Caledonian Trust PLC - Edinburgh-based property investment and development company - Notes lower net asset value but says demand in education is at highest level ever. NAV per share at June 30 falls 5.3% to 197.3 pence from 208.4p a year prior. Turns to an annual pretax loss of £1.3 million in the year to June 30, from a profit of £460,000. Administrative expenses more than double to £887,000 from £444,000.
‘Demand for higher education is the highest it has ever been, and this is translating into strong occupational demand for operational purpose built student accommodation, which is likely to translate into a period of sustained rental growth. The wider economic headwinds are placing some pressure on the sector. However, with several portfolio deals currently in the market, and the Student Roost portfolio transaction proceeding investment volumes in 2022 could still mark a new record,’ the company says.
However, it highlights that demand for office space was ‘is being spectacularly reduced by ’hybrid’ working, or working from home. The extent of this change is substantial but not yet quantifiable, although in certain main office areas office occupancy rates, while recovering, continue below 50%. A recent survey concluded that the long-term reduction in space needed would be between 20% and 40%.’
Further, Caledonian says that rental growth in the industrial sector continues to be high.
Current stock price: 159.99 pence, up 10% on Wednesday
12-month change: up 33%
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