TIDMKCR
RNS Number : 5404U
KCR Residential REIT PLC
29 March 2023
29 March 2022
KCR Residential REIT plc
("KCR" or the "Company")
Interim Results
KCR Residential REIT plc, the residential REIT group, is pleased
to announce its unaudited consolidated results for the six months
to 31 December 2022.
The half year to 31 December 2022 has seen continued growth in
the business in an operating environment that has been challenging
with continuing interest rate increases, cost of living pressure
and supply chain disruption.
Progress continues to be made to transition the business. The
strategy, as outlined in last year's annual report, remains
unchanged, to:
-- improve the rental revenue from the existing properties;
-- upgrade the overall portfolio quality;
-- explore the development opportunity within the portfolio; and
-- focus on reducing costs.
Revenue growth continues to be driven from the work done on
repositioning the portfolio via completion of a holistic
refurbishment programme to materially lift the standard of the
rental product we are offering and implementation of the Cristal
Apartments operating model.
Operational highlights
-- revenue for the half year increased 30% to GBP789k (2021:
GBP605k), with revenue growth driven predominantly by Coleherne
Road and the ongoing conversion of Deanery Court to the Cristal
Apartments operating model; and
-- portfolio level occupancy has remained strong over the half
year with rental increases continuing to be achieved at renewals /
re-letting. As the Cristal Apartments operating model continues to
be rolled out we expect more volatility in occupancy levels within
the properties operated on this basis, however we envisage overall
rental levels will be higher notwithstanding this.
We continue to make progress to create a stable platform that
can be successfully scaled up.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
For further information please contact:
KCR Residential REIT plc info@kcrreit.com
Russell Naylor, Executive Director Tel: +44 (0)20 7628 5582
Cairn Financial Advisers LLP (Nomad) Tel: +44 (0)20 7213 0880
James Caithie / James Lewis / Louise
O'Driscoll
Zeus Capital Limited (Broker) Tel: +44 (0)20 7614 5000
Louisa Waddell
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHSED 31 DECEMBER 2022
KCR Residential REIT Plc ("KCR" or the "Company") and its
subsidiaries (together the "Group") operate in the private rented
residential investment market. The Company acquires properties that
are rented to private tenants and also owns and operates a freehold
portfolio of retirement living accommodation where most of the
properties have been sold on long leases.
The half year to 31 December 2022 has seen continued growth in
the business in an operating environment that has been challenging
with continuing interest rate increases, cost of living pressure
and supply chain disruption.
Fundamentals for UK residential property remain sound
notwithstanding the impact of increasing interest rates. The Group
continues to look for acquisitions on a disciplined basis and there
are signs emerging that opportunities may arise over the next
twelve months to make acquisitions on more attractive metrics than
have been available recently.
The Group's overall objective remains to grow the size of its
residential portfolio and optimise the performance from the
existing assets whilst controlling costs to achieve the ability to
pay dividends.
Progress continues to be made to transition the business. The
strategy, as outlined in last year's Annual Report, remains
unchanged, to:
-- improve the rental revenue from the existing properties;
-- upgrade the overall portfolio quality;
-- explore the development opportunity within the portfolio;
and
-- focus on reducing costs.
Revenue growth for the half year has been driven by a
combination of the work completed to date on modernising and
improving the standard of the property portfolio and the conversion
of the Deanery Court property to the Cristal Apartments operating
model which commenced during the June 2022 quarter.
Occupancy rates across the portfolio during the period remained
strong with rental increases being achieved in most instances at
renewal.
Refurbishment works in respect of the two basement flats and all
external areas at Coleherne Road are ongoing and are expected to be
fully complete by the end of April 2023.
The conversion of the Deanery Court property to the Cristal
Apartments operating model is progressing well and early operating
results are promising. Full conversion to the Cristal Apartments
"walk in walk out" operating model is on track to be completed this
financial year.
Increase in administration expenses during the half
predominantly relate to:
-- higher operating costs associated with the conversion of
Deanery Court to the Cristal Apartments operating model;
-- repairs and maintenance at Ladbroke Grove; and
-- increased depreciation expenses relating to the property,
plant equipment, fixtures and fittings associated with operating
the properties on a "walk in walk out" basis.
Whilst the majority of the Group debt remains on fixed rates,
the Secure Trust facility is floating rate and consequently the
comparatively higher finance costs incurred in the period reflect
the effect of interest rate rises. In the near term it is likely
financing costs for this facility will continue to increase.
