Foreign investment boosts F&C ComProp's first half earnings

Investment firm F&C Commercial Property Trust announced on Wednesday that despite challenges present in the immediate wake of the Brexit referendum in June 2016, it managed to deliver positive total returns.

F & C said in its half yearly results that it saw capital values return to pre-referendum levels by 30 June as the market, specifically in London, was bolstered by strong interest from international buyers and purchases from local authorities.

In addition to the increase in capital that created a 5.1% ungeared total return from its property portfolio, rental growth within the firm was flat or slightly positive across most of the market segments.

The trust reported a net asset value (NAV) of 139.4p, a 3.9p increase on its 31 December figure of 135.5p as its total assets grew to £1.4bn.

Management noted the property market had benefited from even modest levels of economic growth and the recent low-interest rates set by the Bank of England.

Annualised dividend yields were down to 4.1% from what it posted at the same time last year, although earnings per share for the half were up an impressive 110% higher to 6.9p.

As of 0840 BST shares in the trust were ahead just 0.17% on the day at 149.26p.