Wynnstay Properties Delivers Strong Annual Results with 5.6% Dividend Hike and Portfolio Growth

Wynnstay property portfolio valuation rises as industrial assets keep doing the heavy lifting

The portfolio valuation increased by 2.9% on a like-for-like basis to £44.170 million. Total portfolio value rose to £46.970 million, including the five industrial units in Waterbeach, Cambridge acquired during the year and the Weston-super-Mare property held for sale.

Industrial assets are clearly the engine room here. Segmental reporting shows industrial rental income of £2.824 million out of total rental income of £2.866 million. Retail contributed £42,000 and office contributed nothing in 2026, so Wynnstay is effectively an industrial-focused commercial property company.

That matters because light industrial and trade-counter space has generally held up better than some other parts of the commercial property market. Wynnstay’s strategy is built around flexible, multi-let units in areas with decent occupier demand, and this year’s results suggest that approach is still working.

The post year-end sale of the Weston-super-Mare property also looks smart. It sold for £665,000, which was a 35.7% uplift over its net book value of £490,000 at the March 2025 valuation. That is a nice example of active asset management creating value before exiting.

Dividend growth looks credible, but earnings per share got a boost from revaluation gains

The dividend increase is good news. Wynnstay has proposed a final dividend of 18.0p, up from 17.0p, which takes the full-year total to 28.5p per share from 27.0p. For income-focused investors, that is exactly what you want to see – gradual, repeatable progress rather than a one-off jump.

That said, it is worth keeping your feet on the ground when looking at the 71.8p earnings per share figure. A chunk of that uplift came from a fair value adjustment of £1.048 million on the property portfolio. Fair value gains are revaluation gains – useful and real in terms of asset worth, but not cash in the bank.

The cash-generative side of the business still improved, just more modestly. Operating income before fair value adjustment rose 4.6% to £2.024 million. So yes, the profit growth is good, but it is not all coming from rent rolling in faster.

Debt, refinancing and the December 2026 loan deadline – the main risk in this Wynnstay RNS

The balance sheet remains conservative by property-sector standards, but there is one obvious watchpoint. Wynnstay’s loan to value ratio rose slightly to 23.8% from 23.3%, while borrowings increased to £11.190 million from £9.977 million. Cash fell to £0.539 million from £1.732 million after the Cambridge acquisition.

None of that is alarming on its own. A sub-25% loan to value ratio is fairly modest. The company also had £3.800 million undrawn on its revolving credit facility at year-end.

The issue is timing. Wynnstay’s current loan facilities expire in December 2026, which is why the £11.190 million of borrowings now appears as a current liability. The good news is that Handelsbanken has given credit approval and is willing in principle, subject to contract, due diligence and documentation, to provide new facilities of up to £20 million.

That package would include term loan facilities of £12 million and £3 million, plus a £5 million revolving credit facility. It sounds reassuring, but it is not fully signed yet. So the refinancing risk has reduced, but it has not disappeared.

Capital discipline, EPC upgrades and refurbishment plans show long-term thinking

One thing I liked in this update is the company’s discipline around development. Wynnstay has planning permission for six new units across Liphook, Aylesford and Ipswich, creating around 11,200 sq ft of new space. But it is not pushing ahead because construction costs have risen faster than rents, making returns too marginal for the risk.

That is the right call. Plenty of property businesses destroy value by forcing developments through just because they can.

There is also a practical plan around energy performance. Wynnstay said over 55% of units should achieve an EPC rating of C or above once fresh certificates are lodged, and it has budgeted £210,000 over the next 18 months to bring the remaining units up to at least a C rating by December 2027. That is not exciting, but it is important. Better EPC ratings can help protect lettability, rents and values.

My view on Wynnstay Properties results – a quietly strong year with one refinancing caveat

Overall, this looks like a positive RNS. The business delivered genuine rental growth, strong leasing outcomes, very high occupancy, full rent collection, rising asset values and another step up in the dividend. That is a tidy combination.

The negative angle is mainly around refinancing and, to a lesser extent, higher costs. Property costs rose to £149,000 from £113,000 due to legal and agent fees linked to the busy leasing year, and administrative costs increased to £717,000 from £697,000, including £30,000 of non-recurring board appointment costs. Those increases are manageable, but worth noting.

The bigger point is the debt maturity in December 2026. Wynnstay has clearly made good progress with its lender, but until the paperwork is signed, investors should treat that as the main item to watch.

Even so, this feels like a company doing the boring things well. In listed property, that usually beats drama. If Wynnstay can complete its refinancing on acceptable terms and keep converting leasing activity into rent growth, the investment case still looks healthy from here.