Since the end of the period under review, the Group acquired an
additional flat within Heathside. This will be refurbished with a
target for completion by the end of June 2023. On completion this
will deliver incremental revenue growth to the rental income
generated from this property.
DIRECTOR'S REPORT
FOR THE SIX MONTHSED 31 DECEMBER 2022
We are pleased to report on the progress of the Group in the
six-month period to 31 December 2022.
Revenue growth continues to be driven from the work done on
repositioning the portfolio via completion of a holistic
refurbishment programme to materially lift the standard of the
rental product we are offering and implementation of the Cristal
Apartments operating model.
Operational highlights
-- revenue for the half year increased 30% to GBP789k (2021:
GBP605k), with revenue growth driven predominantly by Coleherne
Road and the ongoing conversion of Deanery Court to the Cristal
Apartments operating model; and
-- portfolio level occupancy has remained strong over the half
year with rental increases continuing to be achieved at renewals /
re-letting. As the Cristal Apartments operating model continues to
be rolled out we expect more volatility in occupancy levels within
the properties operated on this basis, however we envisage overall
rental levels will be higher notwithstanding this.
Full completion of Coleherne Road works and the implementation
of the Cristal Apartments operating model at Deanery Court are
expected to continue to underpin revenue growth over the next 12
months.
Focus for the half year has been on progressing works at
Coleherne Road and the implementation of the conversion of Deanery
Court to the Cristal Apartments operating model.
As Deanery Court flats have been taken back they have been
lightly refurbished and fully furnished in order to be let on a
walk in, walk out basis. Full implementation is on track to be
completed by June this year.
We continue to make progress to create a stable platform that
can be successfully scaled up.
Property Portfolio
No acquisitions were completed during the half year.
Since the period end, an additional one- bedroom flat within
Heathside has been acquired. As with all of the other acquisitions
within this property, the flat is very tired and poorly presented.
Full refurbishment of this flat is planned to be completed during
the June quarter of 2023. Contractor availability and supply chain
issues are expected to impact on the timing for completion of
refurbishment works, however we believe completion during the June
quarter is achievable.
Planning works for Ladbroke Grove continue to be progressed, an
objective which is key to improving the operational performance for
this asset. As outlined in the full year report, the tired
condition of this property is resulting in increasing repairs and
maintenance expenditure which is expected to continue, pending a
more holistic refurbishment works programme.
KCR is continuing to progress the implementation of two
operating lines, clearly identifiable by brand, property quality
and letting strategy.
1. Cristal Apartments. Residential apartments, finished to a
high modern specification, fully furnished and let on a Walk in
Walk Out (WIWO) basis for a frictionless and flexible letting
experience. Rental contracts may be from one week to multi-year;
and
2. Osprey Retirement Living. 4* retirement living property
rented on flexible letting packages customised to suit tenant
needs. All rentals are on assured shorthold tenancies for a minimum
period of six months.
1. Cristal Apartments (WIWO letting strategy)
The repositioning of the Coleherne Road property into a modern,
high quality, well presented product reflects the standard the
Cristal brand represents. This product has been well received by
the market and has been a core driver of revenue growth since the
initial eight flats were completed and let up.
On full completion of all works Cristal branding will be added
to the property and we expect let up of the last two flats to
contribute to revenue growth during the June quarter of 2023 and
the 2024 financial year.
Conversion of the Deanery Court property in Southampton to the
Cristal Apartments model is ongoing. Whilst it is still early days,
the initial signs are promising and we expect this property to be a
key driver of further revenue growth over the next 12 months.
The intention is also to reposition the Ladbroke Grove portfolio
as a Cristal branded product once planning outcomes have been
finalised. This is expected to result in both improved revenue and
a substantive reduction in ongoing repairs and maintenance.
Coleherne Road - this property comprises ten studio and
one-bedroom flats. The property has been repositioned to a
materially higher standard and works are now fully completed in
eight of the ten flats. Works are ongoing to complete refurbishment
of the last two flats and all external areas. The completed
apartments have produced strong rental uplifts and have operated at
close to 100% occupancy levels since letting up during the December
2021 quarter.
Ladbroke Grove - this portfolio comprises 16 one and two bedroom
flats in three buildings which remain 100% occupied. The flats have
been lightly refurbished as tenants vacate and then re-let in the
private rental market. The overall tired condition of the property
is reflected in ongoing and increasing repairs and maintenance
expenditure. Planning works are being progressed and our intention
is to complete a holistic refurbishment programme to reposition
this product to the Cristal Apartments operating model.
