London & Stamford Property Plc, the REIT run by industry veterans Ray Mould and Patrick Vaughan, today reported that income for FY 2012 ended March 31st was slightly down at £35.5 million. In the absence of a profit on revaluation of the property portfolio, however, which was only £5 million this year compared to £51 million last year, and a £13 million negative movement in the value of it's derivatives, LSP brought in a pre-tax profit of £22 million compared to £74 million last year. When it presented last year's results it saw great opportunity in 2012, but like many things in business at the moment, it has all taken much longer than anticipated.

Ray Mould, Executive Chairman, said:

"The continued economic and financial uncertainty which surrounds us has supported our cautious and disciplined investment approach.

"Our total firepower currently is c. £900 million and this puts London & Stamford in a very strong position in a market which we believe is offering increasingly exciting opportunities for investment in good quality assets with good covenants at reasonable prices.

"Our strategy continues to be to identify opportunities in the UK market which will offer double digit cash equity yields and I am delighted to report that we currently have under offer four potential investments with a value around £300 million which we are hopeful can complete in the near future."

NAV has fallen during the year from £669 million to £634 million as a post tax profit of only £5.3 million has been declared this year. Since dividend payments last year cost £37 million, maintaining the dividend payments, which is what the Board propose, is supported by underlying profits.

Shares in LSP closed last night at 106p.