Real estate investment trust A&J Mucklow saw adjusted net asset value (NAV) per share ease a fraction in the second half of 2010, which it attributed to a lull in the investment market.

Adjusted NAV per share at the end of 2010 stood at 306p, down from 308p at the end of June 2010, as a result of a small decline in property values. Net assets stood at £184.8m at the end of the year, down from £185.9m six months earlier.

Reported pre-tax profit tumbled to £4.8m from £18.8m at the interim stage, but last year's performance was boosted by an £11.9m valuation gain, whereas this time round the company took a £1m hit on its portfolio valuation. Stripping out the valuation gain and last year's £1.6m contribution from trading profit, underlying profit before tax improved to £5.7m from £5.5m.

Net rental income rose to £8.5m from £7.9m the year before. Net debt climbed to £56.8m from £49.7m, pushing gearing up to 31% from 27% a year earlier.

The effective yield on the property portfolio dipped to 8.3% from 8.4% at the interim stage in 2009, but the occupancy rate remained steady at 92%, supported by high tenant retention and a reduction in the number of insolvencies.

"We have already seen a slight improvement in the occupier markets since November and are aware of a number of serious requirements in the market. We are hopeful that tenant demand will continue for the rest of this year enabling us to let some of our vacant space and start pre-let development again," said company chairman Rupert Mucklow.

"We remain positive about prospects for the full year and intend to continue the same strategy of keeping voids and operating costs under control and pursuing suitable investment opportunities," Mucklow added.

The interim dividend has been lifted to 8.27p from 8.03p.

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