Business
Trading Update
Trading Update.
About this update from Kcr Residential Reit Plc
[{"type":"text","content":"\n \nRNS Number : 0619F K&C REIT PLC 15 May 2017 \n\n15 May 2017\nK&C REIT plc\n(\"K&C\" or the \"Company\")\nTrading update\nEstimated 100% increase in gross income from Osprey residential portfolio \nK&C REIT plc (AIM: KCR), the residential real estate investment trust group, is pleased to provide an update on its trading and operations in its Osprey portfolio.\nHighlights\n· Following K&C's active management over the first 12 months of ownership of the Osprey residential portfolio:\no year-on-year turnover from this portfolio is projected to more than double\no year-one return (net of operating costs) on cash investment is expected to be 15 per cent\nK&C (Osprey) Limited \nThe Company is pleased to report that, since acquiring the Osprey freehold retirement portfolio in May 2016, the asset has outperformed expectations, generating a return after operating costs of 15 per cent on the cash invested in the first 12 months since acquisition. Osprey's revenue has more than doubled compared to the previous twelve-month period under its previous ownership, following active management that includes significantly improved marketing activities.\nThe Osprey portfolio was acquired for £1.6m, including three million ordinary shares at 10p per share. The portfolio consists of 254 flats, 79 houses and 13 commercial units, of which K&C owns the freehold of 159 flats and 13 houses. Since acquisition, K&C has made significant improvements to how the Osprey portfolio is managed, which has led to a much-improved asset performance. The Company is also looking at opportunities to acquire property leaseholds within Osprey in order to build further value and generate yield. \nStrategy\nK&C is continuing to broaden its activities in the residential space. The Company is looking at a number of opportunities to significantly extend its portfolio within this area which will support its target of delivering growth in net asset value and providing a sustainable, long term dividend yield. \nDominic White, Chief executive, commented: \"The performance of the Osprey portfolio, since its acquisition, demonstrates K&C's ability to identify opportunities within the residential sector and significantly enhance asset p...