TIDMFCRE
To: RNS
Date: 25 March 2019
From: F&C UK Real Estate Investments Limited
LEI: 231801XRCB89W6XTR23
Interim results in respect of the six month period ended 31 December 2018
- Net asset value total return* of 0.0 per cent for the 6 months
- Portfolio ungeared total return* of 1.0 per cent for the 6 months
- Annualised dividend yield* of 5.4 per cent based on the period end share
price
- Dividend cover* was 90.3 per cent for the period
* See Alternative Performance Measures
The Chairman, Vikram Lall, stated:
The Company has experienced six months of challenging conditions in the UK
commercial property market with portfolio capital values decreasing in the
period by 1.5 per cent and delivering a total return of 1.0 per cent. The net
asset value ('NAV') total return* per share for the period was nil and the NAV
per share at the period end was 106.0 pence.
There was caution in the market given the uncertainty surrounding Brexit and
concerns over the retail sector. Against this backdrop, the share price fell by
7.6 per cent over the six months. The share price total return* was -5.0 per
cent over the period and the shares were trading at a discount* to the NAV of
13.0 per cent at the period end, compared to a discount of 8.0 per cent as at
30 June 2018. This trend has been experienced by other companies in the sector.
Property Market
The UK commercial property market delivered a total return of 2.4 per cent as
measured by the MSCI UK Quarterly Property Index for all assets in the six
months to 31 December 2018. The return for the year to December was 6.2 per
cent. Momentum slowed during the six-month period with both all-property
capital growth and rental value growth turning negative in the latter half of
the period. This was in part due to significant markdowns for retail property,
with regional retail and shopping centres especially affected. The industrial
and distribution sector continued its strong out-performance, particularly in
the South East, but the pace has eased. The office market performed well, led
by offices in the regions and in the City of London. Total returns for
Alternatives also exceeded the all-property average. Investment activity
moderated from the levels of a year earlier but remained well above the
long-term average, with institutions and overseas purchasers both being net
investors in property. Post period there are, however, indications of a marked
slowdown in volumes.
In the six months to 31st December 2018, the income return for the Index held
steady and the all-property initial yield was unchanged at 4.5 per cent.
Property Portfolio
The Company's property portfolio produced an ungeared return* of 1.0 per cent
over the six months to December 2018, trailing the MSCI UK Quarterly Property
Index which recorded total returns of 2.4 per cent. The portfolio continues to
deliver outperformance against the index over the medium term and the longer
term. The main driver of performance for the period was again the above market
income return of 2.6 per cent. This management of the income stream has been
the mainstay of the portfolio's long-term outperformance.
In keeping with the wider market and continuing the main theme from the last
reporting period, positive investor sentiment towards the Industrial sector and
successful leasing and asset management activity on the held assets led to the
portfolio's industrial and distribution assets again being the key contributors
to Company performance. The structural overweight to this sector verses the
Index continues to be beneficial with 38.2 per cent of the Company's asset base
classified as South-East Industrials. The portfolio's Offices performed
strongly over the period to December, particularly the regional assets, led by
asset management and leasing initiatives at Edinburgh Park (HSBC), Royal
Standard Place, Standard Hill, Nottingham (The College of Law) and Strathclyde
Business Park, Glasgow (Virgin Media).
Retail continues to be of concern, despite the recent repricing in the sector.
The Company does not own any shopping centres or department stores but was not
immune over the period where performance of the retail warehouse sub-sector was
impacted by the Company Voluntary Arrangement ('CVA') of Homebase. While none
of the Company's properties affected by the CVA were earmarked for closure in
relation to this event, rent receivable and corresponding valuations suffered.
The Manager is progressing business plans in relation to these assets. In one
case this has included the completion of an insurance lease to a major UK
retailer with the head income unaffected. Another is subject to a planning
application linked to a proposed pre-let of accommodation to a food-store with
adjoining drive through.
With notable uncertainty in parts of the leasing market, continued focus on the
basics of keeping properties let and occupied has kept the void rate stable at
4.3 per cent at the period close. This has been significantly reduced post
period following the successful leasing of the Company's largest void (the
office asset at Standard Hill, Nottingham) as well as the two vacant floors at
the Company's largest asset (Berkeley Street, London). The initial yield was
5.1 per cent at period end and the portfolio delivers an average weighted
unexpired lease term of 6.1 years to earliest termination.
