REG - KCR Residential REIT - Interim Results
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RNS Number : 9723W KCR Residential REIT PLC 17 March 2026
17 March 2026
KCR Residential REIT plc
("KCR" or the "Company")
Interim Results
KCR Residential REIT plc, the residential REIT group, is pleased to announce
its unaudited consolidated results for the six months to 31 December 2025.
The half year to 31 December 2025 has seen continued growth in core rental
income driven primarily by improved performance from the Deanery Court
property and incremental rental increases across the portfolio as a whole.
Overall, the operating environment has remained challenging with sustained
higher interest rates and continuing cost of living pressure. Ongoing
inflationary pressure has continued to make cost reductions within the
business difficult to achieve, however costs continue to be tightly
controlled. Outcomes from cost saving measures implemented during the half
year are expected to result in a reduction in administrative expenses and cost
of sales in the second half of the year.
The Group's primary short-term focus is to optimise the performance from the
existing assets whilst controlling costs to achieve a cash neutral position.
Progress continues to be made to transition the business. The strategy, as
outlined in last year's Annual Report, remains unchanged, to:
· improve the rental revenue from the existing properties;
· progressively upgrade the overall portfolio quality;
· explore the development opportunity within the portfolio; and
· focus on controlling and reducing costs where possible.
Lease expiries and tenant churn continue to be actively managed to optimise
rentals achieved. We expect to continue to achieve revenue growth over the
balance of the financial year, driven by a combination of incremental rental
growth and continued ongoing improved performance from both the Coleherne Road
and Deanery Court properties.
Pleasingly, improved operational performance mostly offset the impact of
higher finance costs and inflationary cost pressure in the business. Whilst
the impact of higher finance costs in particular has made the aim of achieving
a cash neutral position more challenging, good progress continues to be made
in achieving this outcome.
Operational highlights
· revenue for the half year increased 15% to £1,092k (31 December
2024: £950k), reflecting continued improved operational performance at
Deanery Court together with incremental rental increases across the portfolio
as a whole;
· Deanery Court achieved average occupancy of 86% for the half year - a
strong improvement from 66% in the prior year. Occupancy across the balance of
the portfolio remained strong over the half year with occupancy (of flats
available) >97%. Rental increases continued to be achieved at renewals /
re-letting; and
· positive operating cash flow increased with net cash from operations
of £218k (31 December 2024: £32k). This is the Group's strongest outcome to
date and reflects outcomes from the focussed delivery of the business plan
over the last five years. After allowing for financing charges, net cash used
in operating activities reduced by 31% to £180k (31 December 2024: £261k).
Whilst the business remains cash negative, cash burn is continuing to be
reduced within the business and progress towards achieving a cash neutral
outcome continues to be made.
The ongoing focus on improving operational performance and controlling costs
continues to reduce Group cash burn. Further improvements in operational
performance over the next 12 months are expected.
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
For further information please contact:
KCR Residential REIT plc info@kcrreit.com (mailto:info@kcrreit.com)
Russell Naylor, Executive Director Tel: +44 (0)7749 963 033
Cairn Financial Advisers LLP (Nomad) Tel: +44 (0)20 7213 0880
Emily Staples / Louise O'Driscoll
Zeus Capital Limited (Broker) Tel: +44 (0)20 7614 5000
Louisa Waddell
CHAIRMAN'S STATEMENT
KCR Residential REIT Plc ("KCR" or the "Company") and its subsidiaries
(together the "Group") operate in the private rented residential investment
market. The Company acquires properties that are rented to private tenants and
also owns and operates a freehold portfolio of retirement living accommodation
where most of the properties have been sold on long leases.
The half year to 31 December 2025 has seen continued growth in core rental
income driven primarily by improved performance from the Deanery Court
property and incremental rental increases across the portfolio as a whole.
Overall, the operating environment has remained challenging with sustained
higher interest rates and continuing cost of living pressure. Ongoing
inflationary pressure has continued to make cost reductions within the
business difficult to achieve, however costs continue to be tightly
controlled. Outcomes from cost saving measures implemented during the half
year are expected to result in a reduction in administrative expenses and cost
of sales in the second half of the year.
The transition of Coleherne Road to a minimum tenancy period of six months was
successfully completed during the period, which is also expected to deliver a
more consistent income profile and reduced operating costs for this property
over the balance of this financial year.
More favourable outcomes for energy and internet costs will also flow through
over the balance of calendar year 2026 as existing contracts expire.
