LONDON (Thomson Financial) - McKay Securities Plc.'s board is confident the group is in a strong financial position to benefit in due course from the cyclical downturn in the property market.

The real estate investment trust cited long-term finance at competitive rates supporting existing operations, and secured headroom for acquisitions and new projects.

At present, its cash flow exposure to falling rents and tenant failure is limited as it has a 94 percent occupancy rate, no ongoing speculative development, and 68 percent of all rents are paid by tenants with a net worth of more than 15 million pounds.

The group also said, having reviewed market conditions and in line with its current strategy of avoiding significant development exposure in such uncertain markets, it has deferred the redevelopment of its 30/32 Lombard Street, central London, property and this is being kept under regular review.

On a broader perspective, the company said the investment market remains volatile, with transaction volumes generally down by at least 50 percent on last year.

TFN.newsdesk@thomson.com npr/am

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.