The strategy for portfolio composition continues to be the retention of an
overweight position to Industrial and Logistics property, continued review of
the Alternatives sector for viable investment opportunities and an ongoing
active appraisal of the Company's retail exposure given the specific problems
currently impacting this sector. The Manager's primary focus has been on the
disposal of non-core and secondary assets alongside deployment of Company
resources to attractive asset management initiatives within the portfolio. The
Company has completed few transactions over the period other than continuing
the process of disposing of non-core retail assets. A shop unit in Swindon was
disposed of in July, and that has been followed by further activity around the
period close. Since the start of 2019 a sale of a Retail Warehouse asset in
Gateshead has completed with terms agreed in respect of a further sale from the
high street portfolio.
Dividends
The first interim dividend for the year ending 30 June 2019 of 1.25 pence per
share was paid in December 2018, with a second interim dividend of 1.25 pence
per share to be paid on 29 March 2019 to shareholders on the register on 15
March 2019.
The dividend cover* for the six months was 90.3 per cent, compared with a
dividend cover of 95.7 per cent for the year ended 30 June 2018.
The dividend is currently at a sustainable level, and in the absence of
unforeseeable circumstances, it is expected that the Company will continue to
pay quarterly dividends at this rate, the equivalent of 5.0 pence per share per
annum.
Borrowings
The Company currently has borrowings of GBP97 million made up of a GBP90 million
non-amortising term loan facility agreement with Canada Life Investments which
expires in November 2026 and a GBP20 million 5-year revolving credit facility
agreement with Barclays Bank plc which expires in November 2020, GBP7 million of
which is currently drawn down. Net gearing* represented 26.6 per cent of the
investment properties of the Company as at 31 December 2018. The weighted
average interest rate (including amortisation of refinancing costs) on the
Company's total current borrowings is 3.2 per cent. The Company continues to
maintain a prudent attitude to gearing.
The Company had GBP9.4 million of cash available at 31 December 2018 with a
further GBP13.0 million of the revolving credit facility also available if
required.
Change of Company Name
Shareholder approval was granted at the AGM in November 2018 to change the
Company name to BMO Real Estate Investments Limited. This will align the
Company's name with the Investment Manager and will be effective from 29 April
2019.
Responsible Property Investment
The Company continues to make good progress with its Responsible Property
Investment ('RPI') strategy and set out a series of commitments and targets.
Supported by industry specialist Hillbreak, the Manager has developed a
framework by which to appraise the Environmental, Social and Governance ('ESG')
credentials of the portfolio for the principle purpose of understanding and
assessing ESG risk and profile and integrating necessary measures into the
asset business planning process.
The Company submitted to the Global Real Estate Sustainability Benchmark
('GRESB') in 2018, achieving a score in line with first time participation, and
aims to demonstrate year on year improvement going forward. Recognising that
GRESB delivers a single metric against a highly heterogenous asset class, the
Company intends to produce an inaugural RPI Report shortly and follow this with
publication of annual RPI Reports alongside the Annual Report & Accounts to
provide greater transparency of performance against ESG factors.
Both the Board and the Manager recognise the importance of maintaining focus on
ESG related matters and in continuing to improve insight and capability within
this fast-evolving landscape.
Outlook
The short-term outlook is likely to be dominated by Brexit and its economic and
political ramifications. This could lead to a period of market volatility and
heightened levels of risk aversion from both occupiers and investors. The fall
in retail values may also have further to run. The industrials market is likely
to continue to benefit from structural change, but perhaps not to the extent
witnessed recently. The scope for rental uplifts may be limited by modest rates
of economic growth and margin pressure. Any forthcoming rises in interest rates
are expected to be gradual and modest but may affect parts of the market which
are already highly priced. The market has now passed the peak in the current
cycle and for the next few years, performance is expected to be driven by the
income return.
Whilst remaining cautious in these uncertain times, we believe that the
Company's balanced portfolio offers relatively attractive defensive
characteristics, and a sustainable income return, combined with some value
enhancing near-term asset management opportunities.