Improved operational performance was offset by increased finance costs
reflecting the higher costs incurred following the expiry of the Hodge Bank
fixed rate facilities in early 2025.
Fundamentals for UK residential property remain sound, notwithstanding the
ongoing higher interest rate environment. The Group continues to look for
acquisitions on a disciplined basis, however tightness in debt markets, more
restrictive terms and conditions and higher debt costs continue to make it
challenging to support both the investment and capital raising that would be
required to support a substantive transaction.
Refurbishment works on two of the flats at Heathside commenced during the
December quarter. Works are now fully complete and these flats are in the
process of being let.
The Group's primary short-term focus is to optimise the performance from the
existing assets whilst controlling costs to achieve a cash neutral position.
Progress continues to be made to transition the business. The strategy, as
outlined in last year's Annual Report, remains unchanged, to:
· improve the rental revenue from the existing properties;
· progressively upgrade the overall portfolio quality;
· explore the development opportunity within the portfolio; and
· focus on controlling and reducing costs where possible.
· Lease expiries and tenant churn continue to be actively managed to optimise
rentals achieved. We expect to continue to achieve revenue growth over the
balance of the financial year, driven by a combination of incremental rental
growth and continued ongoing improved performance from both the Coleherne Road
and Deanery Court properties.
· Inflationary pressure continues to result in ongoing cost pressure and we
remain actively focussed on managing the cost base to limit the impact of cost
increases on the business. Implementation of a number of measures to reduce
costs during the half year are expected to result in reductions to both cost
of sales and administrative expenses being achieved over the balance of the
financial year.
· Pleasingly, improved operational performance mostly offset the impact of
higher finance costs and inflationary cost pressure in the business. Whilst
the impact of higher finance costs in particular has made the aim of achieving
a cash neutral position more challenging, good progress continues to be made
in achieving this outcome.
DIRECTORS' REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
We are pleased to report on the progress of the Group in the six-month period
to 31 December 2025.
Growth in core rental revenue for the half year was £141k (17%) driven by
improved operational performance at Deanery Court together with incremental
rental increases across the portfolio as a whole.
Momentum is expected to be maintained through the balance of the financial
year with the impact of cost saving measures implemented during the half year
also expected to positively impact costs within the business.
Active management of lease expiries to optimise core rental increases is
ongoing.
Deanery Court is expected to be a key driver of revenue growth over the
balance of the financial year with the conversion to the Cristal Apartments
operating model reaching maturity. Following the successful transition of
Coleherne Road to a minimum tenancy period of six months during the half year,
this asset is expected to reach a stabilised mature state during this
financial year.
Ongoing focus on optimising performance across the portfolio together with
cost control is expected to result in further reductions in the cash burn
within the business being achieved.
Operational highlights
· revenue for the half year increased 15% to £1,092k (2024: £950k),
reflecting continued improved operational performance at Deanery Court
together with incremental rental increases across the portfolio as a whole;
· Deanery Court achieved average occupancy of 86% for the half year - a
strong improvement from 66% in the prior year. Occupancy across the balance of
the portfolio remained strong over the half year with occupancy (of flats
available) >97%. Rental increases continued to be achieved at renewals /
re-letting; and
· positive operating cash flow increased with net cash from operations of
£218k (2024: £32k). This is the Group's strongest outcome to date and
reflects outcomes from the focussed delivery of the business plan over the
last five years. After allowing for financing charges, net cash used in
operating activities reduced by 31% to £180k (2024: £261k). Whilst the
business remains cash negative, cash burn is continuing to be reduced within
the business and progress towards achieving a cash neutral outcome continues
to be made.
The ongoing focus on improving operational performance and controlling costs
continues to reduce Group cash burn. Further improvements in operational
performance over the next 12 months are expected.
Property Portfolio
Property transactions during the half year
No acquisitions were made during the half year.
Refurbishment works on two of the legacy un-refurbished flats at Heathside
commenced during the December quarter. Works are now complete and these flats
are in the process of being let on an assured shorthold tenancy ("AST") basis.
Eleven flats are now owned within Heathside which is assisting in delivering
rental growth for the portfolio.
We continue to look for additional opportunities to make follow on
acquisitions of flats within Heathside.
As outlined above, tightness in debt markets, tighter terms and
conditions and higher debt costs make it
challenging to support both the investment and capital raising that would be
required to support any substantive
acquisitions.
