Warner updates on challenges

Warner Estate Holdings said in an update that it continued to meet the ongoing challenges arising from the uncertain economic environment and from the group’s high level of gearing. It said headline performance for the first three quarters of the year benefited from the sale of the Radial Distribution asset management contract and joint venture equity interest in the first quarter.

Distributions relating to the units held in the Apia Regional Office Fund and the Ashtenne Industrial Fund began again in the latter half of 2010, contributing £1m of income. Rental income and management fees were maintained in line with the six month period to the end of September and the group continued to benefit from the cost saving initiatives implemented last year.

Warner has begun talks with its three lenders because the facilities secured on its wholly owned assets mature in 2012. It said a range of options to strengthen the group’s balance sheet was under consideration.