* See Alternative Performance Measures
Enquiries to:
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
P Lowe, S Macrae
BMO Investment Business Limited
Tel: 0207 628 8000
Fax: 0131 225 2375
F&C UK Real Estate Investments Limited
Condensed Consolidated Statement of Comprehensive Income
Six months Six months
to 31 to 31 Year to
December December 30 June
Notes 2018 2017 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue
Rental income 9,380 9,403 19,134
Other income - 4,375 4,375
Total revenue 9,380 13,778 23,509
Gains/(losses) on investment
properties
Gains on sale of investment properties 5 24 20 1,568
realised
Unrealised (losses)/gains on 5 (5,466) 7,711 14,851
revaluation of investment properties
Total Income 3,938 21,509 39,928
Expenditure
Investment management fee (1,064) (1,052) (2,156)
Other expenses 2 (943) (866) (1,619)
Total expenditure (2,007) (1,918) (3,775)
Net operating profit before finance 1,931 19,591 36,153
costs and taxation
Net finance costs
Interest receivable 4 1 2
Finance costs (1,797) (1,766) (3,550)
(1,793) (1,765) (3,548)
Net profit from ordinary activities 138 17,826 32,605
before taxation
Taxation on profit on ordinary (147) (147) (295)
activities
(Loss)/profit for the period (9) 17,679 32,310
Basic and diluted earnings per share 4 0.0p 7.3p 13.4p
F&C UK Real Estate Investments Limited
Condensed Consolidated Balance Sheet
31 December 31 December 30 June
2018 2017 2018
Notes (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Investment properties 5 343,093 346,449 349,268
Trade and other receivables 3,354 3,894 3,692
346,447 350,343 352,960
Current assets
Trade and other receivables 2,394 1,277 1,282
Cash and cash equivalents 9,354 9,578 15,037
11,748 10,855 16,319
Total assets 358,195 361,198 369,279
Non-current liabilities
Interest-bearing bank loans 6 (96,418) (102,170) (102,299)
Trade and other payables (158) (248) (291)
(96,576) (102,418) (102,590)
Current liabilities
Trade and other payables (6,383) (6,130) (5,279)
Tax payable (147) (147) (294)
(6,530) (6,277) (5,573)
Total liabilities (103,106) (108,695) (108,163)
Net assets 255,089 252,503 261,116
Represented by:
Share capital 8 2,407 2,407 2,407
Special distributable 177,161 177,161 177,161
reserve
Capital reserve 72,251 69,005 77,693
Revenue reserve 3,270 3,930 3,855
Equity shareholders' funds 255,089 252,503 261,116
Net asset value per share 9 106.0p 104.9p 108.5p
F&C UK Real Estate Investments Limited
Condensed Consolidated Statement of Changes in Equity
For the period ended 31 December 2018
Special
Share Distributable Capital Revenue
Capital Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2018 2,407 177,161 77,693 3,855 261,116
Loss for the period - - - (9) (9)
Dividends paid - - - (6,018) (6,018)
Transfer in respect of
losses on investment - - (5,442) 5,442 -
properties
At 31 December 2018 2,407 177,161 72,251 3,270 255,089
For the period ended 31 December 2017
Special
Share Distributable Capital Revenue
Capital Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2017 2,407 177,161 61,274 - 240,842
Profit for the period - - - 17,679 17,679
Dividends paid - - - (6,018) (6,018)
Transfer in respect of
gains on investment - - 7,731 (7,731) -
properties
At 31 December 2017 2,407 177,161 69,005 3,930 252,503
For the year ended 30 June 2018
Special
Share Distributable Capital Revenue
Capital Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2017 2,407 177,161 61,274 - 240,842
Profit for the year - - - 32,310 32,310
Dividends paid - - - (12,036) (12,036)
Transfer in respect of
gains on investment - - 16,419 (16,419) -
properties
At 30 June 2018 2,407 177,161 77,693 3,855 261,116
F&C UK Real Estate Investments Limited
Condensed Consolidated Statement of Cash Flows
Six months to Six months to 31 Year to
31 December December 2017 30 June
Notes 2018 (unaudited) 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Net profit for the period before taxation 139 17,826 32,605
Adjustments for:
Gains on sale of investment properties 5 (24) (20) (1,568)
realised
Unrealised losses/(gains) on 5 5,466 (7,711) (14,851)
revaluation of
investment properties
(Increase)/decrease in operating trade
and other receivables (774) 14 211
Increase/(decrease) in operating trade
and other 971 3 (805)
payables
Interest received (4) (1) (2)
Finance costs 1,797 1,766 3,550
7,571 11,877 19,140
Taxation paid (294) (306) (306)
Net cash inflow from operating activities 7,277 11,571 18,834
Cash flows from investing activities
Purchase of investment properties - (10,191) (10,190)
Capital expenditure 5 (341) (986) (1,067)
