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17 Nov 2008 14:51
CLOSE HIGH INCOME PROPERTIES PLC (the "Company")
ANNOUNCEMENT OF NAV
The board of Close High Income Properties PLC advises that as at close of business on 31 October 2008, the unaudited net asset value per Ordinary Share of 1 penny each of the Company was 58.05 pence (30 September 2008: 62.90 pence). The unaudited net asset value per "D" Ordinary Share of 1 penny each was 36.64 pence (30 September 2008: 36.86 pence). This represents a decrease of 7.71 per cent per Ordinary Share and a decrease of 0.59 per cent per "D" Ordinary Share.
The net asset value is based on the external valuation of the Company's property portfolio prepared by DTZ Debenham Tie Leung Limited at 30 September 2008. It also incorporates the movement in the interest rate swap valuations as seen in the table below.
During the month the market value of the interest rate swap entered into by Ordinary Share decreased by £2.18 million to a liability of £2.83 million (30 September 2008: liability of £0.65 million) and the market value of the interest rate swap entered into by "D" Ordinary Share decreased by £0.08 million to an asset of £0.02 million (30 September 2008: asset of £0.10 million). The movements during the month represented a decrease against NAV of 4.63 per cent per Ordinary Share and a decrease of 0.81 per cent per "D" Ordinary Share. Whilst the total market valuation of the interest rate swaps is currently in deficit, their value will run to zero over the term of the contracts. The swaps continue to provide a fixed rate of interest to the Company. It is not the intention of the Company to dispose of the swaps and realise the deficit as the Company continues to benefit from fixed rate funding.
There were no property sales completed during October 2008.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
Set out below is a breakdown of the change to the unaudited net asset values per share calculated over the period from 1 October 2008 to 31 October 2008.
|
Ordinary Share |
"D" Ordinary Share |
|||
|
Pence per share |
% of opening NAV |
Pence per share |
% of opening NAV |
|
|
Net asset value per share as at 30 September 2008 |
62.90 |
36.86 |
||
|
Capital distribution paid to shareholders |
(1.63) |
(2.58) |
- |
- |
|
Increase / (decrease) in interest rate swap valuation |
(2.91) |
(4.63) |
(0.30) |
(0.81) |
|
Movement in revenue reserves |
(0.31) |
(0.50) |
0.08 |
0.22 |
|
Net asset value per share as at 31 October 2008 |
58.05 |
(7.71) |
36.64 |
(0.59) |
The property portfolio will next be valued by an external valuer at 31 December 2008 and the net asset value per share as at 30 November 2008 will be announced in December 2008.
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