Existing Portfolio
KCR continues to focus on improving performance from its existing portfolio.
The investment over recent years in improving the quality of the portfolio has
continued to deliver revenue growth and we reasonably expect to continue to
drive further growth from the existing assets over the course of the current
financial year.
In conjunction with incremental revenue growth, a number of measures to reduce
operating costs have been implemented during the half year with outcomes
expected to be reflected over the next 12 months. Substantive savings for
energy and internet costs have been locked in and will reflect as existing
contracts expire.
Implementation of a minimum six-month tenancy term at the Coleherne Road
property is expected to reduce volatility in occupancy levels across the
portfolio and also result in lower operating costs being incurred for this
property.
As outlined above, Deanery Court is expected to be a key driver of revenue
growth over the balance of this financial year.
We are awaiting an outcome on the planning submission made for the Ladbroke
Grove properties. Once planning outcome is known we will formalise our
strategy for this asset.
As we have outlined previously, the tired condition of this property is
resulting in increasing repairs and maintenance expenditure which is expected
to continue, pending a more holistic refurbishment works programme.
Repositioning of the rental product on offer by materially enhancing the
quality and presentation of the flats is considered to have potential to drive
a material uplift in achievable rentals and capital values.
KCR has two operating lines, clearly identifiable by brand, property quality
and letting strategy.
1. Cristal Apartments. Residential apartments, finished to a high modern
specification, fully furnished and let on a Walk in Walk Out (WIWO) basis
(utilities subject to fair usage caps, internet, furniture and TV licence
included) for a frictionless and flexible letting experience. Rental contracts
offer flexible terms; and
2. Osprey Retirement Living. 4* retirement living property rented on
flexible letting packages customised to suit tenant needs. All rentals are on
assured shorthold tenancies for a minimum period of six months.
1. Cristal Apartments (WIWO letting strategy)
The Coleherne Road and Deanery Court properties are both branded and operated
under the Cristal Apartments brand. Both have delivered substantially improved
performance following the repositioning of the rental product offered and
conversion to the WIWO operating model.
Coleherne Road - this property comprises ten studio and one-bedroom flats. The
property has been repositioned to a materially higher standard and a full
refurbishment programme has been completed. Post completion of refurbishment
works property was initially operated with a mix of short let and traditional
AST tenancies. During the half year the transition to a minimum tenancy period
of six-months, solely on an AST basis was completed. There has been strong
market acceptance of this product on a WIWO basis and we believe that the
reduced operational costs associated with a minimum tenancy period of
six-months will result in an improved net contribution from this asset.
Ladbroke Grove - this portfolio comprises 16 studio, one and two bedroom flats
in three buildings which are 100% occupied. The flats are being lightly
refurbished as tenants vacate and then re-let in the private rental market.
The overall tired condition of the property is reflected in ongoing repairs
and maintenance expenditure. As outlined above, we are waiting on an outcome
for the planning submission made last year. Once the planning outcome is known
we will finalise the strategy for this property
Deanery Court (Southampton) - this property comprises 27 two-bedroom
residential apartments and has been converted to the Cristal Apartments
operating model and we expect this asset will be a key driver of growth over
the 2026 financial year.
2. Osprey retirement living (4* retirement apartments)
The Osprey portfolio consists of 153 flats and 13 houses let on long leases in
six locations, together with an estate consisting of 30 freehold cottages in
Marlborough where Osprey delivers estate management and sales services.
The key asset in the portfolio is the freehold block at Heathside, Golders
Green comprising 37 one and two bedroom apartments with 11 of the apartments
owned by the Group and 26 held on a long leasehold basis. The strategy to
selectively acquire long leasehold apartments within the block, refurbish them
to a high standard and let them on an assured tenancy basis has been
successful and has delivered strong rental returns for the Group.
Financial Performance
The half year to 31 December 2025 reflects improved operational performance at
Deanery Court and rental growth across the balance of the portfolio.
Gross margin improved during the half year as outcomes from cost reduction
measures started to be reflected. Non-recurring expenditure of approximately
£55k incurred during the half year together with underlying inflationary
pressure on costs across the Group continues to place upward pressure on
administrative costs. A number of measures have been implemented during the
half year to reduce costs across the Group which will be reflected over the
next 12 months. We expect a net reduction in costs to be achieved over
calendar year 2026 (after allowing for continued upwards pressure on costs
across the Group).
