Glasgow-based property group Terrace Hill has released its first results since the company (formerly called CapitalTech) merged with its chairman Robert Adair's Westview vehicle. These showed net asset value raised from £25.2m to £40.8m, benefiting from the increased size of the portfolio and a residential property revaluation that added a whopping £5.5m to its asset base. Pre-tax profits were also increased, from £26,000 for the year to April to £107,000 in the six month interim period to October. Adair points out that, 'primarily, we are looking to add revenue profits to our valuable asset base', adding that 'already we have seen the beginning of this benefit'. Reflecting confidence in its asset base, the group has proposed to buy back up to 750,000 shares at the mid-market price of 16.25p in the near future. It intends to continue its moves into commercial property, principally around Bristol and the North-East of England. But its residential holdings are almost exclusively in Scotland, so are not exposed to what could be a house price 'bubble' in London and SE England. Adair's comments about narrowing the group's discount to NAV (38%) are not completely warranted, as such a discount is not so unusual for a property firm. Investors should wait and see what profits develop before getting exposure.