a number of opportunities for the investment adviser (Ediston) to implement its particular style of asset management in order to enhance the company’s income profile and returns”, said Epic, which has a high-powered non-executive board of directors.
It also recorded a new letting, in Morrison Street, Edinburgh, to Capita Business Services at a rent of £25.14 per sq ft.
Calum Bruce at Ediston Properties commented: “We have had a busy 12 months. Over the course of the summer we raised more equity and we are currently going through the process of getting that deployed with a view to having it placed by the end of the year.”
The main targets were retail warehousing, which offered scope for adding value, and regional offices where there was a supply shortage in the big cities.
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