K&C says Osprey portfolio outperforming expectations

Residential real estate investment trust group K&C REIT updated the market on its trading and operations in its Osprey portfolio on Monday, after its “active management” in the first 12 months of ownership of the residential portfolio.

The AIM-traded firm said year-on-year turnover from the portfolio was projected to more than double, with year-one return - net of operating costs - on cash investment expected to be 15%.

It explained that, since acquiring the Osprey freehold retirement portfolio in May 2016, the asset had outperformed expectations, generating a return after operating costs of 15% on the cash invested in the first 12 months since acquisition.

Osprey's revenue had more than doubled compared to the previous 12-month period under its previous ownership, following active management that included “significantly improved” marketing activities, the K&C board said.

The Osprey portfolio was acquired for £1.6m, including three million ordinary shares at 10p per share.

K&C said the portfolio consisted of 254 flats, 79 houses and 13 commercial units, of which K&C owned the freehold of 159 flats and 13 houses.

Since acquisition, K&C had made “significant” improvements to how the Osprey portfolio 2as managed, which it said led to a much-improved asset performance.

The company was also looking at opportunities to acquire property leaseholds within Osprey in order to build further value and generate yield.

Looking ahead, K&C said it was continuing to broaden its activities in the residential space.

The company was looking at a number of opportunities to “significantly extend” its portfolio within this area, which would support its target of delivering growth in net asset value and providing a sustainable, long term dividend yield.

“The performance of the Osprey portfolio, since its acquisition, demonstrates K&C's ability to identify opportunities within the residential sector and significantly enhance asset performance through improved management and strategy,” said chief executive Dominic White.

“The company is currently looking at several targets across the residential space where it believes it can deploy its skills to boost yields, and looks forward to updating the market in due course.”