25 Oct 2018 07:00
F&C UK Real Estate Investments Ltd - Net Asset ValueF&C UK Real Estate Investments Ltd - Net Asset Value
PR Newswire
London, October 24
To: Company AnnouncementsDate: 25 October 2018Company: F&C UK Real Estate Investments LimitedLEI: 231801XRCB89W6XTR23
Subject: Net Asset Value
Net Asset Value
The unaudited net asset value per share of F&C UK Real Estate Investments Limited (“FCRE”) as at 30 September 2018 was 107.3 pence. This represents a decrease of 1.1 per cent from the net asset value per share as at 30 June 2018 of 108.5 pence and a NAV total return for the quarter of 0.1 per cent.
The net asset value is based on the external valuation of the Group's property portfolio prepared by Cushman & Wakefield.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
The net asset value includes all income to 30 September 2018 and is calculated after deduction of all dividends paid prior to that date. It does not include a provision for the dividend for the quarter to 30 September 2018, which is expected to be paid in December 2018.
Share Price
The share price was 95.6 pence per share at 30 September 2018, which represented a discount of 10.9 per cent to the NAV per share announced above. The share price total return for the quarter was -3.0 per cent.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per share calculated under IFRS over the period from 30 June 2018 to 30 September 2018.
| Pence per share | % of opening NAV | |
| Net asset value per share as at 30 June 2018 | 108.5 | |
| Unrealised movement in valuation of property portfolio (including the effect of gearing) | (1.0) | (0.9)* |
| Movement in revenue reserves | (0.2) | (0.2) |
| Net asset value per share as at 30 September 2018 | 107.3 | (1.1) |
* The un-geared decrease in the valuation of the property portfolio over the quarter to 30 September 2018 was 0.6%.
The net gearing as at 30 September 2018 was 26.3% #
# Bank debt (less net current assets) divided by fair value of investment properties
Performance
The capital value of the portfolio decreased by 0.6% over the quarter, compared to the IPD Monthly Index which recorded capital value growth of 0.4% over the period. The retail market remains a challenge with High Street and retail warehouse capitalisation rates moving out over the quarter. The Company has also been impacted by the Homebase Company Voluntary Arrangement (‘CVA’) which specifically affects the values of properties held at Enterprise Way, Luton and Northfields Road, Rotherham. Active asset management initiatives are focused on restoring income and value.
| Portfolio Analysis | £m | % of portfolio as at 30 September 2018 | % capital value movement in quarter |
| Offices | 89.9 | 25.7 | 0.7 |
| West End | 28.2 | 8.1 | - |
| South East | 29.3 | 8.3 | - |
| Rest of UK | 32.4 | 9.3 | 2.1 |
| Retail | 57.7 | 16.5 | (3.4) |
| West End | 8.5 | 2.4 | - |
| Rest of London | 3.4 | 1.0 | (6.8) |
| South East | 17.5 | 5.0 | (4.1) |
| Rest of UK | 28.3 | 8.1 | (3.6) |
| Industrial | 131.9 | 37.6 | 1.7 |
| South East | 131.9 | 37.6 | 1.7 |
| Retail Warehouse | 70.9 | 20.2 | (4.1) |
| Rest of UK | 61.4 | 17.5 | (5.3) |
| Rest of London | 9.5 | 2.7 | 4.4 |
| Total Property | 350.4 | 100.0 | (0.6) |
Property Purchases and Sales
During the quarter, the Group completed the sale of an office building, in Swindon for £1.1 million.
There were no other sales or purchases in the quarter.
Summary Balance Sheet
| £m | Pence per share | % of Net Assets | |
| Property Portfolio per Valuation Report | 350.4 | 145.5 | 135.6 |
| Adjustment for lease incentives | (4.4) | (1.8) | (1.7) |
| Fair Value of Property Portfolio | 346.0 | 143.7 | 133.9 |
| Cash | 15.7 | 6.5 | 6.1 |
| Trade and other receivables | 6.0 | 2.5 | 2.3 |
| Trade and other payables | (7.0) | (2.9) | (2.7) |
| Interest-bearing loans | (102.4) | (42.5) | (39.6) |
| Net Assets at 30 September 2018 | 258.3 | 107.3 | 100.0 |
The property portfolio will next be valued by an external valuer during December 2018 and the net asset value per share as at 31 December 2018 will be announced in January 2019.
This announcement contains inside information.
Enquiries:The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QLTel: 01481 745001Fax: 01481 745051Peter LoweScott MacraeF&C Investment Business LtdTel: 0207 628 8000Fax: 0131 225 2375