To:
Company Announcements
Date: 25
October 2018
Company: F&C UK Real Estate
Investments Limited
LEI:
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 Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01481 745001
Fax: 01481 745051
Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: 0207 628 8000
Fax: 0131 225 2375