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Balanced Commercial Property Trust Ltd on Monday reported a slightly lower net asset value, hurt by high interest rates and inflation in the UK. The London-based commercial property investment trust said net asset value per share as at September 30, the end of the third quarter, fell to 113.9 pence from 117.1p at June 30. Quarterly NAV total return was negative 1.7%, improved from negative 5.2% a year prior. The company said: ‘Real estate continues to be impacted by the macro-economic challenges of elevated rates of inflation and high interest rates which continue to weigh on investor sentiment. However, the Bank of England broke its cycle of 14 consecutive increases to the base rate, holding the benchmark interest rate at 5.25% in September. While the rate of inflation has proven stubborn since, it may be that the worst of the inflation-driven market uncertainty and interest rate hikes are now behind us.’ The company expects to report its NAV as at December 31 in January. Balanced Commercial Property shares were up 0.2% to 63.04 pence each in London on Monday morning. The wider FTSE 250 index was up 1.0%. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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