· Revenue for the half year increased 15% to £1,092k (2024: £950k)
· Gross profit as a percentage of revenue increased to 77% (2024: 76.10%)
reflecting the initial outcomes of the implementation of cost reduction
initiatives (mainly reduced energy and internet costs as contracts expire and
roll to more favourable rates). In absolute terms overall gross profit
increased by 16% to £841k (2024: £723k).
· An operating profit before separately disclosed items of £76k (2024:
£798k). Prior year included non-cash positive revaluation movements of
£785k.
· Operating profit £12k (2024: £714k) after refurbishment costs of £64k
(2024: £84k).
· Loss for the period was £377k (2024: £433k profit) and loss per share
was 0.91p (2024: 1.04p profit per share).
The value of KCR's property portfolio was up on the comparative period at
£26.5m (2024: £26.2m), reflecting the impact of revaluation movements. The
Group's current assets increased to £0.92m (2024: £0.86m) with an increase
in trade and other receivables largely offsetting a reduction in cash used to
fund operating losses and support ongoing refurbishment work programmes.
Secured bank borrowings increased to £14.6m against the prior half year
(2024: £13.9m) reflecting the increased funding taken out during the June
2025 half year and December 2025 half year.
Total assets increased to £27.5m (2024: £27.14m). Net assets per share
decreased to 29.45p (2024: 30.61p).
The Group continues to be cash flow negative, however it is continuing to work
towards achieving a cash neutral position by improving operating performance
from the existing portfolio. Costs continue to be actively managed as we work
towards building a stable platform that can be scaled up. Solid progress
continued to be made during the half year in reducing the cash burn within the
business. At 31 December 2025, the Group had cash balances totalling £0.43m
(2024: £0.47m).
Throughout the period, the Company remained a REIT and has complied with REIT
rules.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (unaudited)
Six months ended 31 December 2025 Six months ended 31 December 2024 Year ended 30 June 2025 (audited)
Notes £ £ £
Revenue 2 1,092,414 950,103 1,885,144
Cost of sales (251,230) (227,253) (419,046)
Gross profit 841,184 722,850 1,466,098
Administrative expenses (765,566) (710,331) (1,361,262)
Fair value through profit and loss - revaluation of investment properties
- 785,000 1,162,000
Operating profit before separately disclosed items 75,618 797,519 1,266,836
Separately disclosed items
Costs associated with refinancing - - (73,694)
Costs associated with refurbishment of investment properties
3 (63,594) (83,990) (203,129)
Operating profit 12,024 713,529 990,013
Finance costs (396,989) (293,182) (683,567)
Finance income 7,687 12,249 21,195
(Loss)/profit before taxation (377,278) 432,596 327,641
Taxation - - -
(Loss)/profit for the period/year (377,278) 432,596 327,641
Total comprehensive (expense)/income for the period/year (377,278) 432,596 327,641
(Loss)/profit per share expressed in pence per share 4 (0.91) 1.04 0.79
Basic (0.91) 1.04 0.79
Diluted
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2025 (unaudited)
31 December 2025 31 30 June 2025 (audited)
December 2024
Notes £ £ £
Non-current assets
Property, plant and equipment 53,115 129,490 91,303
Investment properties 5 26,528,300 26,151,300 26,528,300
26,581,415 26,280,790 26,619,603
Current assets
Trade and other receivables 491,128 383,282 516,924
Cash and cash equivalents 427,498 472,652 174,312
918,626 855,934 691,236
Total assets 27,500,041 27,136,724 27,310,839
Equity
Shareholders' equity
Share capital 6 4,166,963 4,166,963 4,166,963
Share premium 14,941,898 14,941,898 14,941,898
Capital redemption reserve 344,424 344,424 344,424
Retained earnings (7,179,796) (6,697,563) (6,802,518)
Total equity 12,273,489 12,755,722 12,650,767
Non-current liabilities
Interest bearing loans and borrowings 14,561,215 13,904,324 14,135,965
Current liabilities
Trade and other payables 665,337 476,678 524,107
665,337 476,678 524,107
Total liabilities 15,226,552 14,381,002 14,660,072
Total equity and liabilities 27,500,041 27,136,724 27,310,839
Net asset value per share (pence) 29.45 30.61 30.36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (unaudited)
Share capital Share premium Capital redemption reserve Retained earnings Total equity
£ £ £ £ £
Balance at 1 July 2024 4,166,963 14,941,898 344,424 (7,130,159) 12,323,126
Changes in equity
Total comprehensive income - - - 432,596 432,596
