NAV as at 30 September 2015 and Quarterly Update

RNS Number : 7083C

Ediston Property Inv Comp PLC

20 October 2015

 

20 October 2015

Ediston Property Investment Company plc

NAV as at 30 September 2015 and Quarterly Update

Ediston Property Investment Company plc (LSE: EPIC) (the "Company") announces its Net Asset Value for the quarter ended 30 September 2015.

Quarter 4 Highlights

·     NAV per share at 30 September 2015 increased by 1.83 per cent to 106.51 pence (30 June 2015: 104.60 pence)

·     Raised gross proceeds of £35.9 million through the issue of 33,263,931 Ordinary Shares at 108.00 pence per share, a premium of 3.25 per cent to 30 June NAV.

·     Fair Value independent valuation of the property portfolio as at 30 September 2015 of £136.4 million, a 2.2 per cent like-for-like increase on the valuation at 30 June 2015, (ignoring the properties acquired during the period).

·     Three properties acquired during the period for £10 million (net of acquisition costs).

·     New letting to Capita Business Services Limited in Edinburgh commenced in July for a 15-year period at a rent equating to £676,136 per annum (£25.14/sq ft).

Net Asset Value

The Company's unaudited NAV per share as at 30 September 2015 was 106.51 pence.  As at 30 September 2015, the Company owned investment properties with a fair value of £136.4 million and had cash and cash equivalent balances of approximately £41 million, the majority of which are expected to be invested by 31 December 2015.  The long-term debt of £40 million is not due to be repaid until May 2025.

EPRA NAV is not reported separately in this update as it is the same as the NAV reported this quarter.

The unaudited NAV of the Company at 30 September 2015 was £136.61 million, or 106.51 pence per share, an increase of 1.83 per cent on the Company's NAV as at 30 June 2015:

	Pence Per Share	£ million
NAV at 30 June 2015	104.60	99.37
Equity raised in the period (net of issue premium)	0.00	34.80
NAV uplift on equity issuance at a premium in the period	0.88	1.13
Costs associated with equity raise	(0.53)	(0.69)
Transaction costs on acquisitions during the period	(0.36)	(0.47)
Valuation uplift in property portfolio	2.14	2.75
Income earned for the period	1.61	2.06
Expenses for the period	(0.57)	(0.73)
Dividend paid in the period (on a weighted average)	(1.26)*	(1.61)
NAV at 30 September 2015	106.51	136.61

* Three dividends of 0.4583 pence per share each were paid in July, August and September 2015 in respect of the three months ended 31 August 2015. The cumulative amount paid on a share in issue for the whole period was therefore 1.375 pence; while a share issued pursuant to the Company's fundraising in July received a cumulative dividend of 0.9166 pence.  On a weighted average basis this equates to 1.26 pence per share.

The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards.  It incorporates the independent portfolio valuation as at 30 September 2015, equity raised in the period and income for the quarter, but does not include a provision for any accrued dividend.

Portfolio activity

During the quarter, the Company acquired three leisure properties, in Hartlepool, Liverpool and Telford, for a total of £10 million, reflecting a yield of 8.60 per cent.  The properties offer a number of opportunities for the investment adviser to implement its particular style of asset management in order to enhance the Company's income profile and returns.

Dividends

Three dividends of 0.4583 pence per share each were paid in July, August and September 2015 in respect of the three months ended 31 August 2015. The cumulative amount paid in the quarter was, therefore, 1.375 pence per share (in respect of shares in existence for the whole of the period). In the absence of unforeseen circumstances, the Board intends to pay further monthly dividends of 0.4583 pence per share, implying an annualised dividend yield of 5.5%, calculated by reference to the Company's issue price of 100p per share as set out in its October 2014 prospectus.

Post quarter-end activity

A dividend of 0.4583 pence per share will be paid for the month to 30 September 2015.  This dividend will go ex-dividend on 22 October 2015 and will be paid on 30 October 2015.

Forthcoming events

The next independent quarterly valuation of the property portfolio will be conducted by Knight Frank as at 31 December 2015 with the NAV per share at the same date announced in January 2016.

Enquiries:

Will Barnett - Canaccord Genuity, 0207 523 8000

Calum Bruce - Investment Adviser, Ediston Properties Limited, 0131 225 5599

Danny O'Neill - Investment Adviser, Ediston Properties Limited, 0131 225 5599

Martin Cassels - Company Secretary, R&H Fund Services Limited, 0131 524 6140

James Whitmore/Jeremy Carey - Tavistock 020 7920 3150

Notes to Editors

Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a premium listing on the Main Market of the London Stock Exchange. The Company invests in UK commercial real estate assets to achieve its objective of providing its shareholders with an attractive level of income together with the potential for capital and income growth. It invests principally in three commercial property sectors: office, retail (including retail warehouses) and industrial, without regard to a traditional property market relative return benchmark. The Company will seek to acquire assets which offer (or have the potential to offer) a secure income stream, with unexpired terms in line with the market average, secured against good covenants. It will typically target assets which have a net initial yield in excess of 6.5 per cent., although it may hold assets with a lower net initial yield if there are portfolio benefits.

The Company launched in October 2014 with the acquisition of an initial £76.7m diversified portfolio of UK commercial properties.

Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.

 

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