Sale of investment properties 5 1,074 3,293 9,242
Interest received 4 1 2
Net cash inflow/(outflow) from investing 737 (7,883) (2,013)
activities
Cash flows from financing activities
Dividends paid 3 (6,018) (6,018) (12,036)
Bank loan interest paid (1,679) (1,657) (3,313)
Bank loan repaid, net of costs - Barclays (6,000) (3,000) (3,000)
Net cash outflow from financing activities (13,697) (10,675) (18,349)
Net decrease in cash and cash equivalents (5,683) (6,987) (1,528)
Opening cash and cash equivalents 15,037 16,565 16,565
Closing cash and cash equivalents 9,354 9,578 15,037
F&C UK Real Estate Investments Limited
Notes to the Condensed Financial Statements
for the six months to 31 December 2018
1. General information
The condensed consolidated financial statements have been prepared in
accordance with the Disclosure and Transparency Rules of the United Kingdom
Financial Conduct Authority, IAS 34 'Interim Financial Reporting' and the
accounting policies set out in the statutory accounts of the Group for the year
ended 30 June 2018. The condensed consolidated financial statements do not
include all of the information required for a complete set of IFRS financial
statements and should be read in conjunction with the consolidated financial
statements for the Group for the year ended 30 June 2018 which were prepared
under full IFRS requirements. The accounting policies used in preparation of
the condensed consolidated financial statements are consistent with those of
the consolidated financial statements of the Group for the year ended 30 June
2018.
2. Other expenses Six months to Six months to Year to
31 December 31 December 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
Direct operating expenses of let rental 379 457 672
property
Direct operating expenses of vacant 142 (7) 109
property
Provision for bad debts - 3 12
Administrative fee 54 52 105
Valuation and other professional fees 113 114 234
Directors' fees 77 77 154
Other expenses 178 170 333
943 866 1,619
3. Dividends
Six months to Six months to Year ended
31 December 2018 31 December 2017 30 June 2018
Rate Rate Rate
GBP'000 (pence) GBP'000 (pence) GBP'000 (pence)
Property Income
Distributions:
Fourth interim for the 3,009 1.25 3,009 1.25 3,009 1.25
prior year
First interim 3,009 1.25 3,009 1.25 3,009 1.25
Second interim - - - - 3,009 1.25
Third interim - - - - 3,009 1.25
6,018 2.50 6,018 2.50 12,036 5.00
A second interim dividend for the year to 30 June 2019, of 1.25 pence per
share, will be paid on 29 March 2019 to shareholders on the register at close
of business on 15 March 2019.
4. Earnings per share
Earnings per Ordinary Share are based on 240,705,539 Ordinary Shares, being the
weighted average number of shares in issue during the period (31 December 2017:
240,705,359 and 30 June 2018: 240,705,539). Earnings for the six months to 31
December 2018 should not be taken as a guide to the results for the year to 30
June 2019.
5. Investment properties
Six months to Six months to Year to
31 December 2018 31 December 2017 30 June
GBP'000 GBP'000 2018
GBP'000
Freehold and leasehold
properties 353,625 335,350 335,350
Opening market value
Purchase of investment - 10,191 10,190
properties
Capital expenditure 341 986 1,067
Sales net proceeds (1,074) (3,293) (9,242)
(losses)/gains on sales (3,426) 900 1,686
Unrealised losses/(gains) 3,450 (880) (118)
realised during the period
Unrealised gains on investment 4,718 12,013 20,337
properties
Unrealised losses on investment (10,184) (4,302) (5,486)
properties
Movement in lease incentive (150) (235) (159)
receivable
Closing market value 347,300 350,730 353,625
Adjustment for lease incentives (4,207) (4,281) (4,357)
Balance sheet carrying value 343,093 346,449 349,268
All the Group's investment properties were valued as at 31 December 2018 by
qualified professional valuers working in the company of Cushman & Wakefield.
All such valuers are chartered surveyors, being members of the Royal
Institution of Chartered Surveyors ('RICS'). There were no significant changes
to the valuation techniques used during the period and these valuation
techniques are detailed in the consolidated financial statements as at and for
the year ended 30 June 2018. The market value of these investment properties
amounted to GBP347,300,000 (31 December 2017: GBP350,730,000; 30 June 2018: GBP
353,625,000), however an adjustment has been made for lease incentives of GBP
4,207,000 that are already accounted for as an asset (31 December 2017: GBP
4,281,000; 30 June 2018: GBP4,357,000).