Balance at 31 December 2024 4,166,963 14,941,898 344,424 (6,697,563) 12,755,722
Changes in equity
Total comprehensive expense - - - (104,955) (104,955)
4,166,963 14,941,898 344,424 (6,802,518) 12,650,767
Balance at 30 June 2025
Changes in equity
Total comprehensive expense - - - (377,278) (377,278)
4,166,963 14,941,898 344,424 (7,179,796) 12,273,489
Balance at 31 December 2025
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (unaudited)
Six months Six months Year
ended ended ended
31 December 2025 31 December 30 June 2025
2024 (audited)
£ £ £
Cash flows from operating activities
(Loss)/profit for the period/year from continuing operations (377,278) 327,641
432,596
Adjustments for
Depreciation charges 38,187 38,187 76,373
Revaluation of investment properties - (785,000) (1,162,000)
Finance costs 396,989 293,182 683,567
Finance income (7,687) (12,249) (21,195)
Decrease/(increase) in trade and other receivables 25,797 72,263 (61,378)
Increase/(decrease) in trade and other payables 141,230 (6,989) 40,440
Cash from / (used in) operations 217,238 31,990 (116,552)
Interest paid (396,989) (293,182) (683,567)
Net cash used in operating activities (179,751) (261,192) (800,119)
Cash flows from investing activities
Purchase of investment properties (including capital expenditure on current
properties)
- (210,000) (210,000)
Interest received 7,687 12,249 21,195
Net cash from/(used in) investing activities 7,687 (197,751) (188,805)
Cash flows from financing activities
Loan repayments in period/year - - (7,618,359)
Proceeds from new loans in period/year 425,250 - 7,850,000
Net cash generated from financing activities 425,250 - 231,641
Increase/(decrease) in cash and cash equivalents 253,186 (458,943) (757,283)
Cash and cash equivalents at beginning of period/year 174,312 931,595 931,595
Cash and cash equivalents at end of period/year 427,498 472,652 174,312
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (unaudited)
1. Basis of preparation
The Company is registered in England and Wales. The consolidated interim
financial statements for the six months ended 31 December 2025 comprise those
of the Company and subsidiaries. The Group is primarily involved in UK
property ownership and letting.
Statement of compliance
This consolidated interim financial report has been prepared in accordance
with the recognition and measurement principles of UK adopted International
Accounting Standards. AIM-quoted companies are not required to comply with IAS
34 Interim Financial Reporting and the Group has taken advantage of this
exemption. Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the changes in
financial performance and position of the Group since the last annual
consolidated financial statements for the year ended 30 June 2025. This
consolidated interim financial report does not include all the information
required for full annual financial statements prepared in accordance with
International Financial Reporting Standards. The consolidated interim
financial statements are unaudited and do not constitute statutory accounts as
defined in section 434(3) of the Companies Act 2006.
A copy of the audited annual report for the year ended 30 June 2025 has been
delivered to the Registrar of Companies. The auditor's report on these
accounts was unqualified and did not contain statements under s498(2) or
s498(3) of the Companies Act 2006.
This consolidated interim financial report was approved by the Board of
Directors on 16 March 2026.
Significant accounting policies
The accounting policies applied by the Group in this consolidated interim
financial report are the same as those applied by the Group in its
consolidated financial statements for the year ended 30 June 2025.
Basis of consolidation
The consolidated interim financial statements include the financial statements
of the Company and its subsidiary undertakings. The subsidiaries included
within the consolidated interim financial statements, from their effective
date of acquisition, are K&C (Newbury) Limited, K&C (Coleherne)
Limited, K&C (Osprey) Limited, KCR (Kite) Limited and KCR (Southampton)
Limited.
Going Concern
The Directors have adopted the going-concern basis in preparing the
consolidated interim financial statements.
The Directors have concluded that it remains appropriate to prepare these
consolidated interim financial statements on a going concern basis.
2. Operating segments
The Group is involved in UK property ownership and letting and is considered
to operate in a single geographical and business segment.
