DevSec profits rise

Development Securities has reported a significant increase in pre-tax profit to £19.5m from £0.8m in 2013, following a 5.2% rise in its net asset value.

In its preliminary results, the investor recommended a 33.3% increase in its final dividend, taking the total year-end dividend to 5.6p, up from 4.8p in 2013.

DevSec also reported £27m of development and trading gains for the period, down slightly from the £28.1m received in 2012. However, the value of its investment portfolio increased by £4.6m, compared to a £12.8m decline in 2013.

Earlier in April DevSec announced that it had secured £14.8m of forward funding from a client of CBRE Global Investors for the redevelopment of The Square shopping centre in Hale Barns. The investor also recently secured the sale of the Chorlton Cross shopping Centre to the GMPVF for £10.1m.

Michael Marx, chief executive of DevSec, said: "The strong improvement in our performance during the year was driven by continued significant gains from within our development and trading portfolio and an increase in the value of our regional investment portfolio.

"With the UK economy continuing to strengthen and some enhanced liquidity returning to real estate markets outside London, we have accelerated our program of asset disposals within our investment portfolio. This will allow us to recycle capital into further investment opportunities that offer enhanced growth prospects."

The share price was up 8p to 240p a share.