6. Interest-bearing bank loans
On 9 November 2015, the Group entered into an eleven year GBP90 million
non-amortising term loan agreement with Canada Life and a five year GBP20 million
revolving credit facility agreement with Barclays. The interest rate payable
on the Canada Life loan is at a fixed rate of 3.36% per annum and the interest
payable on the Barclays loan is at a variable rate based on 3 month LIBOR plus
a margin of 1.45% per annum. During the period, the Company repaid GBP6 million
of the revolving credit facility to Barclays.
At 31 December 2018 borrowings of GBP97 million were drawn down. The balance
sheet value is stated at an amortised cost of GBP96,418,000 (31 December 2017: GBP
102,170,000 and 30 June 2018: GBP102,299,000). Amortised cost is calculated by
deducting loan arrangement costs, which are amortised back over the life of the
loan. The fair value of the Canada Life loan is shown in note 7.
7. Fair value measurements
The fair value measurements for financial assets and financial liabilities are
categorised into different levels in the fair value hierarchy based on the
inputs to valuation techniques used.
The different levels are defined as follows:
· Level 1 - Unadjusted, fully accessible and current quoted prices in
active markets for identical assets or liabilities. Examples of such
instruments would be investments listed or quoted on any recognised stock
exchange.
· Level 2 - Quoted prices for similar assets or liabilities, or other
directly or indirectly observable inputs which exist for the duration of the
period of investment. Examples of such instruments would be those for which
the quoted price has been suspended, forward exchange rate contracts and
certain other derivative instruments.
· Level 3 - External inputs are unobservable. Fair value is the
Directors' best estimate, based on advice from relevant knowledgeable experts,
use of recognised valuation techniques and on assumptions as to what inputs
other market participants would apply in pricing the same or similar
instruments.
All of the Group's investments in direct property are included in Level 3 as it
involves the use of significant inputs. There were no transfers between levels
of the fair value hierarchy during the six month period ended 31 December 2018.
Other than the fair values stated in the table below, the fair value of all
other financial assets and liabilities is not materially different from their
carrying value in the financial statements.
31 December 31 December 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
GBP90 million Canada Life Loan (96,586) (97,334) (96,996)
2026*
*The fair value of the interest-bearing Canada Life Loan is based on the yield
on the Treasury 2% 2025 which would be used as the basis for calculating the
early repayment of such loan plus the appropriate margin.
The Group's financial risk management objectives and policies are consistent
with those disclosed in the consolidated financial statements as at and for the
year ended 30 June 2018.
8. Share capital
GBP'000
Allotted, called-up and fully paid
240,705,539 Ordinary Shares of 1p each in issue
at 31 December 2018 2,407
The Company issued nil Ordinary Shares during the period.
9. Net asset value per share
31 December 31 December 30 June
2018 2017 2018
Net asset value per ordinary share - 106.0 104.9 108.5
pence
Net assets attributable at the 255,089 252,503 261,116
period end (GBP'000)
Number of ordinary shares in issue 240,705,539 240,705,539 240,705,539
at the period end
10. Going concern
In assessing the going concern basis of accounting the Directors have had
regard to the guidance issued by the Financial Reporting Council.They have
considered the current cash position of the Group, the availability of the
loans and compliance with their covenants, forecast rental income and other
forecast cash flows.The Group has agreements relating to its borrowing
facilities with which it has complied during the period.Based on this
information the Directors believe that the Group has the ability to meet its
financial obligations as they fall due for a period of at least twelve months
from the date of the approval of the accounts.For this reason, they continue to
adopt the going concern basis in preparing the accounts.
11. Related party transactions
The Directors of the Company received fees for their services and dividends
from their shareholdings in the Company. No fees remained payable at the
period end.
12. Operating segments
The Board has considered the requirements of IFRS 8 'Operating Segments'. The
Board is of the view that the Group is engaged in a single segment of business,
being property investment, and in one geographical area, the United Kingdom,
and that therefore the Group has only a single operating segment. The Board of
Directors, as a whole, has been identified as constituting the chief operating
decision maker of the Group. The key measure of performance used by the Board
to assess the Group's performance is the total return on the Group's net asset
value, as calculated under IFRS, and therefore no reconciliation is required
between the measure of profit or loss used by the Board and that contained in
the condensed consolidated financial statements.