Deanery Court (Southampton) - this property comprises 27 two
bedroom residential apartments and is in the process of being
converted to the Cristal Apartments operating model. As the
apartments are taken back they are lightly refurbished and fully
furnished and then marketed under the Cristal Apartments brand. As
at 31 December 2022, 24 of the 27 apartments had been taken back
with 21 of these fully converted. Full conversion of this property
is on track to occur during the 2023 financial year. We expect
rental growth from this property to be a key driver of revenue
growth for the Group over the next 12 months.
2. Osprey retirement living (4* retirement apartments)
The Osprey portfolio consists of 159 flats and 13 houses let on
long leases in six locations, together with an estate consisting of
30 freehold cottages in Marlborough where Osprey delivers estate
management and sales services.
The key asset in the portfolio is the freehold block at
Heathside, Golders Green comprising 37 one and two bedroom
apartments with 10 (nine as at 31 December 2022) of the apartments
owned by the Group and 27 held on a long leasehold basis. The
strategy to selectively acquire long leasehold apartments within
the block, refurbish them to a high standard and let them on an
assured tenancy basis has been successful and has delivered strong
rental returns for the Group.
Financial Performance
The half year to 31 December 2022 reflects the outcome of strong
revenue growth driven by Coleherne Road and conversion of the
Deanery Court property to the Cristal Apartment operating model
which commenced during the June 2022 quarter.
Cost of sales and administration expenses both increased during
the half primarily due to higher costs associated with operating
Deanery Court under the Cristal Apartment model, higher
depreciation charges associated with the investment in plant,
equipment, fixtures and fittings and ongoing and increasing repairs
and maintenance at Ladbroke Grove.
-- Revenue for the half year increased 30% to GBP789k (2021:
GBP605k)
-- Gross profit as a percentage of revenue reduced to 84.58%
(2021: 96.88%) reflecting the higher costs associated with the
Cristal Apartments operating model. In absolute terms overall gross
profit increased by 13.8% to GBP667k (2021: GBP586k).
-- Operating loss before separately disclosed items of GBP31k
(2021: Profit GBP136k). Prior year included a positive contribution
from revaluations of GBP145k which primarily accounts for the
negative variance for the comparative period. Balance relates to
increases in depreciation charges, repairs and maintenance at
Ladbroke Grove and higher operational costs associated with
implementing the Cristal Apartments model.
-- Operating loss GBP184k (2021: Profit GBP102k) after
refurbishment costs of GBP153k primarily relating to the Coleherne
Road property.
-- Loss for the period was GBP451k (2021: GBP254k) and loss per
share was 1.08p (2021: .77p).
The value of KCR's property portfolio was slightly higher than
the comparative period at GBP24.6m (2021: GBP24.4m), reflecting an
additional acquisition completed during the June 2022 half year.
The Group's current assets reduced to GBP2.2m (2021: GBP2.9m)
reflecting reduction in cash used to fund operating losses and
support ongoing refurbishment work programmes. Secured bank
borrowings increased marginally to GBP13.3m (2021: GBP13.2m)
following completion of refinancing during the June 2022 half
year.
Total assets reduced to GBP26.98m (2021: GBP27.3m) reflecting
the reduction in cash used to support Group operating activities.
Net assets per share reduced to 31.74p (2021: 33.03p). Following
completion of the Coleherne Road works this property will be
revalued.
The Group continues to be cashflow negative, however it is
continuing to work towards achieving a cash neutral position from
improving operating performance from the existing portfolio. Costs
continue to be actively managed as we work towards building a
stable platform that can be scaled up. At 31 December 2022, the
Group had cash balances totalling GBP1.89m (2021: GBP2.8m).
Through the period the Company remained a REIT and has complied
with REIT rules.