Revenue analysed by class of business:
Six months ended Six months ended Year ended 30 June
31 December 2025 31 December 2024 2025 (audited)
£ £ £
Rental income 976,550 835,764 1,646,669
Management fees 60,489 57,517 120,868
Resale commission 18,140 32,100 77,140
Ground rents 10,175 10,175 12,725
Leasehold extension income 25,000 9,462 19,662
Other income 2,060 5,085 8,080
1,092,414 950,103 1,885,144
3. Operating profit
The operating profit is stated after charging:
Six months ended Six months ended Year ended 30 June
31 December 2025 31 December 2024 2025 (audited)
£ £ £
Costs of refurbishment of investment properties 63,594 83,990 203,129
Costs associated with refinancing - - 73,694
Depreciation of property, plant and equipment 38,187 38,187 76,373
Directors' remuneration 72,500 66,500 194,000
During the six months ended 31 December 2025, the Group incurred costs of
£63,594 (£83,990 - December 2024) (£203,129 - June 2025) relating to major
refurbishment of properties at Coleherne Road, London, Ladbroke Grove, London
and Heathside, London.
In the year ended June 2025 the Group obtained new financing from Al Rayan
Bank, in order to repay the loans held with Hodge Bank. The Group incurred
costs associated with the refinancing of £73,694.
During the six-month period, the Company paid Naylor Partners, a business
owned by Russell Naylor, fees of £24,000 (December 2024 - £24,000).
The directors are considered to be key management personnel.
4. Basic and diluted (loss)/profit per share
Basic
The calculation of loss per share for the six months to 31 December 2025 is
based on the loss for the period attributable to ordinary shareholders of
£377,278 divided by the weighted average number of ordinary shares in issue.
The weighted average number of shares used for the six months ended 31
December 2025 was 41,669,631 (June 2025 - 41,669,631) (December 2024 -
41,669,631).
Diluted
The calculation of loss per share for the six months to 31 December 2025 is
based on the loss for the period attributable to ordinary shareholders of
£377,278 divided by the weighted average number of ordinary shares in issue,
adjusted for dilutive share options. As no share options existed in the 6
months ended 31 December 2025, there is no dilution to the profit per share.
The weighted average number of shares used for the six months ended 31
December 2025 was 41,669,631 (June 2025 - 41,669,631) (December 2024 -
41,669,631).
5. Investment properties
Six months ended 31 December 2025 Six months ended 31 December 2024 Year ended 30 June
2025 (audited)
£ £ £
At start of period/year 26,528,300 25,156,300 25,156,300
Additions - 210,000 210,000
Revaluations - 785,000 1,162,000
At end of period/year 26,528,300 26,151,300 26,528,300
Investment properties were valued by professionally qualified independent
external valuers at the date of acquisition and were recorded at the values
that were attributed to the properties at acquisition date. The investment
properties were independently valued in March 2025, June 2025, July 2025 and
September 2025. All material properties were subject to full or desktop
valuations. The properties were valued by the Directors as at 31 December 2025
with reference to independent valuations completed in March 2025, June 2025,
July 2025 and September 2025. A number of low value properties (less than 8%
of the total investment property value) within the Osprey portfolio were
valued by the Directors with reference to independent valuations completed in
August 2023 and the market commentary contained within the independent
external valuations performed in March 2025, June 2025, July 2025 and
September 2025.
5. Investment properties - continued
Fair value is based on current prices in an active market for similar
properties in the same location and condition. The current price is the
estimated amount for which a property could be exchanged between a willing
buyer and willing seller in an arm's length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without
compulsion.
Valuations are based on a market approach which provides an indicative value
by comparing the property with other similar properties for which price
information is available. Comparisons have been adjusted to reflect
differences in age, size, condition, location and any other relevant factors.
The fair value for investment properties has been categorised as a Level 3
inputs under IFRS 13.
The valuation technique used in measuring the fair value, as well as the
significant inputs and significant unobservable inputs are summarised in the
following table:
Fair Value Hierarchy Valuation Technique Significant Inputs Used Significant Unobservable Inputs
Level 3 Income capitalisation and or capital value on a per square foot basis Adopted gross yield 4.00% - 7.87%
Adopted rate per square foot
£265 - £1,464
6. Share capital
Allotted, issued and fully paid: 31 December 2025 31 30 June
December 2024 2025 (audited)
Number: Class: Nominal value: £ £ £
41,669,631 Ordinary £0.10 4,166,963 4,166,963 4,166,963
4,166,963 4,166,963 4,166,963
At 1 July 2025, the Company had 41,669,631 Ordinary shares of £0.10 each in
issue. The Ordinary shares carry no rights to fixed income.
7. Related Party Transactions
Details of remuneration and fees paid to directors are disclosed at note 3 of
these consolidated interim financial statements.
8. Post Balance Sheet Events
There are no post balance sheet events to disclose.
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