13. Investment in subsidiary undertakings
The Group results consolidate those of IRP Holdings Limited ('IRPH') and IPT
Property Holdings Limited ('IPTH'). IRPH and IPTH are companies incorporated in
Guernsey whose principal business is that of a property investment company.
These companies are 100 per cent owned by the Group's ultimate parent company,
which is F&C UK Real Estate Investments Limited.
14. Subsequent events
There are no material subsequent events that need to be disclosed.
15. The report and accounts for the half-year ended 31 December 2018 are
available on the websites fcre.co.uk and fcre.gg.
Statement of Principal Risks and Uncertainties
The Group's assets consist of direct investments in UK commercial property. Its
principal risks are therefore related to the UK commercial property market in
general but also the particular circumstances of the properties in which it is
invested and their tenants. Other risks faced by the Group include market,
investment and strategic, regulatory, tax efficiency, financial, reporting,
credit, geo-political, operational and environmental risks. The Group is also
exposed to risks in relation to its financial instruments. These risks, and the
way in which they are mitigated and managed, are described in more detail under
the heading 'Principal Risks and Risk Management' within the Business Model and
Strategy in the Group's Annual Report for the year ended 30 June 2018. The
Group's principal risks and uncertainties have not changed materially since the
date of that report and are not expected to change materially for the remaining
six months of the Group's financial year.
Directors' Responsibilites Statement in Respect of the Interim Report
We confirm that to the best of our knowledge:
· the condensed set of consolidated financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' as adopted by the
European Union;
· the Chairman's Statement constituting the Interim Management Report
together with the Statement of Principal Risks and Uncertainties include a fair
review of the information required by the Disclosure and Transparency Rules
('DTR') 4.2.7R, being an indication of important events that have occurred
during the first six months of the financial year and their impact on the
condensed set of consolidated financial statements; and
· the Chairman's Statement together with the consolidated financial
statements include a fair review of the information required by DTR 4.2.8R,
being related party transactions that have taken place in the first six months
of the current financial year and that have materially affected the financial
position or performance of the Group during that period, and any changes in the
related party transactions described in the last Annual Report that could do
so.
On behalf of the Board
Vikram Lall
Chairman
22 March 2019
Alternative Performance Measures
The Company uses the following Alternative Performance Measures ('APMs'). APMs
do not have a standard meaning prescribed by GAAP and therefore may not be
comparable to similar measures presented by other entities.
Discount or Premium - The share price of an Investment Company is derived from
buyers and sellers trading their shares on the stock market. If the share price
is lower than the NAV per share, the shares are trading at a discount. This
usually indicates that there are more sellers than buyers. Shares trading at a
price above the NAV per share, are said to be at a premium.
Dividend Cover - The percentage by which profits for the year (less gains/
losses on investment properties) cover the dividend paid.
A reconciliation of dividend cover is shown below:
Six months to Six months to Year to
31 December 31 December 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
(Loss)/profit for the year (9) 17,679 32,310
Add back: Realised gains (24) (20) (1,568)
Unrealised losses/(gains) 5,466 (7,711) (14,851)
Other income - (4,375) (4,375)
Profit before investment gains and 5,433 5,573 11,516
losses
Dividends 6,018 6,018 12,036
Dividend Cover percentage 90.3% 92.6% 95.7%
Dividend Yield - The annualised dividend divided by the share price at the
period end. An analysis of dividends is contained in note 3.
Net Gearing - Borrowings less net current assets divided by value of investment
properties.
Portfolio (Property) Capital Return - The change in property value during the
period after taking account of property purchases and sales and capital
expenditure, calculated on a quarterly time-weighted basis.
Portfolio (Property) Income Return - The income derived from a property during
the period as a percentage of the property value, taking account of direct
property expenditure, calculated on a quarterly time-weighted basis.
Portfolio (Property) Total Return - Combining the Portfolio Capital Return and
Portfolio Income Return over the period, calculated on a quarterly
time-weighted basis.
Total Return - The return to shareholders calculated on a per share basis by
adding dividends paid in the period to the increase or decrease in the Share
Price or NAV. The dividends are assumed to have been reinvested in the form of
Ordinary Shares or Net Assets, respectively, on the date on which they were
quoted ex-dividend.
END
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