KCR RESIDENTIAL REIT PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 DECEMBER 2022 (unaudited)
Six months Six months
ended 31 ended 31 Year ended
December December 30 June
2022 2021 2022 (audited)
Notes GBP GBP GBP
Revenue 2 788,740 604,583 1,280,770
Cost of sales (121,658) (18,881) (50,525)
------------ ------------- ----------------
Gross profit 667,082 585,702 1,230,245
Administrative expenses (702,371) (599,322) (1,232,932)
Other operating income 3,920 4,900 -
Fair value through profit and
loss - Revaluation of investment
properties - 145,000 343,300
Operating (loss)/profit before
separately disclosed items (31,369) 136,280 340,613
Costs associated with refinancing 3 - - (68,234)
Costs associated with refurbishment
of investment properties 3 (152,925) (34,682) (101,670)
------------ ------------- ----------------
Operating (loss)/profit (184,294) 101,598 170,709
Finance costs (268,383) (355,866) (512,811)
Finance income 1,354 3 21
------------ ------------- ----------------
Loss before taxation (451,323) (254,265) (342,081)
Taxation - - -
------------ ------------- ----------------
Loss for the period/year (451,323) (254,265) (342,081)
------------ ------------- ----------------
Total comprehensive expense for the
period/year (451,323) (254,265) (342,081)
============ ============= ================
Loss per share expressed in pence 4
per share
Basic (1.08) (0.77) (0.85)
Diluted (0.92) (0.33) (0.41)
============ ============= ================
KCR RESIDENTIAL REIT PLC (REGISTERED NUMBER: 09080097)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2022 (unaudited)
31
31 December December 30 June 2022
2022 2021 (audited)
Notes GBP GBP GBP
Non-current assets
Property, plant and equipment 210,896 14,477 54,954
Investment properties 5 24,605,300 24,407,000 24,605,300
24,816,196 24,421,477 24,660,254
------------ ------------ -------------
Current assets
Trade and other receivables 277,746 67,805 185,532
Cash and cash equivalents 1,886,225 2,807,282 2,519,346
------------ ------------ -------------
2,163,971 2,875,087 2,704,878
------------ ------------ -------------
Total assets 26,980,167 27,296,564 27,365,132
============ ============ =============
Equity
Shareholders' equity
Share capital 6 4,166,963 4,166,963 4,166,963
Share premium 14,941,898 14,941,898 14,941,898
Capital redemption reserve 344,424 344,424 344,424
Retained earnings (6,229,271) (5,690,133) (5,777,948)
------------ ------------ -------------
Total equity 13,224,014 13,763,152 13,675,337
------------ ------------ -------------
Non-current liabilities
Interest bearing loans and
borrowings 13,274,574 13,164,783 13,274,574
------------ ------------ -------------
Current liabilities
Trade and other payables 481,579 368,629 415,221
Interest bearing loans and - - -
borrowings
481,579 368,629 415,221
------------ ------------ -------------
Total liabilities 13,756,153 13,533,412 13,689,795
------------ ------------ -------------
Total equity and liabilities 26,980,167 27,296,564 27,365,132
============ ============ =============
Net asset value per share
(pence) 31.74 33.03 32.82
============ ============ =============
KCR RESIDENTIAL REIT PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2022 (unaudited)
Capital
redemption Retained
Share capital Share premium reserve earnings Other reserves Total equity
GBP GBP GBP GBP GBP GBP
Balance at 1
July 2021 2,816,963 13,594,317 344,424 (5,435,868) - 11,319,836
Changes in equity
Transactions
with owners:
Issue of share
capital 1,350,000 1,347,581 - - - 2,697,581
Total transactions
with owners: 1,350,000 1,347,581 - - - 2,697,581
-------------- -------------- ------------ ------------ --------------- -------------
Total comprehensive
expense - - - (254,265) - (254,265)
Balance at 31
December 2021 4,166,963 14,941,898 344,424 (5,690,133) - 13,763,152
-------------- -------------- ------------ ------------ --------------- -------------
Changes in equity
Transactions
with owners:
Issue of share - - - - - -
capital
-------------- -------------- ------------ ------------ --------------- -------------
Total transactions - - - - -
with owners: -
-------------- -------------- ------------ ------------ --------------- -------------
Total comprehensive
expense - - - (87,815) (87,815)
-------------- -------------- ------------ ------------ --------------- -------------
Balance at 30
June 2022 4,166,963 14,941,898 344,424 (5,777,948) - 13,675,337
-------------- -------------- ------------ ------------ --------------- -------------
Changes in equity
Transactions
with owners:
Issue of share - - - - - -
capital
-------------- -------------- ------------ ------------ --------------- -------------
Total transactions
with owners: - - - - - -
-------------- -------------- ------------ ------------ --------------- -------------
Total comprehensive
expense - - - (451,323) - (451,323)
