Net Asset Value(s)

RNS Number : 1330T

F&C Commercial Property Trust Ld

16 July 2015

 



To:                   Company Announcements

Date:                16 July 2015

Company:        F&C Commercial Property Trust Limited

Subject:           Net Asset Value

Net Asset Value

The unaudited net asset value ('NAV') per share of the Group as at 30 June 2015 was 129.0 pence. This represents an increase of 3.4 per cent from the unaudited NAV per share as at 31 March 2015 of 124.7 pence and a NAV total return for the quarter of 4.7 per cent.

The NAV has been calculated under International Financial Reporting Standards ('IFRS'). It is based on the external valuation of the Group's direct property portfolio prepared by CBRE Limited.

The NAV includes all income to 30 June 2015 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 2015 no adjustments were required to the NAV in respect of dividends for which the share price had gone ex-dividend.

Share Price

The share price was 141.2 pence per share at 30 June 2015, which represented a premium of 9.5 per cent to the NAV per share announced above. The share price total return for the quarter was 4.6 per cent.

Analysis of Movement in NAV

The following table provides an analysis of the movement in the unaudited NAV per share for the period from 31 March 2015 to 30 June 2015 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 31 March 2015	996.7	124.7
Unrealised increase in valuation of property portfolio *	36.9	4.6	3.7
Gain on sale of property	0.1	0.0	0.0
Movement in fair value of interest rate swap	0.4	0.0	0.0
Other net revenue	9.2	1.2	0.9
Dividends paid	(12.0)	(1.5)	(1.2)
NAV as at 30 June 2015	1,031.3	129.0	3.4

* The ungeared increase in the valuation of the property portfolio over the quarter to 30 June 2015 was 3.0%, after allowing for capital expenditure.

The net gearing at 30 June 2015 was 16.9%.#

# Net gearing: (Borrowings - cash) ÷ total assets (less current liabilities and cash).

Portfolio Analysis - Sector Breakdown

	Market Value £m	% of portfolio as at 30 June 2015	% unrealised movement  in quarter
Offices	476.9	37.9	1.8
West End	182.7	14.5	0.6
South East	93.4	7.4	0.9
Rest of UK	185.8	14.8	2.8
City	15.0	1.2	8.9
Retail	336.9	26.8	5.6
South East	336.9	26.8	5.6
Industrial	188.1	15.0	7.0
South East	21.8	1.8	22.7
Rest of UK	166.3	13.2	5.3
Retail Warehouse	222.0	17.6	(1.5)
Other	33.6	2.7	4.3
Total Property Portfolio	1,257.5	100.0	3.0

Portfolio Analysis - Geographic Breakdown

	Market Value £m	% of portfolio as at 30 June 2015	% unrealised movement  in quarter
West End	455.8	36.2	4.3
South East	306.4	24.4	2.3
Scotland	176.9	14.1	-
Midlands	149.6	11.9	3.4
North West	133.9	10.6	3.7
Eastern	20.0	1.6	-
Rest of London	15.0	1.2	8.9
Total Property Portfolio	1,257.5	100.0	3.0

Top Ten Investments

	Sector
Properties valued in excess of £200 million
London W1, St Christopher's Place Estate *	Retail
Properties valued between £70 million and £100 million
Newbury, Newbury Retail Park	Retail Warehouse
London SW1, Cassini House, St James's Street	Office
Solihull, Sears Retail Park	Retail Warehouse
Properties valued between £50 million and £70 million
London SW19, Wimbledon Broadway	Retail
London W1, 25 Great Pulteney Street	Office
Properties valued between £40 million and £50 million
Uxbridge, 3 The Square, Stockley Park	Office
Aberdeen, Unit 2 Prime Four Business Park, Kingswells	Office
Aberdeen, Unit 1 Prime Four Business Park, Kingswells	Office
Properties valued between £30 million and £40 million
Rochdale, Dane Street	Retail Warehouse

*Mixed use property of retail, office and residential space.

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	1,257.5	157.3	121.9
Adjustment for lease incentives	(15.7)	(2.0)	(1.5)
Fair Value of Property Portfolio	1,241.8	155.3	120.4
Current Debtors	19.7	2.5	1.9
Cash	99.2	12.4	9.6
Current Liabilities	(20.2)	(2.5)	(1.9)
Total Assets (less current liabilities)	1,340.5	167.7	130.0
Interest-bearing loans	(307.3)	(38.5)	(29.8)
Interest rate swap	(1.9)	(0.2)	(0.2)
Net Assets at 30 June 2015	1,031.3	129.0	100.0

Property Purchases and Sales

On 30 June 2015, the Company completed the sale of its Absolute Ownership (Scottish equivalent to English Freehold) in 124-125 Princes Street, Edinburgh for £18.05 million. The property comprises a seven storey building providing a prominent retail unit and office accommodation on the upper floors.

The disposal realises substantial capital growth following the completion of a programme of asset management activities which included the refurbishment of the office floors and the successful leasing of those floors.  The property is now fully let providing an opportune time to sell the asset and to redeploy the capital into new asset management opportunities within the portfolio.

There were no other sales or purchases during the quarter.

Borrowings

The Group's borrowings consist of a £260 million loan with a term to 31 December 2024 and a fixed interest rate of 3.32 per cent per annum. The Group also has a £50 million bank loan with a term to 28 June 2017 on which the interest rate has been fixed, through an interest rate swap of the same notional value and duration, at 4.88 per cent per annum.

The Group's weighted cost of debt is therefore 3.57 per cent per annum.

Key Information

This statement and further information regarding the Company, including movements in the share price since the end of the period and the Group's most recent annual and interim reports, can be found at the Company's website www.fccpt.co.uk.

The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during September 2015 and it is expected that the unaudited NAV per share as at 30 September 2015 will be announced in October 2015.

Enquiries:

Richard Kirby

F&C REIT Property Asset Management plc

Tel: [phone]

Graeme Caton

Winterflood Securities Limited

Tel: [phone]

 

END

 

 

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