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North East-based investment fund delivers positive financial performance in resilient northern property sector

John Newlands, chairman of PBLT

TOC Property Backed Lending Trust PLC (PBLT) managed by Newcastle-upon Tyne-based wealth management and property lending specialist, Tier One Capital Ltd, has reported further good news with continued growth in the resilient North East and Scotland house building and commercial property sectors, according to its latest financial results.

This continues the growing positive momentum for PBLT following its refreshed investment strategy and focus on the North East and Scotland residential and commercial property markets.

Announcing an interim trading update for the six months to 31 May 2021, the Newcastle-headquartered investment company has a current portfolio of £19.7 million funding 17 live construction projects.

As a result of its activity during the six-month period to 31 May 2021, PBLT has increased profits before tax to £606,000 compared to £256,000 for the same period the year before.

PBLT has increased its Net Asset Value from 83.93 pence per share to 84.68 delivering a total Net Asset Value return of 2.1 percent. Earnings per share has also increased from 0.98p, in 2020, to 2.25p.

Dividends for the period totalled 1p per share, which is part of PBLT’s strategy to issue dividends at this level each quarter with the potential of a final balancing payment at the end of the financial year depending on market conditions and the performance of the investment portfolio.

Now in its fifth year of trading on the London Stock Exchange, PBLT’s growth is in line with its updated investment strategy to provide further funding support to the residential and commercial property sectors in the North of England and Scotland.

More than 70 percent of PBLT’s portfolio is focused on the residential property sector with new investments in the period including a £1.05m mezzanine facility to support the development of 31 residential apartments and three commercial units in Paisley, Scotland.

In the commercial property market PBLT delivered £3.8m funding to construct an environmentally friendly crematorium in East Renfrewshire, Scotland.

Following this period, PBLT has already agreed a £4.5m facility for a 61-property development in Darlington and has a further c.£7m lined up to support two residential projects in North East England currently in the pipeline.

John Newlands, chairman of PBLT, said: “While certain sectors continue to be impacted by the Covid-19 pandemic, the house building industry has remained resilient, which vindicates our strategy to increase PBLT’s focus on this market.

“The continued demand for new properties, aided by the stamp duty holiday scheme and underpinned by a fresh surge for home loans, has driven growth in the housing market and opportunities for house builders. Underlying demand is likely to remain as the economy unlocks, but we are mindful of the impact on material and labour shortages, which have the potential to slow progress.”