-------------- -------------- ------------ ------------ --------------- -------------
Balance at 31
December 2022 4,166,963 14,941,898 344,424 (6,229,271) - 13,224,014
============== ============== ============ ============ =============== =============
KCR RESIDENTIAL REIT PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 DECEMBER 2022 (unaudited)
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2022 2022
2021 (audited)
GBP GBP GBP
Cash flows from operating activities
Loss for the period/year from continuing
operations (451,323) (254,265) (342,081)
Adjustments for
Depreciation charges 31,114 8,900 21,437
Loss on disposal of investment property - 5,000 5,000
Revaluation of investment properties - (145,000) (343,300)
Finance costs 268,383 355,866 512,811
Finance income (1,354) (3) (21)
Increase in trade and other receivables (92,214) (14,430) (132,157)
Increase/(decrease) in trade and
other payables 66,358 (78,595) (32,003)
Cash used in operations (179,036) (122,527) (310,314)
Interest paid (268,383) (355,866) (512,811)
Net cash used in operating activities (447,419) (478,393) (823,125)
------------- ------------- ------------
Cash flows from investing activities
Purchase of property, plant & equipment (187,056) - (53,013)
Purchase of investment properties
(including capital expenditure on
current properties) - (285,000) (285,000)
Proceeds from sale of investment
properties - 280,000 280,000
Interest received 1,354 3 21
------------- ------------- ------------
Net cash used in investing activities (185,702) (4,997) (57,992)
------------- ------------- ------------
Cash flows from financing activities
Loan repayments in period - (3,443,777) (5,020,248)
New loans in period - 3,969,953 5,656,215
Proceeds from share issue - 2,697,581 2,697,581
------------- ------------- ------------
Net cash from financing activities - 3,223,757 3,333,548
------------- ------------- ------------
(Decrease)/increase in cash and cash
equivalents (633,121) 2,740,367 2,452,431
------------- ------------- ------------
Cash and cash equivalents at beginning
of period/year 2,519,346 66,915 66,915
============= ============= ============
Cash and cash equivalents at end
of period/year 1,886,225 2,807,282 2,519,346
============= ============= ============
KCR RESIDENTIAL REIT PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 31 DECEMBER 2022 (unaudited)
1. Basis of preparation
The Company is registered in England and Wales. The consolidated
interim financial statements for the six months ended 31 December
2022 comprise those of the Company and subsidiaries. The Group is
primarily involved in UK property ownership and letting.
Statement of compliance
This consolidated interim financial report has been prepared in
accordance with the recognition and measurement principles of UK
adopted International Accounting Standards. AIM-quoted companies
are not required to comply with IAS 34 Interim Financial Reporting
and the Group has taken advantage of this exemption. Selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in
financial performance and position of the Group since the last
annual consolidated financial statements for the year ended 30 June
2022. This consolidated interim financial report does not include
all the information required for full annual financial statements
prepared in accordance with International Financial Reporting
Standards. The financial statements are unaudited and do not
constitute statutory accounts as defined in section 434(3) of the
Companies Act 2006.
A copy of the audited annual report for the year ended 30 June
2022 has been delivered to the Registrar of Companies. The
auditor's report on these accounts was unqualified and did not
contain statements under s498(2) or s498(3) of the Companies Act
2006.
This consolidated interim financial report was approved by the
Board of Directors on 28 March 2023.
Significant accounting policies
The accounting policies applied by the Group in this
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements for the year
ended 30 June 2022.
Basis of consolidation
The interim financial statements include the financial
statements of the Company and its subsidiary undertakings. The
subsidiaries included within the consolidated financial statements,
from their effective date of acquisition, are K&C (Newbury)
Limited, K&C (Coleherne) Limited, K&C (Osprey) Limited, KCR
(Kite) Limited and KCR (Southampton) Limited.
Going Concern
The Directors have adopted the going-concern basis in preparing
the interim financial statements.
The Directors have concluded that it remains appropriate to
prepare these interim financial statements on a going concern
basis.
2. Operating segments
The Group is involved in UK property ownership and letting and
is considered to operate in a single geographical and business
segment.
