Last checked at 27 Apr 2018 07:00
F&C Commercial Property Trust Ltd - Net Asset Value(s)F&C Commercial Property Trust Ltd - Net Asset Value(s)
PR Newswire
London, April 26
To: Company AnnouncementsDate: 27 April 2018Company: F&C Commercial Property Trust LimitedLEI: 213800A2B1H4ULF3K397Subject: Net Asset Value
Net Asset Value
The unaudited net asset value (‘NAV’) per share of the Group as at 31 March 2018 was 142.9 pence. This represents an increase of 1.2 per cent from the audited NAV per share as at 31 December 2017 of 141.2 pence and a NAV total return for the quarter of 2.3 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 31 March 2018 and is calculated after deduction of all dividends paid prior to that date. As at 31 March 2018, 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 141.40 pence per share at 31 March 2018, which represented a discount of 1.0 per cent to the NAV per share announced above. The share price total return for the quarter was 5.2 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 December 2017 to 31 March 2018 (including the effect of gearing):
| £m | Pence per share | % of opening NAV per share | |
| NAV as at 31 December 2017 | 1,128.6 | 141.2 | |
| Unrealised increase in valuation of property portfolio * | 15.8 | 1.9 | 1.4 |
| Movement in fair value of interest rate swap | 0.6 | 0.1 | 0.1 |
| Other net revenue | 9.4 | 1.2 | 0.8 |
| Dividends paid | (12.0) | (1.5) | (1.1) |
| NAV as at 31 March 2018 | 1,142.4 | 142.9 | 1.2 |
* The ungeared increase in the valuation of the property portfolio over the quarter to 31 March 2018 was 1.1%, after allowing for capital expenditure.
The net gearing at 31 March 2018 was 19.6%. #
# Net gearing: (Borrowings – cash) ÷ total assets (less current liabilities and cash).
Performance
The capital value growth over the quarter was 1.1%. The IPD Monthly Index recorded capital value growth of 1.0% over the same quarter.
At the sector level offices saw the most significant positive contribution especially from Rest of UK holdings and Cassini House, London W1. Retail returned 0.6% over the quarter compared to -0.2% from IPD as St. Christopher’s Place Estate continued to produce strong returns as a result of a number of lettings and asset management activity completing. The Industrial sector, in which the Company’s portfolio is underweight, continued to be the strongest performing sector with IPD reporting capital value growth of 3.1%, over the quarter.
Portfolio Analysis – Sector Breakdown
| Market Value £m | % of portfolio as at 31 March 2018 | % unrealised movement in quarter | |
| Offices | 524.8 | 36.6 | 2.0 |
| West End | 151.2 | 10.5 | 1.8 |
| South East | 130.3 | 9.1 | 0.3 |
| South West | 31.5 | 2.2 | 0.4 |
| Rest of UK | 191.8 | 13.4 | 3.6 |
| City | 20.0 | 1.4 | 1.2 |
| Retail | 443.3 | 30.8 | 0.6 |
| West End | 343.0 | 23.8 | 1.0 |
| South East | 68.3 | 4.8 | 0.0 |
| Rest of UK | 32.0 | 2.2 | -2.0 |
| Industrial | 241.4 | 16.8 | 0.8 |
| South East | 55.7 | 3.9 | 1.3 |
| Rest of UK | 185.7 | 12.9 | 0.7 |
| Retail Warehouse | 186.2 | 13.0 | -0.1 |
| Other | 40.8 | 2.8 | 3.8 |
| Total Property Portfolio | 1,436.5 | 100.0 | 1.1 |
Portfolio Analysis – Geographic Breakdown
| Market Value £m | % of portfolio as at 31 March 2018 | % unrealised movement in quarter | |
| West End | 494.2 | 34.4 | 1.3 |
| South East | 359.2 | 25.0 | 0.6 |
| Midlands | 178.2 | 12.4 | 0.0 |
| Scotland | 172.2 | 12.0 | 3.1 |
| North West | 152.6 | 10.6 | 1.4 |
| South West | 31.5 | 2.2 | 0.4 |
| Eastern | 28.6 | 2.0 | 0.9 |
| Rest of London | 20.0 | 1.4 | 1.2 |
| Total Property Portfolio | 1,436.5 | 100.0 | 1.1 |
Top Ten Investments
| Sector | |
| Properties valued in excess of £250 million | |
| London W1, St Christopher’s Place Estate * | Retail |
| Properties valued between £100 million and £150 million | |
| London SW1, Cassini House, St James’s Street | Office |
| Properties valued between £70 million and £100 million | |
| Newbury, Newbury Retail Park | Retail Warehouse |
| Properties valued between £50 million and £70 million | |
| Solihull, Sears Retail Park | Retail Warehouse |
| London SW19, Wimbledon Broadway | Retail |
| Properties valued between £40 million and £50 million | |
| Crawley, Leonardo House, Manor Royal | Office |
| Winchester, Burma Road | Other |
| Manchester, 82 King St | Office |
| Properties valued between £30 million and £40 million | |
| Aberdeen, Unit 1 Prime Four Business Park, Kingswells | Office |
| Aberdeen, Unit 2 Prime Four Business Park, Kingswells | Office |
*Mixed use property of retail, office and residential space.
Summary Balance Sheet
| £m | Pence per share | % of Net Assets | |
| Property Portfolio per Valuation Report | 1,436.5 | 179.7 | 125.8 |
| Adjustment for lease incentives | (20.2) | (2.5) | (1.8) |
| Fair Value of Property Portfolio | 1,416.3 | 177.2 | 124.0 |
| Debtors | 23.9 | 3.0 | 2.1 |
| Cash | 31.1 | 3.9 | 2.7 |
| Interest rate swap | 0.3 | - | - |
| Current Liabilities | (19.8) | (2.5) | (1.7) |
| Total Assets (less current liabilities) | 1,451.8 | 181.6 | 127.1 |
| Non-Current liabilities | (1.6) | (0.2) | (0.1) |
| Interest-bearing loans | (308.1) | (38.5) | (27.0) |
| Net Assets at 31 March 2018 | 1,142.1 | 142.9 | 100.0 |
Property Purchases and Sales
There were no purchases or sales in 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 21 June 2021 on which the interest rate has been fixed, through an interest rate swap of the same notional value and duration, at 2.522 per cent per annum. In addition, the Board has agreed an additional revolving credit facility of £50 million with Barclays over the same period, to be used for ongoing working capital purposes and to provide the Group with the flexibility to acquire further property should the opportunity arise.
The Group’s weighted average cost of debt is 3.3 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 fccpt.co.uk.
The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during June 2018 and it is expected that the unaudited NAV per share as at 30 June 2018 will be announced in July 2018.
This announcement contains inside information.
Enquiries:
Richard KirbyBMO REP Asset Management plcTel: 0207 499 2244
Graeme CatonWinterflood Securities LimitedTel: 0203 100 0268