Last checked at 31 Oct 2008 09:44
To: Company Announcements
Date: 31 October 2008
Company: F&C Commercial Property Trust Limited
Subject: Net Asset Value
Net Asset Value
The unaudited net asset value ('NAV') per share of F&C Commercial Property Trust Limited as at 30 September 2008 was 103.4 pence. This represents a decrease of 7.8 per cent from the published NAV per share as at 30 June 2008 of 112.2 pence.
The NAV has been calculated under International Financial Reporting Standards ('IFRS'). It is based principally on the external valuation of the Company's direct property portfolio prepared by DTZ Debenham Tie Leung Limited.
As previously announced, the Board has appointed an independent valuer to value the Company's unitised investments in two indirectly held property funds, the Industrial Property Investment Fund and The Mall Fund (the 'Indirect Holdings').,The NAV per share as at 30 September 2008 incorporates the Indirect Holdings at the Directors' valuation which reflects these independently produced values. The Company's auditors are satisfied that this treatment meets the requirements of IFRS.
The basis of valuation of the Indirect Holdings will continue to be reviewed regularly by the Board, with independent advice as appropriate, and amended, as required, to reflect changes in market conditions and practice.
The NAV includes all income to 30 September 2008 and is calculated after deduction of all dividends paid prior to that date. It does not include provision for the quarterly interim dividend, which had an ex-dividend date of 24 September 2008 and which was paid on 24 October 2008. The adjusted NAV per share after deducting such quarterly dividend payment was 101.9 pence.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV per share for the period from 30 June 2008 to 30 September 2008 (including the effect of gearing):
| Pence per share | % of opening NAV | |
| Published NAV per share as at 30 June 2008 | 112.2 | |
| Unrealised decrease in valuation of direct property portfolio | (6.0) | (5.3)* |
| Unrealised decrease in valuation of Indirect Holdings | (2.3) | (2.1) |
| Realised loss on sale of direct property | (0.3) | (0.3) |
| Movement in revenue reserve | (0.2) | (0.1) |
| Published NAV per share as at 30 September 2008 | 103.4 | (7.8) |
| Published NAV per share as at 30 September 2008 (adjusted for dividends for which the share price had gone ex-dividend) | 101.9 |
* the ungeared decrease in the valuation of the direct property portfolio over the quarter to 30 September 2008 was 5.4%.
Portfolio Analysis
| £m | % of portfolio as at 30 September 2008 | % movement in quarter | |
| Offices | 366.5 | 44.2 | (6.5) |
| West End | 176.6 | 21.3 | (5.7) |
| South East | 108.8 | 13.1 | (5.7) |
| Rest of UK | 72.3 | 8.7 | (8.3) |
| City | 8.8 | 1.1 | (14.8) |
| Retail | 205.3 | 24.8 | (4.1) |
| South East | 180.7 | 21.8 | (3.7) |
| Rest of UK | 24.6 | 3.0 | (7.2) |
| Industrial | 80.8 | 9.7 | (14.3) |
| South East | 16.4 | 2.0 | (4.4) |
| Rest of UK | 19.4 | 2.3 | (11.1) |
| Indirect | 45.0 | 5.4 | (18.6) |
| Shopping Centres | 9.7 | 1.2 | (38.7) |
| Direct* | - | - | - |
| Indirect | 9.7 | 1.2 | (38.7) |
| Retail Warehouse | 167.0 | 20.1 | (3.4) |
| Total Property | 829.3 | 100.0 | (6.7) |
* The sale of the Company's only directly held shopping centre, Colchester, Lion Walk, completed on 18 July 2008.
The direct property portfolio will next be valued by an external valuer during December 2008 and the NAV per share as at 31 December 2008, which will also include the valuation of the Indirect Holdings on that date, will be announced in January 2009.
Enquiries:
Richard Kirby
F&C REIT Asset Management LLP
Tel: 0207 499 2244
Graham Reaves
G&N Collective Funds Services Limited
Tel: 0131 226 4411