L&S to convert to REIT status by September

AIM-listed London & Stamford (L&S) is heading closer to its aim of converting to REIT status after posting a nearly 20% rise in its Net Asset Value per share in the year ended 31 March.

'I am very pleased to confirm that we are now in a position to implement our previously advised strategy to move to the main market of the London Stock Exchange and to convert into a UK Real Estate Investment Trust', said non-executive chairman Raymond Mould. 'The work to achieve this has commenced and we would expect it to be implemented by the end of September 2010.'

The company, which posted a £106 mln (EUR 127 mln) profit last year compared to £24 mln a year before, has cash available of nearly £200 mln, after carrying out acquisitions of £200 mln over the past months and taking into account the purchase in May of the Radial portfolio from the Royal Bank of Scotland for £208.5 mln.

'Our results highlight the very attractively priced acquisitions we made early in 2009, which have benefited through careful asset management and yield movement to produce a valuation uplift of £72 mln', Mould added. Even though the company has become increasingly cautious on further investment as prime yields tightened to 'potentially unsustainable levels', it will continue 'to explore opportunities which tend to be for larger lot sizes, including more complex portfolio opportunities.'

L&S was established in October 2007 to exploit opportunities in the UK property cycles. The company made no acquisitions during 2008, but was an active buyer last year with six new investments using £190 mln of equity. In July 2009, it raised a further £219.5 mln through a placing and open offer.