British real estate investment trust McKay Securities saw pre-tax profits move ahead in its most recent trading year as a result of a positive revaluation of its portfolio and increased rental income.
Pre-tax profit jumped 5.4% to 9.07m on the back of a 5.1% gain in gross rental income to a historic high of £21.84m.

In parallel, IFRS profit before tax more than doubled to £43.44m, reflecting a higher valuation surplus and a £25.1m revaluation, as well as increased profits on disposals.

Adjusted basic earnings per share meanwhile grew from 9.2p to 9.7p for the year ended 31 March and McKay declared a final dividend of 7.2p per share, up 14.3% year-on-year.

McKay's net asset value grew 6.3% to 322p per share, or 10.9% excluding swap cancellation costs, as its portfolio valuation hit an all-time high of £460.15m in a record year of lettings, with 26 open market lettings contributing £7m per year to a 23.3% increase in contracted rental income of £27.05m.

Richard Grainger, chairman of McKay Securities, said, "Not only are these a striking set of results but they also act as a marker to reflect on the transformation of the business since our capital raising in 2014, leading to the recommendation of a 14.3% increase in the final dividend."

"Since 2014, the portfolio value has increased by 81% to £460.15 million, recurring contracted rents have increased by 67%, the portfolio rental value (ERV) has increased by 76% and gearing (loan to value) has reduced from 45% to 32%. This has been achieved despite selling £68.0 million of assets, that generated income of £3.10 million pa," Grainger added.

The group declared a final dividend of 7.2p, up 14.3%, taking the total dividend for the year up 11.1% to 10p.

As of 1200 BST, McKay shares had collected 2.74% to 277.90p.

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