St. Modwen Properties PLC (LSE: SMP), the UK’s leading regeneration specialist, announces its half year results for the six months to 31st May 2013.

Financial Highlights:

  • 11% increase in profit before all tax to £38.8m (H1 2012: £34.9m)
  • 5% increase in shareholders’ equity NAV per share in the first six months to 263p (Nov 2012: 251p per share) and EPRA NAV up 4% to 282p per share (Nov 2012: 272p)
  • Net valuation gain of £23m (H1 2012: £21m) including added value gains of £18m (H1 2012: £35m) and market driven valuation gains of £5m (H1 2012: £14m loss) 
  • Realised property profits of  £16.1m (H1 2012: £16.6m) 
  • Net rental income of £18.2m (H1 2012: £18.3m) 
  • Successful equity placing in March 2013 raising gross proceeds of £49m
  • Continued reduction in gearing to 55% (Nov 2012: 71%. Comparative adjusted for equity placing would be 57%)
  • 10% increase in interim dividend to 1.33p per share (H1 2012: 1.21p)

Operational Highlights:

  • Active development programme for 2013; construction of Swansea University’s Science and Innovation Campus started in May 
  • Continue to work towards the submission of a planning application by the end of 2013 for the New Covent Garden Market redevelopment, with good progress achieved to date 
  • Indications of increased investment interest in secondary commercial property with the successful sale of £35m of mature commercial assets at or above book value during the first six months of the year
  • Positive outlook for residential land activity, with good reservation rates already achieved and strong on-going demand at an increased number of sales outlets, an expanding pipeline of developments and greater demand for our land 
  • Proactive asset management continues to generate value 

Bill Oliver, Chief Executive of St. Modwen, commented: “To be announcing a strong set of half year results and further growth in the net asset value of the Company is positive and a testament to our clear strategy and robust business model. In addition, these results demonstrate the strength and continued growth of our residential and London and South East portfolios which underpin the market valuation gains that have been achieved in the period. 

“All these factors, coupled with our active development pipeline and our ability to extract value from our properties through strong asset management, continue to provide an excellent platform from which we can deliver attractive returns and propose a 10 per cent increase in our dividend. We look forward to building on this excellent start to the year and to a successful outcome for 2013 as a whole.”