Taliesin Property Fund posts big jump in full year profit

AIM-listed Taliesin Property Fund, which focuses on the Berlin residential market, reported a big jump in profit for the year to the end of December.

Pre-tax profit rose to €44.7m from €17.4m in 2014 and the company’s portfolio valuation as at 31 December was €262.5m compared with €212.1m the previous year.

Taliesin’s adjusted net asset value per share rose to €31.44 from €22.00 at the end of December 2014 and total operating revenue edged up to €14.4m from €13.9m.

Chairman Nigel Le Quesne said: “The initial foray into the Berlin residential market was predicated very much on the value proposition and a catalyst for change being improving demographics leading to a shortage of supply and ultimately higher prices.

“It is particularly pleasing to see this view become reality. What has also changed is the increased scarcity of high quality yielding assets, impacting what the market is prepared to pay for them and also what banks are ready to lend against them.”

Le Quesne, who expressed optimism about the prospect of future capital return to shareholders, highlighted a market improvement in the real estate financing market, both in terms of the available loan-to-value on buildings and to interest costs.

He said the dramatic decline in prevailing interest rates and hence the mortgage banks' own cost of funds has transformed the market for borrowers such as Taliesin.

At 1242 BST, Taliesin shares were up 1% to 2,799p.