IN BRIEF: KCR Residential REIT’s Net Asset Value Falls on Inflation



KCR Residential REIT PLC – a residential-focused real estate investment trust – posted a lower net asset value per share due to inflationary pressures and supply chain disruptions.

The net asset value per share on June 30 fell to 32.82 pence from 40.18 pa the previous year.

Meanwhile, the pre-tax loss for the year ending June 30 narrowed to £342,081 from £924,234 due to lower renovation costs. Revenue rose 24% to £1.3m from £1.0m. Costs associated with renovating investment properties reduce to £101,670 from £844,200.

The company is not declaring a dividend as it focuses on growing its net asset value per share.

Looking ahead, Executive Director Russell Naylor comments: “While the near-term focus remains on reducing costs and improving the operational performance of existing assets, the group continues to explore the purchase of residential real estate assets capable of supporting an increase in income. yield. To achieve this, the group may need to raise more capital and it works closely with funding sources, both equity and debt providers, to achieve this goal.

Current share price: 14.60 pence, down 2.7% on Friday

Change over 12 months: decrease of 39%

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