UKCPT sees slightly lower NAV return against volatile backdrop

UK Commercial Property Trust reported a net asset value per share total return of 3.8% in 2016 against a volatile market background.

UKCPT said while this was a “slightly lower return than seen in previous years” it demonstrates the trust's strong defensive qualities.

“This strong performance was delivered despite pressures on the property sector following a write down in values when the government increased stamp duty in the first half of 2016 and market uncertainties resulting from the EU referendum, including the temporary 'gating' of open ended property funds due to unprecedented redemption requests,” the company said.

The total dividend was held at 3.68p a share.

UKCPT said the it expected the Brexit process to dominate the political and economic outlook for 2017.

“Additionally, the possibility of changes in the political landscape elsewhere in the world is expected to command the headlines,” it added.

“Notwithstanding the strength of the UK economy since the EU referendum, and the Bank of England’s recent upgrade of its GDP growth forecast for 2017 to 2%, the same as that achieved in 2016, there will continue to be uncertainty at home and abroad.”