LONDON - Ace Liberty and Stone Plc (AQSE: ALSP), a UK-based property investment company, reported a slight increase in rental income for the six-month period ending October 31, 2024. The company, which specializes in commercial property investments, announced rental income growth of 1.1% year-over-year, reaching £2,745,088. Despite this, Ace Liberty experienced a pre-tax loss of £243,144 for the period, attributed primarily to increased finance costs.
The company completed the disposal of the Egerton Park service station in Melton Mowbray in May 2024 for £2,750,000. Additionally, a £17.7 million debt facility was secured in September 2024 with Coutts & Co, which had previously held the existing debt against Ace (North) Limited's properties.
Ace Liberty's CEO, Ismail Ghandour, remarked on the company's stability and consistent revenue despite a challenging macroeconomic climate. He also noted the expectation of reduced interest rates moving into 2025, which could lead to decreased finance costs and improved profitability.
The company's portfolio boasts a strong occupancy rate of 96%, with only one void unit. Ace Liberty also holds cash resources of approximately £1.7 million for investment in UK commercial properties, with surplus funds to be invested short-term with UK deposit takers regulated by the Bank of England.
The company's balance sheet shows a portfolio bank loan to value of 51%, a weighted average unexpired lease term of 5.94 years, and a tenant base comprising 46% government bodies and 52% major industrial & commercial entities.
Looking forward, the economic outlook remains uncertain as 2025 approaches. However, the company's directors express confidence in the long-term prospects of the business, citing stable revenue and high occupancy rates as fundamental strengths.
Investors may note that the £10 million convertible loan note is due to expire in May 2025, with early-stage discussions already underway regarding its expiry.
The information in this article is based on a press release statement from Ace Liberty and Stone Plc.
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