Member Article

A&J Mucklow heralded as top UK REIT

A property developer in the West Midlands has been named as the number one UK Real Estate Investment Trust (REIT) in a survey carried out by BDO.

A&J Mucklow Group were found to produce the best results in the country, and the business advisory firm BDO said it was the top firm in its sector.

The REIT, which pays shareholders based on their investment in the company’s portfolio of property, improved its profits before tax by 7.8%, while its gross annual rent roll rose by 21%, and vacant space dropped to just 7.3%.

The firm also increased its dividend by 6.1% to 18.21 pence per share this year, which BDO said was down to its regional focus in the Midlands.

BDO said, despite a turbulent market over the last five years, UK REITs have maintained a good reputation, and presented the sector as a suitable destination for both inward and foreign investment.

Justin Parker, Managing Director at A&J Mucklow, said: “It was another progressive year for the Group.

Whilst continuing to maintain a high occupancy level, we took advantage of the continued economic uncertainty and weak investment market to expand our property portfolio.“

Also commenting, Gary Rouse, real estate tax director at BDO Birmingham, said: “Investors generally view real estate as a safe, slow growth asset class with the potential to offer regular, predictable returns, which is attractive in such uncertain economic times. “In addition, given the reforms introduced by this year’s Finance Act, it is only a matter of time until the sector increases in size.

“Moreover, we expect to see the new entrants to the UK-REIT regime becoming increasingly influential in setting the tone for UK real estate investment and, certainly in relation to residential property, delivering Government policy.”

This was posted in Bdaily's Members' News section by Miranda Dobson .