Revenue analysed by class of business:
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022 (audited)
GBP GBP GBP
Rental income 590,503 422,219 933,475
Management fees 53,434 42,194 89,801
Resale commission 61,778 56,075 102,055
Ground rents 10,405 10,595 13,314
Leasehold extension income 72,620 73,500 133,500
Other income - - 8,625
------------- ------------- ----------------
788,740 604,583 1,280,770
============= ============= ================
3. Operating (loss)/profit
The (loss)/profit before taxation is stated after charging:
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022 (audited)
GBP GBP GBP
Costs associated with refinancing - - 68,234
Costs of refurbishment of investment
properties 152,925 34,682 101,670
Depreciation of property, plant
and equipment 31,114 8,900 21,437
Directors' remuneration 76,500 73,624 182,125
During the six months ended 31 December 2022, the Group incurred
costs of GBP152,925 (GBP34,682 - December 2021) (GBP101,670 - June
2022) relating to major refurbishment of properties at Coleherne
Road, London and Ladbroke Grove, London.
During the six month period, the Company paid Naylor Partners, a
business owned by Russell Naylor, fees of GBP24,000 (December 2021
- GBP24,000).
The directors are considered to be key management personnel.
4. Basic and diluted loss per share
Basic
The calculation of loss per share for the six months to 31
December 2022 is based on the loss for the period attributable to
ordinary shareholders of GBP451,323 divided by a weighted average
number of ordinary shares in issue.
The weighted average number of shares used for the six months
ended 31 December 2022 was 41,669,631 (June 2022 - 40,196,318)
(December 2021 - 33,012,022).
Diluted
The calculation of loss per share for the six months to 31
December 2022 is based on the loss for the period attributable to
ordinary shareholders of GBP451,323 divided by a weighted average
number of ordinary shares in issue, adjusted for dilutive share
options held by Torchlight. The Torchlight share options lapsed in
August 2022.
The weighted average number of shares used for the six months
ended 31 December 2022 was 48,888,653 (June 2022 - 82,882,619)
(December 2021 - 77,569,631).
5. Investment properties
Six months Six months
ended 31 ended 31 Year ended
December December 30 June
2022 2021 2022 (audited)
GBP GBP GBP
At start of period/year 24,605,300 24,262,000 24,262,000
Additions - 285,000 285,000
Disposals - (285,000) (285,000)
Revaluations - 145,000 343,300
----------- ----------- ----------------
At end of period/year 24,605,300 24,407,000 24,605,300
=========== =========== ================
Investment properties were valued by professionally qualified
independent external valuers at the date of acquisition and were
recorded at the values that were attributed to the properties at
acquisition date. The investment properties were independently
valued at, or within three months of the financial year ended 30
June 2022. The Directors have further considered the values as at
31 December 2022 and concluded that they remain appropriate.
5. Investment properties - continued
Fair value is based on current prices in an active market for
similar properties in the same location and condition. The current
price is the estimated amount for which a property could be
exchanged between a willing buyer and willing seller in an arm's
length transaction after proper marketing wherein the parties had
each acted knowledgeably, prudently and without compulsion.
Valuations are based on a market approach which provides an
indicative value by comparing the property with other similar
properties for which price information is available. Comparisons
have been adjusted to reflect differences in age, size, condition,
location and any other relevant factors.
The fair value for investment properties has been categorised as
a Level 3 inputs under IFRS 13.
The valuation technique used in measuring the fair value, as
well as the significant inputs and significant unobservable inputs
are summarised in the following table -
Fair Value Valuation Technique Significant Significant Unobservable
Hierarchy Inputs Used Inputs
Level Income capitalisation Adopted gross 3.50% - 6.50%
3 and or capital value yield GBP336 - GBP1,355
on a per square foot Adopted rate
basis per square foot
---------------------- ----------------- -------------------------
6. Share capital
31 December 31 30 June
2022 December 2022 (audited)
Allotted, issued and fully paid: 2021
Nominal
Number: Class: value: GBP GBP GBP
41,669,631 Ordinary GBP0.10 4,166,963 4,166,963 4,166,963
4,166,963 4,166,963 4,166,963
============ ========== ================
At 1 July 2022, the Company had 41,669,631 Ordinary shares of
GBP0.10 each in issue. The Ordinary shares carry no rights to fixed
income.
7. Related Party Transactions
Details of remuneration and fees paid to directors are disclosed
at note 3 of these interim financial statements.
8. Post Balance Sheet Events
Since the balance sheet date, the Group has purchased a further
flat at Heathside, London for GBP287,500.
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END
IR BCGDXUXDDGXI
(END) Dow Jones Newswires
March 29, 2023 02:00 ET (06:00 GMT)
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