Member Article

McKay to see rental income increase £10m as market conditions ‘remain positive’

McKay Securities has reported a growth in both rental values and income ahead of today’s AGM.

The Real Estate Investment Trust (REIT), which specialises entirely in South East and London office and industrial markets, is expecting to report an increased contracted rental income from £20.5m p/a at the year end, to circa £30.0m p/a.

McKay has also seen capital values increase this year across the Group’s markets, albeit at a slower pace. Future increases are likely to be “more reliant on rental growth” and “portfolio management than further yield compression”.

At 30 Lombard Street, EC3 strip out works have completed and negotiations with the selected contractor and other enabling discussions are due to complete shortly. Works are set to commence on a speculative basis to deliver this high quality 58,000 sqft office scheme by mid 2018.

The REIT’s drawn debt increased by £30.5m over the period to £122.0 million predominantly due to acquisitions and development expenditure.

Headroom of £53.0m remains available to total facilities of £175.0m (secured with the refinancing of loan facilities in May 2015) to fund development projects and further acquisitions.

This was posted in Bdaily's Members' News section by Ellen Forster .