Last checked at 21 Jul 2014 07:00
To: Company Announcements
Date: 21 July 2014
Company: F&C Commercial Property Trust Limited
Subject: Net Asset Value and Property Acquisition
Net Asset Value
The unaudited net asset value ('NAV') per share of the Group as at 30 June 2014 was 115.1 pence. This represents an increase of 5.7 per cent from the unaudited NAV per share as at 31 March 2014 of 108.9 pence.
The unaudited NAV total return per share for the quarter to 30 June 2014 was 7.1 per cent, compared with a total return of 5.1 per cent from the IPD monthly index.
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 2014 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 2014 no adjustments were required to the NAV in respect of dividends for which the share price had gone ex-dividend.
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 2014 to 30 June 2014 (including the effect of gearing):
Pence per share | % of opening NAV | |
NAV per share as at 31 March 2014 | 108.9 | |
Unrealised increase in valuation of property portfolio * | 6.7 | 6.2 |
Movement in fair value of interest rate swap | 0.1 | 0.1 |
Movement in revenue reserve | (0.6) | (0.6) |
NAV per share as at 30 June 2014 | 115.1 | 5.7 |
* the ungeared increase in the valuation of the property portfolio over the quarter to 30 June 2014 was 5.0%, after allowing for capital expenditure and property purchases.
The net gearing at 30 June 2014 was 22.3%.#
# Net gearing: (Borrowings - cash) ÷ total assets (less current liabilities and cash).
Portfolio Analysis
Market Value £m | % of portfolio as at 30 June 2014 | % unrealised movement in quarter | |
Offices | 441.8 | 38.8 | 5.2 |
West End | 167.5 | 14.7 | 7.7 |
South East | 87.5 | 7.7 | 1.9 |
Rest of UK | 175.0 | 15.4 | 4.8 |
City | 11.8
| 1.0 | 3.5 |
Retail | 298.5 | 26.2 | 4.2 |
South East* | 284.2 | 24.9 | 4.4 |
Rest of UK | 14.3 | 1.3 | 1.1 |
Industrial | 160.4 | 14.0 | 2.9 |
South East | 16.4 | 1.4 | 6.6 |
Rest of UK | 144.0 | 12.6 | 2.5 |
Retail Warehouse | 210.4 | 18.5 | 6.3 |
Other | 29.0 | 2.5 | 2.2 |
Total Property Portfolio | 1,140.1 | 100.0 | 5.0 |
* Includes West End Retail
The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during September 2014 and it is expected that the unaudited NAV per share as at 30 September 2014 will be announced in October 2014.
Property Acquisition
The Company also announces its acquisition of a long leasehold in Unit 1, The Hive, Liverpool International Business Park, Speke, Liverpool at a price of £11.9 million to reflect a net initial yield of 6.45 per cent. This is a brand new production and distribution warehouse comprising 151,500 sq ft and is let in its entirety to Johnson Controls Automotive (UK) Ltd for a term of 15 years at a passing rent of £812,050 per annum. The lease is subject to a tenant's break in year 10 and is drawn on full repairing and insuring terms. A rent free period has been granted, expiring on 6 October 2014. Johnson Controls manufacture the car seats for the Jaguar Land Rover (JLR) Evoque which is produced at the nearby JLR Halewood plant. This acquisition provides a brand new purpose built warehouse, let to a strong covenant located in an established industrial location which is benefitting from the significant growth and success of the JLR plant at Halewood.
Enquiries:
Richard Kirby
F&C REIT Property Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268