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This Reit yields 9% and offers upside potential

It trades on a deep discount to NAV, but liquidity is an issue
May 1, 2024
  • NAV per share down 5.5 per cent to 1,022p
  • Dividend per share of 56p held
  • 9.3 per cent dividend yield
  • 41 per cent discount to NAV

Highcroft Investments (HCFT: 600p), a real estate investment trust (Reit), has released its first results since delisting its shares from the London Stock Exchange and transferring the company’s listing to The International Stock Exchange (TISE).

The company owns a diversified portfolio across the warehouse, retail warehouse, leisure, office and retail sectors which boasts 100 per cent rent collection and 94 per cent occupancy rate. However, as has been the case for almost all property companies, the upward movement in investment yields had a negative impact on valuations last year. Highcroft booked a negative £4.5mn valuation movement, albeit the 5.4 per cent like-for-like decline was slightly better than that seen for the all-property MSCI index.

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