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Balanced Commercial Property Trust Ltd on Thursday said that the economic and property market backdrop has resulted in the company’s net asset value declining in the first half of 2023. The London-based commercial property investment trust said net asset value as at June 30 per share fell 1.2% to 117.1 pence from 118.5p at December 31. Chair Paul Marcuse said: ‘While consensus has begun to move away from the UK economy falling into recession, the macroeconomic environment is not overly favourable, with high inflation and high debt costs impacting economic growth. This rise in interest rates has led to less investment activity, and this lack of liquidity within the property capital markets continues to bear on investor sentiment.’ NAV total return in the first half of 2023 was 1.5%, outperforming the MSCI UK Quarterly Property Index, which returned 0.3%. Looking ahead, the company noted that inflation remains elevated but has started to abate. However, ‘core inflation remains above the consensus forecast,’ Balanced Commercial said. Balanced Commercial shares were 0.3% lower at 71.20 pence each on Thursday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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